The “Who” in How you deliver

Workers are workers, right? Yes, but there are many kinds of workers that companies depend upon to deliver goods and services to their clients. While many are employees, more and more, firms are depending upon the expertise and capabilities of external firms and individuals to meet their goals and objectives.

The optimal engagement model for each of these labor types vary as do the risks and price points at which they are procured. Building a strategy that identifies the right model for the work to be performed not only optimizes cost but also reduces risk and best enables speed.

Key considerations when determining the appropriate labor model or channel include the duration of the support needed, the complexity of the work, the type of outcome expected, and the urgency of the requirement. These factors—along with others—play a critical role in selecting the most effective and efficient labor channel for the task at hand.

Contractor

  • How long should you engage contractors? Should there be time between their assignments? How do you develop and best administer a policy?

  • What is the market bill rate for the work they perform? If I re-engage with this worker should I pay the same or a different rate? How often should I assess bill rates? What indicators should be monitored to best balance speed and price?

  • How quickly should you be able to find and engage a contractor? How is that timeline measured? How is it improved? What expectations should be communicated with managers?

Service Worker

  • What access does this worker have to your sites and systems? How is your IP being protected? Is this person creating critical IP for your company?

  • Are you paying for time or for an outcome? What recourse do you have if the outcome isn’t delivered? Are you paying a market rate for this person’s skills? How do you measure effort?

  • How quickly should you be able to contract for service workers? What policies should be in place? How do you administer those policies?

Independent Contractor

  • What are the legal implications for engaging an independent contractor? What process do you have in place for ensuring their on going independence? How do you administer the policies? How do you educate your users?

  • What is the market rate for an independent contractor? Do you pay hourly or for an outcome? What is the best mechanism through which you pay?

  • How quickly are you able to engage an independent contractor? Are you able to measure? How do you improve? What expectations do you set with your managers?

Once the right channel is identified for the kinds of work that will be performed, the right process for engagement has to be designed and built. This process can vary greatly between channels so its important that it is designed with the end user in mind to avoid confusion, optimize results and minimize risk.

Underpinning each process are key elements including data, which inform reporting, analysis, payments and continuous improvement, technology which enables the process and removes tedious manual work and which may be integrated for even greater efficiencies and business logic which define critical operations like approvals, payment terms, background checks, required documentation and more.

All of these elements—and more—form the foundation of the Human Capital Supply Chain. By thoughtfully creating your supply chain, you can more effectively evolve it over time to enhance supplier connectivity, eliminate inefficiencies and poor-quality data, and optimize cost structures. The clarity achieved through thoughtfully designing and building your supply chain will pave the way for integrating advanced capabilities like AI, enabling more intelligent, streamlined, and differentiated experiences for both hiring managers and suppliers.