Are Your Staffing Costs Being Properly Tracked?
Nearly 60% of all contingent labor is unaccounted for in financial planning, forecasting, and budgeting within the average company, according to a new report by CPO Rising. Put another (and equally disturbing) way, $6 out of every $10 spent on temps, SOWs, freelancers and/or independent contractors is being invested almost blindly. Limited oversight. Limited control. Limited planning. It’s not surprising then that one of the top challenges for businesses in 2015 is getting visibility into their contingent workforce.
The on-demand labor boom has provided tremendous opportunities for businesses to strategically access new sources of freelance talent. Unfortunately, the talent rush has left many companies unequipped to deal with the nuances (labor compliance, talent curation, etc.) associated with non-traditional work.
How much are we spending on freelancers in New York? Are legal guidelines from HR being enforced? What percentage of our overall contract spend went towards engineers? These are questions any CFO or CHRO would want quick, direct answers to. In reality, it’s more like pulling teeth.
So what’s the problem? Why is $6 out of every $10 spent on contingent labor not being tracked? The simple answer: most businesses haven’t yet implemented the processes or technology needed to properly manage the freelancer component of a contingent workforce. They’re simply not equipped.
To read the full article by Work Market Co-Founder Jeff Wald in SIA’s Staffing Stream blog, click here.