Procurement management is an area of the business world that has evolved immensely over the last few years. Whether it be for goods, services, or contingent workforce solutions, more and more companies are putting increased value on the potential benefits of procurement solutions. However, not every function and task should be outsourced. Knowing what to procure and what to keep in-house is the first step to successful procurement management. One of the next important aspects is the actual management of the outsourced talent you hire. Here are three tips to do so properly.
1.) Initial Hire: Before you can begin managing your freelancers and independent contractors you must first make sure to hire the right people. On average companies spend about $3,500 per candidate on recruiting alone so it’s no small piece to the puzzle. In addition to that, 44% of global recruiting leaders say that the ‘quality of hire’ is the most important metric for measuring recruiting performance, according to LinkedIn Talent Solutions. You need to ensure the quality of the people you’re considering to hire and the easiest way to do that is through procurement management. Establish a criteria and desirable attributes with the recruiting team you’re using to make sure everyone is on the same page and looking for the same type of people.
2.) Unique Compensation and Evaluation: One study from the Society for Human Resource Management (SHRM) found that the number one factor of job satisfaction was unsurprisingly compensation (60% of respondents). Contingent workers are already coming from a place of little to no loyalty since they are by definition outside sources. Keeping them happy and motivated is essential to maintaining quality production. Coming up with ways to evaluate performance and reward excellence is a great way to boost morale and help the company succeed.
3.) Recent Trends: In order to stay at the top of the industry your procurement process should be ever evolving. New technologies and services are created every day that can make it more efficient and accurate. Many leaders in the industry believe social media and passive recruiting are the most important trends currently. If your procurement management falls behind, workers will find new and better opportunities.