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How Technology is Transforming Contingent Workforce Management

For any business that believed it was resilient to change, the pandemic was a loud, unexpected wake up call. Whether or not it was a rude one, the jolt encouraged every company to take a closer look at making work and workforces agile and resilient. Better candidates need to be hired faster, working styles have to become more flexible, greater productivity and efficiencies need to be achieved. 

And so, one big question looms – “What’s to be done?” While the answer seems straightforward (embracing technology), companies are struggling to bridge the gap between meeting worker needs and increasing automation. While the goal of optimizing workforce management through technology can seem unattainable to both growing and established organizations, it’s far from impossible. Let us tell you how, whether you’re gathering resources to implement new technology or trying to improve your company’s technology adoption and change-management success.

Workforce management technology – A compelling investment?

Not too long ago, companies began to realize that investing in technology was key for development. As workforces grew and change became inevitable, manual program management turned out to be untenable, especially for large entities. As workforces are changing, so is workforce management, but companies often fail to keep pace.

The 2022 State of the U.S. Workforce survey from TCP Software Solutions suggests the move to advanced workforce management technology is slow, yet welcome. The survey found that 58% of businesses rely on handling their workforce’s data manually through emails and spreadsheets or through basic digital tools even today. In a landscape impacted by Covid-19, where about 45% of the American workforce prefers a hybrid working style, this approach seems less than ideal. The silver lining is that 72% of businesses are adopting HR and workforce management technologies by increasing budgets; 52% of those see value in incorporating cloud technology to automate tasks, improve communication, and expedite decision-making. 

While technology can simplify and streamline workforce management, barriers to adoption can stand in the way. Limited technological competence, lack of funds, or difficulty in finding the right tools to fit specific needs can be real challenges. Companies will be able to confidently forge ahead with investments in technology when they concentrate on their biggest and most powerful component – people.

The present – and future – are all about people

For organizations to identify the best ways to handle workforce processes, they must start by understanding the actors that affect them. According to a 2022 research report from The Josh Bersin Company, companies should pay attention to nine key trends to be successful in workforce management:

  • The current economy is reinventing and redefining work
  • Technology is one of the main facilitators of hybrid working
  • Executives are driven by a learning and upskilling-centric mentality 
  • Talent marketplaces are the not-so-secret staffing weapon of every business
  • Employee experience is everything
  • Workforce diversity is expanding to include equity, inclusion, and belonging
  • People analytics is at the core of every business function
  • Updating HR capabilities isn’t an option, it’s a necessity
  • The CHRO’s role is more important now than ever

It’s clear that the common thread benefiting companies is to focus less on the business angle and more on the human one. The Bersin report pointed out a common thread across studies from 2020-2022: “Listening to employees is one of the most valuable management practices we have.” 

The importance of technology in contingent workforce management

A new world of talent acquisition, engagement, and management is here, one in which data around workers and their experiences should be inextricably tied to every decision we make. And the trends we’ve discussed aren’t applicable only to companies with full-time workforces. In industries where contingent workforce solutions are present, talent-tracking and performance-management platforms are essentials.  

Whether programs are managed by an MSP or internally, visibility into the details is key. A major benefit of using an MSP is its ability to promote visibility into key performance indicators, compliance, spend management, and productivity (of suppliers and workers). Tracking personnel records and monitoring output are best handled by people-centric solutions like vendor management systems (VMS). 

Data-based: A complete workforce management solution

Comprehensive workforce management solutions are most effective when they are dynamic and scalable. In today’s unpredictable economy, changes to business strategies, particularly around employment, need elasticity and the capacity to accommodate unexpected, sudden shifts. Modern workforce management technologies that rely on data and actionable insights provide a heightened ability to predict and forecast. They enable companies to know specific details like how many workers will be needed at a given time, what skills and pay rates will be required, and which suppliers can provide the best talent.  

Data represented as metrics, business intelligence, transparency, and benchmarks allow businesses to predict future needs and counter potential fluctuations in the market or within the organization. Yet, to be meaningful, data must be interpreted and curated. Many growing businesses don’t have the time or staff to manage programs and analyze data, even with legacy technology solutions in place. 

That’s why you need an end-to-end  solution that combines vendor management, AI-powered vetting technology, applicant tracking functionalities, and a powerful performance management dashboard: Prosperix VMS Network. 

Welcome to the future of contingent workforce management.

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