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Integrate HR with Your Overall Business Strategy to Improve Business Results

It’s time that HR became part of the overall business strategy. In 2009 an Aberdeen study found that 60% of executives believed that the current state of the economy would increase the importance their organizations placed on Human Capital Management. In a time when business results are of utmost importance, and companies are increasingly seeking efficiencies, human resources can be the difference between success and failure.

Many companies are willing to admit that their most important resource is their people, but few are willing to put this belief in practice and fully integrate their Human Resources strategy with their business strategy. Aberdeen found that 54% of Best-in-Class organizations had aligned employee goals and development activities with business priorities in 2008. This amounts to only a small percentage of all companies; however it displays that aligning the human element with business goals results in overall success.

The good news is that this is changing. The 2009 Aberdeen HR Executive’s agenda report found that 75% of executives surveyed indicated that HR had become more or significantly more strategic over a two year period.

By the same study, Aberdeen found that that economic instability and uncertainty posed by the economic downturn were their biggest pressures for best in class HR executives. In order to overcome these pressures, HR executives need to align their Human capital management priorities with the overall business goals. The study found that Best-in-Class organizations implemented programs that aligned the workforce with organizational objectives. In order to do this, they must collaborate with business managers to understand business success criteria.

HR needs to integrate with business managers in order to determine the best HR strategy in order to have the necessary resources for strong business results. This includes full time hires, and contract and temporary workers. Contract and temporary workers are often highly skilled and can be useful to an organization when specific skills are needed for a particular project, but these skills will not be needed in the long term. During difficult economic times, this is one of the most effective ways for an organization to gain the necessary skills without compromising costs.

HR is one of the most important departments in the organization, because HR provides the human capital that the business rests upon. HR needs to be integrated into the overall business strategy so that businesses can acquire the full time and contract staff that they need.

For more information about how to implement an MSP as part of your Human Resources strategy, click here or contact:

Christina Fabugais
Marketing Manager
Contingent Workforce Solutions Inc.
Direct Phone:  416-642-9077
Toll Free:  1-866-837-8630 x9077
Email:  christina.fabugais@cwsolutions.ca

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The Importance of VMS and Contingent Workforce Analytics

The most expensive and most complex resource of any business is its people. Many factors affect human performance, and, as a result, the human dimension is generally considered difficult to measure in terms of efficiency and improvement. With visibility into their workers’ performance, however, companies can better manage their entire workflow process.

Companies often have very little insight into their contract employees; a segment of the human dimension that poses high risk with employment and tax law and usually accounts for organizations’ largest single line expense. Contingent workers currently account for approximately 25% of the workforce, and this number is expected to increase. Companies need to effectively manage this aspect of their human resources in order to succeed in today’s changing employment market. Workforce analytics give companies visibility into their contract workforce, allowing them to better manage workflow, productivity, and compliance.

A Vendor Management System (VMS) can provide companies with the workforce analytics that provide companies with insight into their contract workforce across the entire organization. With greater insight, companies can determine who is doing what, and how well they are doing it. This allows organizations to allocate resources, motivate workers, and better understand human-resource related costs.

There are four key components to an effective Workforce analytics program. These components are:

  • Interactive – Workforce Analytics must be used as a living tool with dynamic data that integrates with historical data, including exceptions and outliers.
  • Intelligent – Analytics programs should be predictive and provide enough context to not only answer questions, but also raise them.
  • Actionable – The data must generate realistic recommendations that guide management decisions toward cost savings and risk mitigation.
  • Motivational – Workforce Analysis should go beyond mere mandates and inspire employees to have a stake in best practices.[1]

Successful businesses always look forward and adjust their strategies to match the changing market. Implementing a VMS and a workforce analytics program is one way that companies can adapt and better manage their most complex and most important resource: their people.

[1] Leeby, Doug. Workforce Analytics: How to Define, Measure and Drive Productivity in Today’s Organization. http://www.sig.org/i4a/pages/index.cfm?pageid=5748

For more information about how you can benefit from a Vendor Management System, contact Christina Fabugais about SimplicityVMS

Christina Fabugais
Marketing Manager
Direct Phone:  416-642-9077
Toll Free:  1-866-837-8630 x9077
Email:  christina.fabugais@cwsolutions.ca

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Contract Work Rising, HR departments Need to Develop New Talent Management Strategies

Volatility in the economy drives companies to hire more contract workers, and this is a trend that has become apparent in the last few years. Recent news of the world economy slowing further will only cause this trend to increase. Companies need to consider their contingent workforce as part of their total talent strategy, because they can no longer afford to treat permanent and contract workers separately.

While the downturn in the economy has driven the increase in contingent labour, many workers are also choosing contract labour as an alternative to permanent work. Contract Labour gives individuals the freedom to determine their own work schedules, be their own boss, and pursue work that they find challenging and rewarding. For many, this is enticing.

While the increase in contract labour allows companies to be more agile and better cope with specific needs, it also presents management challenges. Companies need insight into their contract workforce so that they can manage costs, ensure compliance with employment and tax laws, and be sure they continue to hire quality performers.

