2024 CWS Summit: 8 Key Insights (in 4 minutes)

The 2024 Contingent Workforce Strategies (CWS) Summit in Dallas brought together industry leaders, innovators, and strategists to discuss the evolving landscape of non-employee labor. As organizations continue to adapt to the dynamic nature of the workforce, understanding and leveraging these key insights is crucial for staying ahead. Here are the top takeaways from this year's summit.  (4 Minute Read)

Key Takeaways from this year's CWS Summit  

1. Internal vs. External MSPs: Striking the Right Balance

Current data from the Staffing Industry Analysts (SIA) reveals a near-even split among member organizations regarding managing non-employee workflows - 50% opt for internal Managed Service Providers (MSPs), while the other half rely on external providers. This division underscores the importance of defining which parts of your non-employee workflows are best managed internally versus externally.

• Internal MSPs: offer greater control and alignment with company culture but may require significant resources and expertise.
• External MSPs: bring specialized knowledge and scalability but might need a more nuanced understanding of your organization's unique needs.

To optimize your contingent workforce program, assess your organization's capabilities, priorities, and risk tolerance. Consider factors such as compliance requirements, talent quality, cost efficiency, and the strategic importance of specific roles.

2. The Importance of Regular VMS Health Checks

Vendor Management Systems (VMS) are the backbone of efficient contingent workforce programs. However, implementing a VMS requires more than merely implementing it. Regular health checks ensure you leverage the latest features and align with the system's roadmap.

• Stay Informed: Keep abreast of new functionalities and updates that can enhance efficiency.
• Optimize Usage: Regularly review how your organization utilizes the VMS to identify areas for improvement.
• Strategic Alignment: Ensure the VMS evolves with your program's goals and the broader market trends.

By actively engaging with your VMS provider and performing health checks, you can unlock the system's full potential, leading to cost savings and improved program performance.

3. Navigating the Complexities of Light Industrial Staffing

The light industrial sector poses unique challenges that set it apart from other segments of the contingent workforce. With complex shift patterns, migratory worker populations, and sourcing and retention difficulties, organizations need specialized strategies to manage this labor category effectively.

• Complex Shift Patterns and Migratory Workers: Light industrial operations often require 24/7 coverage, leading to intricate shift schedules that can be difficult to manage. The reliance on migratory worker populations adds another layer of complexity, as these workers may have varying availability and compliance requirements.
• Sourcing and Retention Challenges: High turnover rates are common in light industrial roles due to the demanding nature of the work and competitive labor markets. Attracting and retaining qualified workers requires not only competitive compensation but also a focus on worker satisfaction and career development opportunities.
• Critical Supplier and Site Relationships: Building strong relationships with staffing suppliers and on-site management is crucial. Effective communication and collaboration ensure that staffing needs are met promptly and that any issues are quickly resolved. Suppliers who understand the specific demands of your operations can provide better-fit candidates and more responsive service.
• Training and Upskilling Opportunities: Today's light industrial workers are increasingly seeking opportunities for training and professional growth. Offering training programs and pathways for upskilling can enhance worker loyalty, reduce turnover, and improve overall productivity. This investment not only benefits the workers but also strengthens the organization's talent pool.
• Reevaluating Background Check Requirements: Traditional background checks (BGCs) can sometimes be a barrier to hiring in a tight labor market. Loosening non-essential requirements—while still maintaining safety and compliance standards—can expand your candidate pool. Organizations should assess which background criteria are critical and where there is flexibility to adapt.

By addressing these specific challenges, companies can better navigate the complexities of light industrial staffing. Tailoring strategies to meet the unique needs of this sector—such as flexible scheduling, targeted training, and strategic supplier partnerships—will enhance your ability to source and retain the necessary talent. A focused approach will ultimately lead to a more resilient and effective light industrial workforce within your contingent labor program.

4. Independent Contractors (ICs): Tapping into a Trillion-Dollar Market

The total non-employee market is a staggering $3.8 trillion, approximately half attributed to independent contractors (ICs). High-skilled professionals and younger workers are increasingly drawn to gig work, valuing flexibility and autonomy.

• Access Challenges: Despite the growing pool of ICs, organizations need help engaging this talent due to compliance risks and administrative complexities.
• Evolving Solutions: New platforms and services are emerging to streamline the process of sourcing, onboarding, and managing ICs.

To capitalize on this talent stream, companies must carefully navigate regulatory landscapes and adopt solutions that mitigate risks while providing access to top-tier independent talent.

5. Statement of Work (SOW): Beyond Contingent Labor

SOW engagements are distinct from traditional contingent labor and require specialized approaches.

• Unique Needs: SOW projects often involve defined deliverables, timelines, and milestones that differ from typical staffing arrangements.
• Dedicated Solutions: Leveraging technology and services tailored to SOW management is crucial for success.
• Supplier Limitations: Traditional staffing suppliers may need more tools or expertise to handle SOW projects effectively.

Investing in SOW-specific solutions and partners can improve project outcomes, cost control, and alignment with organizational objectives.

6. Direct Sourcing: An Emerging Strategy with Untapped Potential

Only about 3% of roles are filled through direct sourcing, indicating an immature market with significant room for growth.

•  Benefits and Barriers: While direct sourcing can reduce costs and improve talent quality, skepticism exists due to unproven benefits and apprehension about changing established processes.
• Strategic Focus: Rather than attempting to overhaul the hiring process, organizations should target high-volume, critical job titles where direct sourcing can have the most impact.

By starting small and demonstrating success, companies can build confidence in direct sourcing strategies and expand them over time.

7. The Gradual Integration of Artificial Intelligence (AI)

AI continues to make inroads into the contingent workforce space, albeit slowly

• Chatbots and Automation: Suppliers use AI-powered chatbots to match candidates to roles more efficiently.
• Enhanced Screening: AI helps screen and shortlist candidates, saving time and resources.
• Performance Metrics: AI tools assist in measuring and analyzing performance, leading to data-driven decision-making.

Despite these advancements, significant work remains to harness AI's potential fully. Organizations should stay informed about AI developments and consider pilot programs to explore benefits.

8. Challenging the Status Quo: Embrace Curiosity and Courage

A recurring theme at the summit was the call to action for organizations to challenge existing practices.

• Be Curious: Seek out new providers, technologies, and solutions that could enhance your contingent workforce program.
• Be Brave: Don't hesitate to adopt innovative approaches, even if they deviate from traditional methods.

Fostering a culture of innovation and openness can help companies adapt more readily to market changes and gain a competitive edge.

 Conclusion

The 2024 CWS Summit in Dallas highlighted the dynamic nature of the contingent workforce and the importance of strategic adaptation. From balancing internal and external MSPs to embracing AI and direct sourcing, the key takeaways provide a roadmap for organizations looking to optimize their non-employee workflows.

By staying informed, being proactive, and embracing change, companies can navigate the complexities of the modern workforce and position themselves for success in an ever-evolving landscape.

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