Part one of this series explored redeployment and the benefits it can provide when used effectively. In order to best take advantage of redeployment for your business, perhaps it makes sense to have additional discussions around how to retain and reuse proven contingent workers. How does your VMS and MSP help drive reuse? How do you partner with your suppliers to mutually benefit from redeploying known contractors and consultants?
“The redeployment trend (defined as contractors reassigned to a new engagement within one week of ending a prior one) two years ago was less than 6% and more recently has increased to between 6% and 10% amongst most enterprises,” says Colleen Tiner, SVP, product strategy at Beeline. “In talking with customers, we’ve learned the driver for the increase is largely attributed to the ability to make redeployed resources productive more quickly than new resources.”
Tiner recommends companies track their redeployment rates and take advantage of VMS features that help to increase the reuse of those workers that have demonstrated positive outcomes. There are some simple steps to improving redeployment you can try today if you are using Beeline’s VMS. Take advantage of engagement feedback and extension workflows to determine “eligibility to reengage” a month before an assignment ends so you can start discussions. When your managers open a new job, make sure you are reviewing candidates that have recently completed an assignment first (or will complete soon) — these are often presented as “Did You Know” embedded analytics.
You could also make some simple process changes. If a resource is eligible for reengagement but isn’t going to be extended, the internal team or MSP can begin to remarket that candidate within the organization as similar roles come out or automatically match that candidate with any requirements that list similar skill sets.
Magnit thinks of redeployment as the primary driver of talent mobility, which is a key to developing a more agile workforce and adapting to rapidly changing times. AI-powered technology can determine what it takes to be successful in a role and identify candidates within the client’s redeployment network who are a fit based on a comprehensive view of their skill set, past experiences and ability to learn new skills. In surfacing and ranking the best candidates within the client’s redeployment network, AI helps employers retain and broaden the skills of their talent, develop diverse talent and promote a growth mindset so critical to agility.
PREMIUM CONTENT: The US Gig Economy — 2022 Edition
Understandably, a lot of technologies have this capability in place, and the response is that it’s difficult to get hiring managers to be proactive.
Also, there would need to be considerations for an organization’s tenure policy, if they have one. But these are meaningful discussions when significant cost savings are on the line. Not only is there likely soft dollar savings from recruitment, training and on/offboarding, there is room to negotiate terms with staffing suppliers that if their candidate is redeployed, they agree to onboard those contingent workers at a payroll-plus-cost model. Since they are not marketing or recruiting the resource and likely already made a decent margin on the first project, it stands to reason they would be agreeable. It may also make sense to broker a contractual discussion with staffing firms in terms of how soon their candidates are able to be remarketed outside the organization.
Let’s think about it holistically. If you save, say, 10% per contractor on an existing direct sourcing program that captures 10% of your spend, and you save 6% on candidate reusability spend which captures 65% of your total spend, then you effectively have a 6x cost savings in your program via candidate reusability. It’s a win-win for all parties — the customer, the MSP, the VMS, the staffing vendor and the contingent worker.
While there are many ways to achieve cost savings in an organization, there is a strong business case for considering redeployment of resources as a core strategy because you benefit by retaining your highly sought-after contingent workforce while gaining efficiency and significant cost savings and increased diversity and inclusion in your contingent workforce program.