The 3 Most Influential Factors Procurement Has On The Contingent Workforce

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Posted in Blog by Chrissy Dooley
Mon Apr 03 2017

The responsibilities of the procurement department has evolved throughout the years as they take on new and different tasks such as travel, meetings and events as well as the contingent workforce.

Since 95% of businesses view the contingent workforce as a key element to developing and running a successful business, it only seems right to have procurement help manage this category. The success of the contingent workforce in any organization is inevitably based on classic procurement principles, such as strategic sourcing and supplier management. As procurement takes on more responsibility in terms of the contingent workforce, they also have more influence.

Lending a Helping Hand to the Talent Search

Today, America's staffing companies employ more than three million temporary and contract employees during an average week. Although many contingent workers come from staffing companies, this is not the only place to find non-employee talent.

The wizards in the procurement department provide additional sources for great talent such as social media, freelancer marketplaces, business networking, and many more. By providing these other outlets, the procurement department helps aid the search for talent to bring in the best workers for the three major categories of the modern contingent workforce:

  1. Traditional - Temporary workers including candidates from staffing agencies

  2. Complex - Including SOW based labor and professional services

  3. Independent Contractors - Including freelancers, consultants, and contractors

95% of businesses view the #contingent workforce as a key element to developing a successful business:


The Power of HR and Procurement Working Together

Managing the human capital of an organization is no easy task. As procurement oversees the cost opportunities, HR manages talent opportunities. By sharing information between these two departments, HR will benefit from a better understanding of vendor management and market intelligence while procurement gains insight into the needs of HR and be able to better support them when sourcing talent. By learning from one another these departments can boost their quality of work.

Can interaction between #HR & procurement be the key to #contingent workforce management success?: 


Bonus: How can HR and procurement collaborate?


  1. Speak the same language. Each department in an organization tends to have its own lingo which often time intimidates or deters others from jumping in to help. By getting on the same page in terms of language and jargon, these two sectors can coincide in the workplace.
  2. Learn about each department’s tools and vendors. Knowing which suppliers each team uses helps give everyone a look at the whole picture in terms of tools and vendors.
  3. Separate material and service purchasing mindsets. The idea of investing in materials rather than talent is much different in terms cost-savings versus value.


Supplier Management Expertise

Sometimes contingent labor may require a SOW, or a statement of work, where workers are not paid for the amount of hours they dedicate to the company. Instead their compensation is based on the success of predetermined deliverables within the SOW.

Procurement’s supplier management expertise comes into play when helping to manage this type of labor, as they have experience with budget management, performance measurement and goal tracking. Some of the most intricate and important projects throughout an organization are supported by contingent labor and the expertise procurement possesses can help better manage this to ensure goals are met and quality work is done.

Does your procurement team still need help maximizing savings on your contingent labor spend? Get a little help from PeopleTicker with our quick guide!



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