July 28, 2014
Start by defining the intended outcome for the contingent labor hiring/management process. For example, do you need to comply with Sarbanes-Oxley or standardize direct and indirect labor programs globally to reduce costs? Next, identify the priority labor spending categories—assembly line, administrative support, etc., and the corresponding business units, and determine the sequence for system deployment. It is critical to build a cross-organizational team based on targeted categories and to secure strong executive sponsorship. For a global program, garner buy-in from individual localities first to ensure government regulations and business needs are met.
Next, introduce controls to realize savings from policies and negotiated contracts. The system should allow the organization to start with a level of automation within its comfort zone and move to a more rigorous model that encompasses more service categories over time. Ultimately, the more categories of labor managed through automation, the more cost savings the HR department will drive for the business. Apply and maintain a discipline of controls around the process: