We have all heard of this procurement best practice called Consumption and Specification Management (CSM). CSM is all about ‘right setting’ all details within the scope of buying goods or services to drive value for the organization. The objective is to increase efficiencies and achieve significant cost savings without impacting the quality of a buy. When CSM is applied to the purchase of talent, the focus is on getting the right person or right skills and attributes at market competitive rates.
In the staffing scenario, a company can adopt specific, significant goals like insuring market competitive rates, creating specific/targeted job descriptions, hiring productive workers that deliver, compliance to policy, and effectively managing contracts.
I was speaking to a procurement manager, who pioneered an early CSM program. She explained to me the practical aspects of the way she and her team implemented the CSM program for hiring temporary workers.
The team first put together years of workforce data and looked at various aspects like the number of workers brought in by each of the suppliers, contract worker tenure, the amount of overtime paid, and unplanned attrition rates. As in most initiatives, they quickly discovered how difficult it was to gather and verify contingent worker data. They then developed a business case for each of company function or department, identifying ways in which their experience could be improved without impacting the quality of candidates or speed with which the workers were being hired.
Among other things, this was achieved by undertaking the following efforts:
Once established, the program was recognized as a model program by the organization which replicated it for its Europe location and found it working equally well!
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