We all know that it is common for procurement to take the lead on running RFP sourcing events for contingent workforce (“CW”) solutions such as MSP, VMS, EOR/AOR and Direct Sourcing solutions. The Indirect Category Manager is usually working at the behest of HR or Talent Acquisition, who recognizes the growing reliance on third party labor, but may lack the resource bandwidth or expertise to manage the CW program themselves. But there are more stakeholders who need to be involved early in the process so that. . .
1. Current state challenges can be identified.
2. Desired future state goals are documented
3. RFP content is crafted that addresses critical business requirements
4. RFP scoring methodologies are weighted properly
5. Their departments are aware of the RFP process, and will be accessible when it comes time to design and implement the CW solution
Too many times, I have found that critical resources are assigned to the project team after an RFP has been released. This will create barriers to engaging their support in the process and critical review of the options. So get them involved early on.
· Information technology: Most solutions will include technology automation of processes, IT security and firewall parameters, and integrations to your tech stacks (HRIS, ERP, timeclock systems).
· Finance Ops (AP): Invoicing presentment, reconciliation, cost center coding, etc. will be key factors in technology solutions that are deployed. Plus, this impacts the noisiest part of a solution. . .getting people paid!
· Legal/Compliance: When third party labor is involved, this leaves your organization open to potential co-employment risk, mainly because you are the end recipient of the services being provided. This team will want to ensure that all components of the solutions – contracts, technologies, practices, process flows – minimize potential exposure to class action lawsuits. They will also set the standard for supplier enrollment and what terms may be flexible , and what are hard stances that are non-negotiable.
· Marketing/Communications: A critical part of implementation is providing resources to the stakeholder community that market the program and educate the hiring managers. While most solution provider have template that can be used for major announcements, it is important to set the tone using the voice of the customer. Your jargon. Your style. This group can also help establish intranet pages for online access to resource materials (who to contact, user guides, training decks, etc.)
· Security: An important part of engaging outside talent is onboarding and offboarding activities. Your internal security teams will provide the standards by location for engaging and ending worker assignments.
· Hiring Managers: Let’s face it. Hiring Managers are the ultimate end user of third party labor. Engage them early on. This allows them to have skin in the game of creating the solution and how it is configured.
And don’t forget the PITAs! What’s a PITA? As you might guess, PITA stands for “Pain in the A$$”, and they are a must for inclusion on the team! You don’t need a whole team of PITAs, but one or two are important because they may represent key departments that have special requirements that must be met. In my work with nuclear utilities, the procurement or talent acquisition reps for nuclear sites were always a great source of PITAs. They weren’t bad people, but they had a job to do that dictated that nuclear requirements around onboarding, training, and management reporting be recognized and adhered to, largely due to regulatory standards. If you can satisfy the PITAs, they can become your biggest advocate for the solution.
Now that the dream team is assembled, utilize them to help draft the RFP itself, the scoring systems, participate in down-selections and finalist presentations, technology demonstrations, etc. You have created the governance team for the program, and they will want to be included (at least at first) in quarterly business reviews and future phase rollouts of the solution.
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