Why Your Procurement-Led Temp Strategy Could Kill Your Talent Pipeline

November 6, 2024

Organisations clinging to procurement-led temporary workforce strategies are facing a critical crossroads. While procurement departments have traditionally excelled at managing supplier costs and contracts, this single-function approach is increasingly putting companies at a competitive disadvantage in the quest for talent.

The Hidden Costs of Traditional Temp Management

Many organisations are discovering the limitations of procurement-led temporary workforce programs:

  • Rigid processes that prioritise cost over speed-to-hire
  • Disconnect between procurement metrics and actual business outcomes
  • Cultural misalignment when HR isn’t involved from the start
  • Technology gaps from late IT engagement
  • Missed opportunities for strategic talent development

Beyond Traditional Boundaries

While the historical approach of procurement-led programmes brought necessary cost control and supplier management rigour, this single-function approach has created significant operational blindspots. Departments frequently find themselves navigating processes that, while efficient from a procurement perspective, create friction in daily operations. HR teams struggle to maintain consistent culture and engagement across their total workforce, while IT departments, brought in too late, scramble to provide adequate technical infrastructure.

The Shifting Talent Landscape

The rise of remote work and evolving workforce expectations have fundamentally changed how organisations must approach temporary talent. Leading companies are recognising that:

  • Traditional boundaries between permanent and temporary workforces are blurring
  • Skills-based hiring is replacing traditional role-based approaches
  • Technology integration is crucial for workforce effectiveness
  • Supplier partnerships extend beyond traditional staffing relationships

Building Effective Collaboration Through Centers of Excellence

Our experience helping organisations transform their temporary workforce management has revealed a powerful solution: the Temporary Workforce Centre of Excellence (CoE). This innovative approach breaks down traditional silos by:

  • Bringing together HR, Procurement, Operations, and IT in regular strategic planning
  • Including top strategic suppliers in programme governance
  • Creating clear pathways for innovation and improvement
  • Facilitating cross-functional decision-making

The Cost of Inaction

Organisations that maintain traditional procurement-led approaches risk:

  • Losing access to premium temporary talent pools
  • Falling behind in workforce innovation
  • Missing opportunities for strategic talent development
  • Creating unnecessary friction in hybrid workforce models

The future of work demands a fundamental shift in how organisations manage their total workforce. Those who successfully break down the barriers between permanent and temporary talent management will gain significant competitive advantages in their ability to attract, deploy, and retain talent in all its forms.

The journey begins with recognising that effective temporary workforce management requires more than procurement excellence – it demands a holistic approach that brings together all stakeholders in service of broader talent objectives. Organisations that make this shift now will be better positioned to build the agile, responsive workforce needed to thrive in an increasingly competitive market.

Is your organization ready to transform its approach to temporary workforce management? Consider these questions:

  • How effectively do your HR and Procurement teams collaborate on temporary workforce strategy?
  • Does your current approach support or hinder rapid access to critical skills?
  • Are your temporary workers fully integrated into your technology infrastructure?
  • Can your programme scale to meet sudden changes in business demands?

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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