For the majority of companies payroll is the largest expense. Small wonder that organizations constantly examine the profile and competency of their workforce. But it’s all too easy to examine opportunities for cost reduction and process optimization based on the ‘current ways of doing things. There's no need to slash and burn the quality and richness of talent if talent sourcing professionals focus more on 'doing better things' rather than 'doing things better'.

1. 5 Ways to Cut Workforce Spend
Without Working Hard
Ian Tomlin, Workspend Inc. July 2013
There's no need to slash and burn the quality and richness of talent if talent sourcing professionals focus more
on 'doing better things' rather than 'doing things better'.
….
For the majority of companies payroll is the largest expense. Small wonder that organizations constantly
examine the profile and competency of their workforce. But it’s all too easy to examine opportunities for
cost reduction and process optimization based on the ‘current ways of doing things.
Organizations can work tirelessly to do things better without fully examining what they can do to do better
things. Indirect sourcing of talent is seen in some quarters to be a way for employers to usurp their employer
responsibilities. Not so. Sourcing talent from indirect sources simply means that organizations call on expert
organizations to fulfill their recruiting and talent management duties on-demand as needed and provide for
and nurture best-fit skills.
Cutting workforce spend successfully means paying less for at least the same if not more talent and
productivity. At Workspend we find companies are always surprised when economies are uncovered – and
not every organization can embrace indirect talent sourcing – but for those organizations that employ a
significant amount of professional talent through recruitment vendors, sub-contractors, independent self-
employed contractors and consulting firms, the results can be quite staggering.
It’s not just about cost savings and economy: Organizations that formalize their sourcing approach for indirect
talent can tap into a rich vein of flexible workers that no longer want to work on permanent contracts. They
can find these individuals have a broader range of experiences because they’ve been engaged on more
projects, in more companies, across more industries; they are better adjusted, more project outcome
focused, better communicators and possess an excellent work ethic because they know they’re only as
good as their last project. That gives them an edge in the job market. Employers that take on these
individuals through their indirect partners will inherit this competitive advantage, along with the energy and
creativeness of workers that enjoy their lifestyle and their work.
Here are 5 ways to cut workforce spend achieved by doing better things:
1. Know your actual total workforce cost and bring it under one budget
It’s apparent that few organizations know the true cost of their workforce. It takes a little worthwhile effort to
run an audit of company and business unit expenditure on contractors, temps and consultants to source this
very useful statistic!

2. 2. Introduce a common procurement portal and unified sourcing approach
Creating a single channel for procurement makes good supply-chain management sense. Again, it’s
surprising how many organizations continue to source talent ‘outside’ of their standard procurement
protocols. 3. Install a robust supplier SLA and monitoring/reporting approach It’s not rocket science but many
organizations that source indirect talent through vendors struggle to manage performance because they
lack the management insights to spot poor performance – or have any evidence to do anything about it
when it happens!
4. Adopt ‘best value’ talent sourcing requirements portal
When managers submit staffing requirements they should adopt protocols to ensure they don’t just assume
that a permanent hire is what’s needed for each and every role. An easy way to do this is to install a simple
online staffing portal that makes it easier for managers to submit their staffing requirements and describe
their future and current talent needs. Better systems will also formalize succession planning.
5. Find an expert partner to do the running for you
The first four steps are much easier if you have a willing and expert agency to do the legwork for you. Employ
a consultancy-led managed services partner (MSP) like Workspend and you’ll find your MSP will often supply
the systems and know-how you need without you having to pay for them directly.
Read more at http://www.business2community.com/strategy/5-ways-to-cut-workforce-spend-without-
working-hard-0561037#ha2V59vBsAqzFurU.99
www.workspend.com