Rapidly rising in importance amid the talent shortage is contingent labor, workers that provide services to an organization such as independent contractors, freelancers and temporary staff, and are not on the payroll. Almost every company has contingent workers, and many are increasing the use of non-permanent labor while dedicating more spend to the HR category.

The trend of 2 out of 3 workers classified as contingent is expected to continue, and as this bucket of spend increases, it becomes a higher profile spend at your company. This is where sourcing and procurement leaders have an opportunity for more involvement and can bring a successful contingent labor/HR purchasing strategy to the table.

One of the most effective tools to have in your procurement strategy at this moment in time is a group purchasing organization (GPO). From hiring, employee retention and contingent labor, the HR procurement GPO contracts help you plan strategically and address the diverse needs of your staff and contractors. Contingent labor allows companies to be more flexible in the volatile market, and group purchasing introduces more agility and visibility.

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This article was first published on omniapartners.com