HR and Procurement, the Art of Outsourcing


HR and Procurement, the Art of Outsourcing

There’s a battle brewing between HR and Procurement…. it’s called contingent labor!


For years, procurement departments have largely run the show with respect to temporary workers and independent contractors. Procurement, or purchasing departments, are the company personnel responsible for buying the supplies that a company needs to function and operate. These professionals are great at saving money and getting things on the cheap. While in charge of procurement, they have put in software systems to cut costs and make it more efficient for managers to order up temporary workers through staffing agencies.


But there’s also a negative in letting the people who buy office supplies and cubicle furniture to oversee the placement of workers into those cubes.


Managing the contingent workforce is both an art and a science. Procurement has the science down, but they don’t have the art; they don’t have the part down that understands how companies may have to be flexible relating to highly-skilled contractors; especially when it comes to Information Technology. They don’t have the part down that understands how to motivate contractors so they’ll give their best efforts and want to come back.


That art piece, is what HR offers. A company like Charter Global has the resources and knowledge to acquire the top talent or whatever skill set is needed. Outsourcing has many dimensions to it and having an organization like Charter helps companies navigate the different obstacles and challenges they face in acquiring a contingent workforce.


HR needs to get involved in managing contingent labor due to the complexities that are part of outsourcing, such as, if the person is a US citizen or not, does the position require a security clearance, etc. HR personnel should get involved soon while the labor market still favors employers.If HR doesn’t engage the talent pool soon when talent isn’t in as much demand, they’ll always be playing catch up, which means that the top talent will no longer be on the market.


Ideally, there’s a balance that’s needed for a successful outsourcing model. Procurement and HR, although a separate entity within the organization,have to understand their strengths and weaknesses for things to run smoothly. When both departments understand what each can bring to the table, that’s when the outsourcing model will become an effective part of the overall business strategy.


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