If you're plugged into human capital management trends, you've probably heard about the growing use of contingent...
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workers, or the "gig economy," as it is informally known. Contingent labor includes temporary workers, contractors, consultants and more.
According to a 2015 report by Staffing Industry Analysts, 20% to 50% of the total workforce is comprised of these nonemployees, and many organizations are now using some form of contingent labor to varying degrees. However, 51% of organizations don't have sufficient visibility into their contingent workers.
SAP recognized the growing need for contingent workforce management and, in 2014, purchased Fieldglass, a maker of vendor management system (VMS) software, for an estimated $1.1 billion. Since the acquisition, SAP has also released the contingent workforce management (CWM) module in SAP SuccessFactors Employee Central and provided a packaged integration for Fieldglass VMS and Employee Central.
Full-fledged vendor management
Fieldglass VMS provides many contingent workforce management capabilities, such as sourcing and procurement, management of vendors, invoicing, compliance and risk mitigation management, and the creation of specialized talent pools. Customers can use Fieldglass VMS independent of other applications they use for contingent workforce management.
Fieldglass VMS provides ease of use to hiring managers by enabling more managed processes and reducing the number of suppliers needed. It also has functionality for the following:
- The creation of job postings and multibid statements of work
- Rate management
- Onboarding and offboarding
- Time entry
- Automated invoicing
- Performance tracking and reporting
Total workforce management
Users can extend their contingent workforce management by integrating Fieldglass VMS with the CWM module in SuccessFactors Employee Central.
The CWM module enables users to view contingent worker profiles, visualize contingent workers in the org chart, convert a contingent worker to an employee (and vice versa) and create and run reports either with or without contingent workers. Additionally, metric packs in SuccessFactors Workforce Analytics mean that users can view key metrics related to contingent labor. Such metrics include the following:
- End of period (EOP) headcount (total workforce)
- EOP headcount (contingent workers)
- Staffing rate
- Average workforce tenure
- Average pay rate
The contingent worker profile stores a subset of employee data, including basic personal information, contact information and job information. As expected, nonmandatory personal information, such as an employee's date of birth and Social Security number, are not stored. Details of the work order related to the contingent worker can also be visualized in the system.
Holistically, all of these features combined enable total workforce management.
Contingent workforce management on your own
Customers who have SuccessFactors Employee Central but don't have Fieldglass VMS can still leverage the CWM module. The Add Contingent Worker wizard enables you to add contingent workers into the system in a similar way to the Add New Employee wizard, but with a smaller subset of data than would be captured for an employee. This means you can still have a holistic view of your workforce without needing Fieldglass VMS.
Customers who use another VMS and want to integrate it with SuccessFactors Employee Central can build a custom integration by using the SuccessFactors OData API.
What's possible in SuccessFactors Workforce Planning
Within the SuccessFactors Workforce Planning module, it is possible to do some contingent workforce management. Different scenarios and simulations can be created to assess the financial impact of different workforce breakdowns. This can be especially useful if you are planning to use some level of contingent labor in the future and want to evaluate different levels of contingent staffing based on multiple variables.
As the use of contingent labor rises significantly, organization need more efficient and effective ways to procure contingent workers, manage them and have a total combined view of their workforce. Whether using Fieldglass VMS, the CWM module in SuccessFactors Employee Central or both, managers can begin to get a better handle on contingent labor than they have ever had before.
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