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Survey shows need for centralised contracting

PM News
May 18, 2011

Almost two-thirds of organisations indicate that creating a visible talent pool is the largest contractor workforce related issue, according to a survey conducted by talent management solutions provider PageUp People.

However, although business units generally hire and manage contractors, more than half use a decentralised contractor management process, which leads to disengagement in the long term.

Regional CEO of PageUp People Deborah Mason said that by having a centralised contractor management process in place, organisations could not only gain visibility into the talent pool, but also closely align the engagement and deployment of contractors with organisational objectives and strategic direction.

“With contingent workers accounting for as much as 25 percent of the workforce, it is imperative that organisations streamline the way contract workers are managed,” she noted. “Contractors need to be onboarded in the same manner as traditional employees and centralisation allows organisations to monitor these processes and audit for improvements on an ongoing basis.”

According to the survey, only half of those surveyed have a clear understanding of contractor spend and only 47 percent have a clear understanding of the number of contractors employed by their organisation, indicating a need to make the process more visible and strategic.

A talent shortage in skills such as project management will lead to more organisations relying on contractors. A centralised contractor management process would assist the engagement of contractors by reducing costs and maintaining standards.

PageUp People extolled the benefits of streamlining contractor engagement, citing:

  • An ability to find, attract and retain talent
  • Increased visibility of best fit for position
  • Faster placement and seamless rollover of talent
  • Decreased turnover and advertising spend
  • Reduced billing errors
  • Increased organisational efficiency due to a standardised process and enhanced reports
  • Overall transparency.

Do you contract out your project management services, or do you use contractors on your project? Tell us about the organisation’s engagement process.

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