Now more than ever, businesses need to gain holistic visibility and management control over their entire workforce. Without this, companies leave themselves exposed to risk, which in the current climate of increased scrutiny from regulatory authorities, is something they can ill afford.
However, securing the required level of visibility and control can be a challenge. Nowhere is this more true than in Statement of Work (SOW) programs, with many organizations struggling to manage this branch of their workforce.
Those businesses that are finding it difficult to get a grasp on their SOW workers tend to have an unstructured approval process, lack visibility into SOW spend and generally have limited control of this branch of the workforce. This can result in numerous problems, including misclassification of employees, which leads to increased risk and higher costs. Other issues include limited adherence to milestones, inefficient use of suppliers and lengthy processing and turnaround times.
Such challenges can be overcome by implementing a managed SOW solution. By combining the expertise of an experienced MSP with leading VMS technology, the visibility and management control needed to avoid the problems discussed above can be attained, delivering benefits such as reduced risk, improved compliance and significant cost savings.
A managed SOW solution can only succeed with the buy-in of all the relevant stakeholders. This includes all of the necessary internal functions - procurement, finance, HR, hiring managers and the c-suite - but also suppliers. Securing the support of the latter is particularly important, as the solution will struggle to get off the ground if suppliers are not fully onboard.
Getting suppliers' buy-in isn't always easy, especially if they have no previous experience of working with an organization that is utilizing a managed SOW solution. To get them onside, suppliers need to be made aware of what's in it for them. A managed solution provides numerous advantages for suppliers, including a streamlined SOW and amendment approval process, faster on-boarding and project startup and quicker invoice payments. Educate suppliers on these benefits and their buy-in should be secured.
Once a SOW solution has been successfully implemented, it's important not to get complacent and think the job is done. If visibility and management are to be maintained, continual assessment is required to identify any gaps and room for improvement. The workforce is a fluid entity that is constantly altering its form - any SOW management solution needs to be similarly adaptable if it is to continue delivering the required results.
You can find out more about gaining visibility into SOW workers and reducing risk for your organization by watching this webinar that I recently hosted with SIG.
Posted 9/7/2015 By Paul Gartland
Paul Gartland has over 20 years of experience in staffing and is currently the Executive Director of Services Procurement for Allegis Global Solutions (AGS). Paul consults with companies in how they are managing their Services Procurement business to help determine...
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