Human Resources Executive Online recently published an article detailing how companies need to better manage their contract labour. The article also described how “In organizations where contract labor isn’t managed by HR, there likely will be some resistance to change”. However, the benefits of properly managing contract labour need to be emphasized. The article gave some advice about influencing key people to consider a different management approach, including:

  • Illustrate why it is important for HR to have control of all talent, whether that is due to demographic shifts or volume-hiring needs and to ensure workforce planning efforts align with business requirements.
  • Communicate the risk and rewards of not centralizing the contract workforce and how worker misclassification and improper budget alignment can be costly.
  • To ease the transition and get buy-in from stakeholders, help participants visualize the end result and how processes can come together to make using contract labor successful.
  • Make the connection between how optimizing all human potential — employees and contractors — can impact customer experience, sales and other business outcomes.
  • Take the time to update roles and responsibilities to gain visibility into how many contract workers are filling job descriptions that are actually full time jobs[1].

Today, contract labour is unavoidable. Workers are increasingly finding that contract work suits their lifestyle and turbulent economic times require companies to look for alternative staffing strategies. It is important that key people recognize the need to revamp their company’s HR department to meet today’s needs.

For more information about how we can help you better manage your Contract Labour, click here

[1] Orler, Elain. Human Resources Exectutive Online. http://www.hreonline.com/HRE/story.jsp?storyId=533340887

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2011 Recruitment Innovation Summit

Building out on the success of last year’s event, the Recruiter Networking Group (RNG) will be holding the 5th annual Recruitment Innovation Summit in Toronto.

The Recruitment Innovation Summit will focus on “what’s new” in recruitment, and will bring together leading Canadian Recruitment Experts and Innovators to share best practices and to network. Sessions will include: keynote addresses, expert panels and interactive learning streams. New this year will be the 2011 Recruitment Innovation Awards.

Register now for the most anticipated recruitment event of the year!

To become a sponsor of this unique event Click Here

Save the Date: October 26th-27th, 2011

Testimonials

“I attended with my full Talent Acquisition Management team. The topics were insightful and helped us measure
our success against others in the Corporate Recruiting space in Toronto. It was great to engage with other Recruiting Leaders to share and learn from one another.”
Marianne Crann, Director, Talent Strategy & Acquisition, Rogers Communications Inc.

“I have been to this Summit both as a speaker and as an attendee. Each year I find the topics relevant, insightful and impactful when it comes to effectively managing the recruitment function at Sun Life Financial.”
Paul Russ, Director, Talent Acquisition, Sun Life Financial

To read more testimonials Click Here

Use the Promotion code: RIS2011 to receive $200 off of the regular price.

Register here

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Referrals Lead; Social Media Thrives; Job Boards Survive as Hiring Source

Job boards are far from dead. For the second consecutive year, internal transfers and promotions were the primary source of hire. A quarter of the companies that have a contingent workforce have no idea how big it is. More than half the companies use social media exclusively or as a significant part of their direct sourcing programs.

And finally, and least surprising of all, referrals continue to be the leading source of external hires.

These are among the highlights of the 10th annual Source of Hire study by CareerXroads. Released today, the study reports the results of a survey of 36 large, “well-branded” but anonymous U.S. companies who cumulatively employ 1.32 million workers and hired not quite 133,000 employees in 2010.

This is the 10th year that Gerry Crispin and Mark Mehler have conducted the survey to see where companies source their hires. As has been the case from the beginning in 2001, referrals from employees, vendors, alumni, customers, and other sources was the leading source of external hires. Last year, the surveyed companies reported 27.5 percent of their external hires came from referrals. The percentage has fluctuated only modestly over the years.

What is somewhat surprising about the referrals is that 51.7 percent of the responding companies said that up to 20 percent of their referral hires come from sources other than employees. On the other hand, 45 percent of the respondents said ALL their referral hires were recommended by employees.

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As strong as that number continues to be, job boards in 2010 took a big leap into second place, with almost a quarter of all external hires being sourced there.Last year, 13.2 percent of external hires came from job boards, a percentage more in line with the historic data.

Monster and CareerBuilder were the leading suppliers of hires, with 88.9 percent of the responding companies reporting they made at least one hire from Monster alone. (The similar stat for CareerBuilder was 85.7 percent.)

In past years, corporate career sites occupied second place, as a source of external hires. However, Crispin and Mehler have regularly observed that candidates come to corporate sites often by clicking on job postings on job boards or search engines.

The current report makes the same point. “Career sites are critical but they are more likely to be the end point, not the beginning or middle,” write Crispin and Mehler. There’s a diagram in the report from Jobs2Web, which, they note, “helps to illustrate that the 18.8% hires attributed to company career sites very likely came from somewhere else.”

Getting a handle on the originating referral source is still a challenge for most companies in the survey. Two-thirds of them simply don’t track their search engine marketing or optimization efforts.

The picture is much the same when it comes to their social media efforts. Most companies are able to identify candidates sourced through LinkedIn, but half can’t when it comes to other social media sources, particularly Facebook and Twitter.

Nonetheless, 57.1 percent of the respondents reported that social media played an important part in their direct sourcing program. That was the percentage reporting they researched candidates on social networks. Asked to rank the impact of social media on various parts of their recruiting program, respondents said its influence was greatest on direct sourcing, college hiring, and on hiring from job boards.

The report contains dozens of other data points, including contingent worker hiring, RPO use, and talent community management. Even with the small number of companies reporting, the report is now a classic, identifying trends and offering pints of comparison for recruiters everywhere.

As Crispin and Mehler note, “The set of conclusions from our February, 2010 9th Annual SOH Report is still valid. The 2010 data presented here merely underlines the need to continue improving how we measure the interaction of multiple sources i.e. the channels of influence that result in a hire.”

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