The Convergence of HR and Procurement in the Gig Economy
There has been a shift in how work gets done and the ways workers want be engaged that is creating a far-reaching ripple effect throughout the digital economy and business platforms. A benefit of this changing landscape is a convergence in the strategy and engagement of HR and Procurement. A practical example of this disruption is the disassembly of traditional role-based projects and the rise of skill-based, deliverable tasks performed by separate contributors.
This new approach requires HR and Procurement to think differently about how they use a multi-channel approach to source talent, coordinate the performance of contributors and measure their deliverables. According to the latest Ardent Partners State of Contingent Workforce Management report, only 30 percent of businesses have struck an ideal balance in their contingent workforce management programs, despite 56 percent viewing collaboration between HR and Procurement as vital to a program’s success. As the economy changes rapidly, organisations have to embrace a more collaborative mindset in order to come out winners.
As a first step, businesses should understand the rising potential of the gig economy and how their talent acquisition strategies should mirror the channels through which potential workers wish to be engaged. Equally, companies should embrace innovations in machine learning and analytics as they continue to play a critical role in external workforce engagements.
Secondly, your plan for digital disruption must factor in provisions for your organisation’s talent management capabilities. Businesses need to invest in technologies that provide visibility into the total workforce in order to drive more strategic hiring decisions based on tenure, project delivery or other factors. Lastly, adoption of a connected talent ownership model between HR and Procurement will drive greater user experience for both the business and the workforce alike.
The way in which work gets done is constantly evolving, and it’s important that HR and Procurement are agile enough to respond to market changes. Businesses can no longer afford to use traditional tactics for their procurement needs, as competitors and new players in the marketplace are utilising new technologies to drive their competitive advantage. If your organisation hasn’t begun talking about these changes, now is the time to start!