It’s been an ongoing and popular trend since 2008 that organizations are relying more heavily on the contingent workforce. The conventional thinking in most industries was that an 80/20 split (80% traditional payroll employees, and 20% contingent workers) created the conditions for an optimal workforce. Employee consistency, reliability, and efficiency in both communication and process enabled for strong company culture.
But with the financial crisis, organizations were forced to reconsider the traditional workforce split. This, along with the diverse skills and new ideas about “how work gets done” brought on by the flux of Millennial workers, has shifted the culture and best practices for employment models. In many cases, organizations now have set the strategic goal for a 50/50 split between traditional payroll and external workers.
The benefits of a 50/50 split are numerous, but so are the challenges. Specifically, the new split creates vulnerabilities with knowledge sharing, collective learning, following process, and high engagement. Can an organization retain a strong and unique culture that permeates across the entire workforce when half of the organization is subject to change?
Total Workforce Management
Total Workforce Management means the management of all of the labor a company utilizes: traditional payroll and any form of worker or service from outside. By integrating SAP Fieldglass with SAP SuccessFactors organizations can bridge that gap between the benefits and risks of embracing the contingent workforce.
SAP Fieldglass benefits organizations in 5 key ways:
- Gain Visibility
- Mitigate Risk
- Increase Supplier and Worker Quality
- Streamline Process
- Control Spend
When leveraging SAP Fieldglass with SAP SuccessFactors, an organization can gain insights into questions like:
- What is our total workforce headcount and distribution across different employment types?
- Which business unit or jobs rely most heavily on external workers?
- If I am looking for a particular type of talent, how do I engage it? Or where does it exist?
- Are my talent resources in line with my workforce plan?
“This solution will provide HR procurement, legal, etc. all in one place. So this becomes more of a business system, than an HR system.” Paul Rose, COE Practice Director, Employee Central, from Rizing HCM spoke to how SAP Fieldglass and SAP SuccessFactors relate in a recent webinar. “It’s a very tight integration, it’s not just a connection point… The organization chart clearly outlines which people are employees, and which are contingent workers, and in terms of the provisioning… Role Based Permissions is already secured on the platform. So it’s very much configurable to each company’s needs.”
The Future of Work
Organizations will need to continue to innovate when it comes to sourcing and managing labor and talent. As analytics continues to bring about deeper insights into key business decision making, and machine learning accelerates collective learning, developing a strategy to see the Human Capital of an organization holistically is critical in trying to retain cohesive processes and effective cultures.
For more on Total Workforce Management, take a listen to the rest of the Rizing HCM’s SAP Fieldglass and the Future of Work Webinar.