How Workforce Optimization Helps Companies Gain a Competitive Edge

By MBO Partners | July 7, 2022

Share
Workforce Optimization img

Modern organizations increasingly have come to see the value in an integrative workforce strategy, one that relies on highly-skilled, independent workforce to remain agile and competitive.

By strategically leveraging independent talent who can bring the right capabilities on-demand, organizations can achieve critical objectives on schedule, reduce costs, close staffing gaps, and boost efficiency.

Technology increases transparency into independent workers, minimizing the risks and costs embedded in legacy practices.

In response to this widespread challenge of COVID-19, today’s organizations are implementing workforce optimization strategies in order to achieve efficiency and cut costs. Forward-thinking companies are leveraging new technologies and adapting to flexible modes of working, such as virtual meetings and remote work.

This new paradigm has highlighted the vast chasm between the traditional business model and the emerging modern one.  One model will be able to adapt to the new reality and thrive, and the other will struggle to survive.  Modern organizations increasingly have come to see the value in an integrative workforce strategy, one that relies on highly-skilled, independent workforce to remain agile and competitive.

Businesses are realizing that they need to think differently, and independent talent can give them a competitive advantage and access to in-demand skills. With a more flexible workforce, organizations can quickly respond to project demands, client expectations, more easily meet budget constraints, and remain open to innovation.  Put simply the way companies leverage talent resources in the future can, for the first time, create true competitive advantage.

Here are four ways workforce optimization can help your enterprise gain a competitive edge.

1. Increased Talent Access

Organizations today need a way to easily access high-value talent. Independent talent, by nature, is not easily found in a single place. Research shows on average independent professionals have 3-5 clients at a time, so it is incredibly important to make sure these resources work for you and not the competition. To be a Client of Choice, forward-thinking companies are using modern technology to change where, when, and how work gets done. By shifting focus from hiring for a specific job that focuses on the role to engaging talent for a project focused on a specific outcome, companies can decrease operating costs and solidify a competitive foothold in the modern marketplace.

For example, technology like online marketplaces enables a transaction between the client and independent professional directly online, eliminating the need for a third-party staffing agency or consulting firm. A freelancer or independent contractor can fill out a profile and then apply to or be matched with projects that fit their skill set. On the other end, enterprise managers can post opportunities for available talent, and then evaluate and engage the right person.

2. Improved Efficiency

Today’s technology combines tools, services, data, and processes to create a seamless end-to-end experience for independent talent and managers alike. Digital platforms bring together contingent talent with skills that run the gamut from graphic design, project management, and coding, to engineering and marketing. These platforms facilitate project-based work, allowing companies to efficiently deploy talent when and where they need it most.

In addition to finding skilled talent, managers can also use this technology to facilitate onboarding and engagement processes. Once engaged, they can easily manage contractor time and expenses, process invoices, resolve issues, and track performance. With a consistent process in place to manage the talent lifecycle, it becomes easier for organizations and independent talent to work together and build strong, lasting relationships.

3. Mitigated Compliance Risk

Companies must remain compliant when engaging independent contractors, ensuring all tax, labor, and other statutory requirements are met. Technology increases transparency into independent workers, minimizing the risks and costs embedded in legacy practice such as managers using their own networks to find talent, or payrolling all independent contractors regardless of their background.

Practices such as requiring up-to-date qualification documentation and offering flexible engagement options minimize compliance risk. Many companies choose to partner with an organization like MBO Partners, which specializes in independent workforce engagement and compliance to further ensure compliance measures are met. Part of MBO’s compliance process, for example, involves collecting and storing qualification documents for each independent professional an organization engages to minimize risk and build a defense file to bolster compliance.

4. Increased Talent Satisfaction

The ability to engage independent talent is increasingly desirable, and, as such, the competition to attract, engage, and retain this talent is becoming more of a challenge. Independent professionals have skills that are in-demand and they have a big say in the clients they decide to work with. Organizations must balance meeting the needs of this pool of talent in order to remain an attractive place to work.

Top satisfaction factors include a clear onboarding process and project scope, quick and fair compensation, and reasonable processes and procedures. Prioritizing these needs helps companies stand out from their competition and make them a more desirable choice for top independent talent. Again, technology plays a big role here creating a simple, clear, and streamlined work experience for independent contractors you engage.

By strategically leveraging independent talent who can bring the right capabilities on-demand, organizations can achieve critical objectives on schedule, reduce costs, close staffing gaps, and boost efficiency.

For more information on how independent talent can optimize your workforce, reach out to our team of experts.

To learn more, read our case study on how a leading, publicly traded healthcare improvement company implemented workforce optimization strategies to direct source talent and improve talent engagement efficiency. 

Related Posts

From Employer of Choice to Client of Choice

Independent labor has become mainstream in the American workforce. According to MBO’s 12th Annual State of Independence Report, 2022 was another year of big growth for this market segment as the total population increased to 64.4 million, one-third of which are Full-Time Independents. As more and more companies move toward a blended or optimized workforce—a…

Read More...
consultant

MSP vs VMS: Which is better for managing contingent labor?

Today’s business leaders are experiencing pressure to improve service, move faster, and find new skills in their workforce. With a need to shift strategies to better meet business goals, enterprises are increasing their dependence on contract, freelance, and gig workers—adopting a flexible workforce that is comprised of both full-time and independent talent. Today, there are…

Read More...
Team made up of employees and independent professionals

7 Best Practices for a Scalable Contingent Labor Workforce Program

A blended workforce, combining full-time and independent talent, offers strategic opportunities for business growth. Staffing flexibility, the ability to compete for in-demand skills, and improved speed to market are some of the results that can be achieved with a well-integrated contingent labor program. It’s not unusual for a company to start small when integrating independent…

Read More...

Trending

Tags

Learn more about the MBO Platform

FOR INDEPENDENT
PROFESSIONALS

Start, run, and grow

your independent business with MBO

FOR
ENTERPRISES

Engage, scale, and optimize

your independent workforce