I’ve lived in Colorado for almost 35 years now (which, I think, qualifies me as a “semi-native” according to the rules around those once ubiquitous bumper stickers that displayed one’s status regarding, er, nativeness) and have always loved the spring season here as it is a time of amazing change. Without (hopefully) coming across like cheesy greeting card it’s cool to watch the snow melt, the flowers pop up, the leaves unfold, and (this being Colorado after all) the bikes and camping gear come out!
How does all of this relate to why I can’t wait for the upcoming IQNsiders event (April 28th – 30th in Colorado Springs)?
Well, in my view, it relates handily as I strongly believe that, like Spring in Colorado, this is a time of great change, both in the services procurement industry and at IQNavigator! IQNsiders will be a great time to hear about those changes, to talk about how they affect your company and your VMS/MSP program, to ask questions that have kept you up at night, and to network with peers from many IQN clients, people who may provide a perspective or an idea you’ve not heard before (and I bet you can do the same for them)! The planned agenda is a good one, full of interesting speakers and topics and will do a lot to prepare and excite you for the seasons ahead.
I’m excited to be speaking on Maturing your Global Contingent Workforce Program. This will be a great session for those of you who have successfully expanded globally, but are looking to further leverage your position and mature strategically. I’ll provide some tools that will help you assess whether your global program is on (or off) track as well as lay out some steps that will help you gain strategic maturity.
Sound interesting? There are many more great topics lined up, and you don’t want to miss this exciting event. Sign up today!
February Job Creation Report Beats Expectations
The BLS Employment Situation report showed 175,000 new jobs created in February, exceeding expectations. The news was a welcome, given the weak job creation seen in December and January. Even those dismal numbers were revised upward by 9,000 and 16,000, respectively.
Good News – The Unemployment Rate is Up
The unemployment rate edged up 0.1% to 6.7%, largely because the number of people seeking jobs grew faster than the working age population. The broadest measure of unemployment, the U-6, fell 0.1% to 12.6%. These two facts suggest that improving employment prospects, and perhaps expiring unemployment benefits, are inducing people to reengage with the labor market.
A Vendor Management System (VMS) is the backbone of any contingent workforce management strategy. These systems have evolved in the past decade to become a vital solution in the contingent workforce space and a solution to manage all aspects of the contingent labor including helping companies stay compliant. In fact, organizations that do invest in a VMS are 80% more likely to be compliant than organizations not using a VMS. As the task of keeping compliant with the management of independent contractors becomes more complex, organizations that invest in a VMS will have a clear advantage.
One way that these solutions help organizations stay compliant is by giving them the visibility, insight and data around their workforce in order to comply with federal, state and local policies. They not only help organizations handle the proper classification of employees but can provide the capabilities needed for organizations to stay compliant in the long-run.
Once compliance is in check, these organizations are also more likely to improve business results. Consider the following:
- Organizational Efficiency: VMS users have increased total organizational efficiency 70% or more than non-VMS users.
- Greater Visibility: When organizations leverage a VMS, they have greater visibility into their contingent labor.
- Improved Performance: Organizations using a VMS are more likely to meet or exceed goals and objectives by 53% compare to organizations that do not.
Investing in a VMS system can have a dramatic impact on an organization’s ability to stay compliant and drive business results. Organizations considering these solutions should evaluate providers that demonstrate deep domain expertise in the contingent arena, have a proven track record to helping companies improve efficiency and stay compliant, and stay committed to customer satisfaction.
Find out more:
Editor’s Note: 2014 is already off to a big start for IQNavigator, with the recently announced acquisition of ProcureStaff Technologies. We believe this year will be significant, not just for IQNavigator but also for the industry as a whole. Over the next couple of weeks we will be publishing insights from some of our thought leaders about what they anticipate for 2014.
I believe that a faster year-over-year rate of penetration into SOW-based services spend in 2014 will not only drive record-setting VMS and MSP growth, but will also have the following impacts on our industry: Continue reading
Staying compliant is much more than just properly classifying workers. Organizations must consider various internal, federal and state policies and stay informed of any changes to these policies. Staying compliant today means staying prepared. It means organizations are better able to address challenges and provide the right information around the use of contingent labor. So…it is no surprise that when organizations are able to comply, they are also able to improve visibility, gain executive support and evaluate the results of their contingent labor.
Here is a closer look:
Improve Visibility: It is hard to talk about contingent workforce management without talking about visibility. Aberdeen research found a direct link between organizations that are compliant and organizations that have strong visibility. When organizations are diligent about compliance, they understand the “who, what, where, when, why and how” around the use of 1099s across the organization as well as the performance of 1099s. They are not only concerned with how 1099s are being classified but also, how they are contributing to overall organizational success. Also, these organizations indicated that the primary areas of the business where they are using 1099s include: IT (49%), Management Consulting (41%) and Engineering (23%).