Beyond Procurement – CoEs as Enablers of Total Workforce Strategy

November 6, 2024

The Evolution of Temporary Labour Programmes

In recent years, organisations have fundamentally reconsidered how they manage their temporary workforce programmes. Traditionally, these programmes were led by Procurement departments, focusing primarily on cost savings and supplier management. However, experience has shown that successful temporary workforce management requires active collaboration between multiple business functions: Procurement, HR, Operations, and IT.

Beyond Traditional Boundaries

The historical approach of procurement-led programmes brought rigour. However, this single-function approach often created unintended challenges. Departments found themselves working with processes that, whilst efficient from a procurement perspective, didn’t always align with their operational needs. HR teams struggled to ensure temporary workers integrated effectively with permanent staff, while IT were brought in too late to provide the necessary tech infrastructure.

Building Effective Collaboration

Working as a transformation partner, we recently helped a leading organisation address these challenges by establishing a Temporary Workforce Centre of Excellence (CoE). This innovative approach brings together not only internal stakeholders but also includes the organisation’s top five strategic suppliers as active participants in programme governance.

The CoE operates through bi-annual meetings where all stakeholders collaborate on programme strategy, operational improvements, and innovation opportunities. As an independent facilitator, we ensure these meetings remain focused and productive, managing potential conflicts of interest whilst driving genuine programme improvements. This neutral coordination has proved crucial in maintaining momentum and ensuring all voices are heard.

From Temporary Workforce to Holistic Talent Strategy

What began as a temporary workforce initiative has evolved into something far more significant. The CoE has become a catalyst for broader discussions about talent strategy, creating a pathway toward truly holistic workforce management. By bringing together diverse stakeholders regularly, the organisation has begun breaking down traditional barriers between permanent and temporary workforce management.

This evolution has revealed several key insights:

  • Future workforce planning must consider all talent types simultaneously
  • Technology investments should support seamless management of both permanent and temporary workers
  • Supplier partnerships can extend beyond temporary staffing to support broader talent objectives
  • Skills development and career pathways can span both permanent and temporary workforce populations

The Strategic Advantage

Organisations that successfully integrate their approach to permanent and temporary talent gain significant competitive advantages. They can respond more quickly to market changes, access broader talent pools, and create more flexible workforce solutions. The CoE model provides a proven framework for beginning this journey, starting with temporary workforce management but naturally evolving toward comprehensive talent strategy.

Looking Forward

As the lines between different types of employment continue to blur, organisations need frameworks that support holistic talent management. The CoE model, particularly when facilitated by an experienced transformation partner, provides a practical starting point for this evolution. Regular reviews and adjustments ensure the programme continues to meet evolving business needs while maintaining efficiency and compliance.

Conclusion

The evolution from procurement-led temporary workforce programmes to integrated talent management represents a crucial strategic shift for modern organisations. The Centre of Excellence model, incorporating both internal stakeholders and strategic suppliers, provides a practical framework for beginning this journey. This balanced approach not only optimises current workforce management but creates pathways toward future talent solutions.

As the nature of work continues to evolve, organisations that successfully implement cross-functional partnerships will be better positioned to attract, retain, and deploy talent in all its forms. The key to success lies not in any one department taking the lead, but in creating a collaborative framework where all stakeholders’ expertise is valued and integrated into strategic workforce planning.

The future belongs to organisations that can break down traditional silos between permanent and temporary workforce management. By starting with a well-structured approach to total talent workforce management, supported by neutral facilitation, and innovation.

Written by:

Jools Barrow-Read

Founder

I’m Julie Barrow-Read, known to all as Jools, and I’m the founder of RedWizard. With a 20-year background in strategic... Read more

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Embracing Skills-Based Hiring

November 4, 2024

The landscape of talent acquisition is undergoing a significant shift. As industries evolve and new technologies emerge, organisations are finding that traditional hiring methods based on qualifications and experience alone are no longer sufficient. Enter skills-based hiring: a recruitment strategy that focuses on a candidate’s demonstrable abilities, competencies, and knowledge relevant to a specific role.

