The document discusses factors influencing the usage of contract talent, highlighting increased reliance during economic uncertainty and the need for flexibility and specialized skills. It emphasizes that businesses use contract workers to minimize costs and respond quickly to changing demands. Additionally, it notes the shift towards centralized management of contract talent through various tools and strategies.

1. What Influences Contract Talent Usage?
A Spring 2011 Research Report from
Human Capital Institute and Beeline
Tuesday, May, 24 2011
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2. Presenters
■ Meghan McVeigh, Program Manager, Workforce Mgmt
Public Service Enterprise Group
■ Beth Perdue, Vice President, Strategic Solutions, Beeline
■ Bill Craib, Vice President , Human Capital Institute
2 HCS Certification Course, V.3.0, 2010

3. About this research
One-on-one interviews with
senior practitioners from
Spring 134 • healthcare
2011 respondents • financial services
• professional services
Analyzed by:
Percentage of CT in the workforce
How far in advance CT needs are projected
If there is an EWCTP in place
Company size
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4. Keeping it temporary
“Despite a surge this year in
short-term hiring, many
American businesses are still
skittish about making those
jobs permanent, raising
concerns among workers and
some labor experts that
temporary employees will
become a larger, more
entrenched part of the work
force.” Motoko Rich, NY Times,
Dec. 2010
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5. Use of Contract Talent increased
during the recession...
■ Overall, 75% agreed that
CT is used more during
times of economic
uncertainty.
■ A significantly higher
percentage (87%) of those
respondents with more
than 5% of CT in their
workforce agreed with this
statement.
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6. Discussion Question:
■ Why does Contract Talent usage increase during times of
uncertainty?
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7. ...and will have a sustained
presence moving forward
■ What percentage of your current
workforce would you estimate to
be Contract Talent?
■ What percentage of your
workforce would you estimate to
be CT one year from now?
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8. Discussion Questions:
■ Is it inevitable that Contract Talent will continue to increase?
■ How does this impact the roles of the various stakeholders involved
in Contract Talent within organizations today?
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9. Why is Contract Talent being used more now?
“It is bringing in the technical skills necessary. It’s time to market “It’s cheaper to hire contingent workers, but also more flexible for
– sometimes bringing in full-time staff takes longer. It’s a longer employers. If someone decides, ‘We need to be this size,’ it’s far
decisioning process. If you can bring somebody in quickly who easier to do that with contract workers and temps."
can get your initiative or backlog done sooner, it’s a more agile
workforce that allows you to do more in a shorter period of time. Bill Kahnweiler
So time-to-market is a big deal.” Associate Professor
Department of Public Management and Policy
Cynthia Moore, Co-founder Georgia State University
VMS Professionals
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10. Key Influences to Contract Talent usage:
Flexibility to quickly expand workforce
Provides flexibility - able to quickly expand or contact our workforce
Need specialized skill not available in our workforce
Need experience that was not present in our workforce
Want to reduce benefit, insurance and health insurance costs
Want to reduce employment/payroll taxes
Lower wage cost
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11. The rate of change and planning
■ Because of the constant change of
business, its expansion and
contraction, contract talent allows
organizations to flex.
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12. Key Influences to Contract Talent usage:
Ability to access skills/experience not
currently available in their workforce
Provides flexibility - able to quickly expand or contact our workforce
Need specialized skill not available in our workforce
Need experience that was not present in our workforce
Want to reduce benefit, insurance and health insurance costs
Want to reduce employment/payroll taxes
“We don’t need a full-time person long-term, so we bring in top
contract labor, particularly when we have project activity, to
Lower wage cost
cover those ebbs and flows of the workload. It is usually a
particular skill in regards to the IT world, it’s something you know
you can find in the marketplace more easily and quickly than
trying to find an FTE.”
Sally Ballard
12 Regence Group

13. Discussion Question:
■ How do we make our Contract Talent programs better, even as they
get bigger?
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14. CT Management becoming
centralized and standardized
■ Increased use of Enterprise-Wide CT
Programs and CT Tools such as
Managed Service providers (MSP),
Vendor Management Systems (VMS)
and Independent Contractor
Engagement Specialists (ICES)
■ Each of these tools improve
capabilities to effectively manage CT
program and people
“...in terms of being able to scale services like contract services across the
organization, a Vendor Management System is critical to being able to do
that. There was a time here at H&R Block where things were more
decentralized. VMS helps from a reporting standpoint so that we understand
what is our volume and how we can negotiate with our vendors to get the
best prices.”
Kimberley McDonald, Director of Talent Acquisition
14 H&R Block

15. Discussion Question:
■ What aspects of Contract Talent as a talent management strategy
have the biggest impact?
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16. Benefits of EWCTP & CT Tools
Organizations with CT Tools Organizations with CT Tools
% Agree That CT Program has: % Agree That CT Program has:
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17. Conclusion
■ Final thoughts from panel
■ Your questions
■ Look for more best practices and case studies on Contract Talent
from HCI and Beeline in our series, Contingent Workforce in the
21st Century, on www.hci.org
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18. Thank You.
Further Questions?
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