Though this be madness, yet there is method in ’t. – Shakespeare
In the course of our daily dealings with the world, that is all we strive for – to see that there is some method in the madness we are going through. Determining workforce size and composition is always one such challenge, where we are almost always unsure but keep striving to balance our endeavors.
Most IT project managers will agree with me when I say that their need for workforce agility to meet the pressures of project deadlines keeps them walking the tight rope – not knowing if they will be able to retain their balance. Far too often, a time comes when the project threatens to lose momentum and everyone scrambles to augment the resources, afraid to miss the project deliverables and deadlines. Many have come to depend heavily upon contingent workers to meet these last minute pressures. Some have found that they ended up spending much more than their initial budget projections to address this last minute change in course, and regretted the shortsightedness which led to this reckless overrun of cost estimates.
The use of contingent workers is growing. Most estimates indicate that 20-25% of all workers are engaged in temporary assignments. With the increasing pervasiveness of temp labor, companies must recognize that these resources are strategic assets. They collectively represent significant corporate expenditures, and should be planned, budgeted and managed as any other asset. Yet, for all of the discussion about “total talent management”, few companies are prepared to do this.
Most large organizations have taken preliminary steps, establishing contingent workforce management programs to centralize the procurement and use of agency contractors. Many have enhanced these program, also addressing the use of independent contractors or spend on SOW-based projects. Only a few pioneers are proactively including all labor – permanent and contingent – in their annual planning and budgeting initiatives.
In the absence of this comprehensive planning, can line managers anticipate the need to outside assistance, and plan for it as part of their specifications for upcoming projects and initiatives? After all, early planning can secure the right personnel at market-driven rates and money saved is money earned and can be used for further investment in more initiatives and business activities.
It is important for any business to evaluate and ascertain the capabilities of its workforce, before planning for any additional hiring. Consider that the tipping point is at hand when all the following parameters are met.
In most large organizations, the complexities associated with effectively managing contingent labor and outsourced projects can only be addressed through the use of technology. Vendor Management Systems streamline processes, automate work steps, eliminate errors and violations, control costs, and provide an enterprise-wide view of the management of the contingent workforce. The leading vendor management systems, like DCR’s Smart Track, go beyond transactional support to facilitate true workforce planning by recognizing trends, benchmarking by overlaying market data with client transactional history, and offering guidance on the optimal worker type, sourcing means, and rates for and required positions.
Mail (will not be published) (required)
eight − 1 =
Thanks for Subscribing to DCR Blog.