The Rise of Skills-Based Hiring

The transition towards skills-based hiring is driven by several factors. The rapid pace of technological change means that job roles are evolving faster than ever before. Simultaneously, the rise of the gig economy and the increasing demand for specialised skills have created a more dynamic and diverse talent pool.

Traditional recruitment methods, which tend to emphasise factors such as educational qualifications and years of experience, are proving inadequate in this new landscape. They often fail to capture the full range of a candidate’s capabilities and can inadvertently exclude talented individuals who have acquired skills through non-traditional paths.

Benefits of a Skills-Based Approach

Adopting a skills-based hiring approach offers numerous advantages:

  1. Access to a Broader Talent Pool: By focusing on skills rather than traditional qualifications, organisations can tap into a more diverse range of candidates. This approach can help identify individuals with the right mix of abilities, regardless of their background or career path.
  2. Improved Job Performance: When hiring is based on specific, relevant skills, there’s often a stronger correlation with job performance. Candidates who can demonstrate the required competencies are more likely to excel in their roles.
  3. Enhanced Diversity and Inclusion: Skills-based hiring can help reduce unconscious bias in the recruitment process. By focusing on abilities rather than pedigree, organisations can create more diverse and inclusive teams.
  4. Increased Agility: In rapidly evolving industries, skills-based hiring allows organisations to quickly adapt to changing needs by bringing in individuals with the most relevant and up-to-date skills.
  5. Better Retention: When employees are hired based on their skills and can use these skills in their roles, they’re often more engaged and satisfied, leading to improved retention rates.

Implementing Skills-Based Hiring

Transitioning to a skills-based hiring approach requires a shift in mindset and processes:

  1. Identify Core Skills: For each role, determine the essential skills required for success. This goes beyond technical skills to include soft skills like problem-solving, communication, and adaptability.
  2. Develop Skills Assessments: Create or adopt assessment methods that effectively evaluate the identified skills. This could include practical tests, simulations, or project-based assessments.
  3. Rethink Job Descriptions: Move away from long lists of qualifications and instead focus on the key skills and competencies required for the role.
  4. Leverage Technology: Utilise AI and data-driven tools to help identify and assess skills more effectively and objectively.

Challenges and Considerations

While skills-based hiring offers many benefits, it’s not without challenges. Developing accurate skills assessments can be time-consuming and may require expertise.  There’s also the risk of overlooking valuable traits that don’t fit neatly into a skills framework, such as cultural fit or potential for growth.

Moreover, some industries with strict certification requirements may find it more difficult to fully embrace skills-based hiring. In these cases, a hybrid approach that combines skills assessment with traditional qualifications may be more appropriate.

The Future of Hiring

As we look to the future, skills-based hiring is likely to become increasingly prevalent. The rapid pace of technological change means that the half-life of skills is shrinking, making continuous learning and adaptability more crucial than ever.

Organisations that embrace skills-based hiring will be better positioned to attract diverse talent, adapt to changing market needs, and build agile, high-performing teams. For job seekers, this shift presents an opportunity to showcase their abilities and potential, regardless of their formal qualifications or career history.

The move towards skills-based hiring represents more than just a change in recruitment practices; it’s a fundamental shift in how we view talent and potential. As we continue to navigate an ever-changing work landscape, the ability to identify, attract, and nurture skills will be a key differentiator for successful organisations.

In this new paradigm, the question is no longer just “What have you done?” but “What can you do?” It’s a subtle but powerful shift that has the potential to reshape the world of work for the better.

Written by:

Jools Barrow-Read

Founder

I’m Julie Barrow-Read, known to all as Jools, and I’m the founder of RedWizard. With a 20-year background in strategic... Read more

Connect on LinkedIn