Source One's Temp Staffing Cost Management Experts help your company right-size requirements and support continuity of operations

Contingent Labor Sourcing

Strategic Sourcing for Contingent Workforce Management

Contingent Workforce Management & Strategic Sourcing

Source One provides a tailored suite of strategic sourcing services that deliver exceptional value while comprehensively addressing all your Contingent Labor cost reduction needs.

Contingent workforce management, and controlling the costs associated with it, can be a challenge to wrangle as the workforce continues to change. Non-employee workers have increased their presence in the workforce significantly over the past 10 years and will continue to grow in the future. By moving your organization to a total talent management program, utilizing a Managed Service Provider (MSP) or Vendor Management System (VMS), you can decrease the risks associated with a contingent workforce and drive value to your bottom line.

Common challenges in Contingent Workforce Management include:

  • Multiple agencies providing contingent labor services to your organization.
  • Multiple agreements with varying terms and conditions including decentralized mark-ups and inconsistent conversion fees.
  • Inability to identify contingent workers within your own walls.
  • Inability to track company assets and access to facilities/offices.
  • Hiring managers working with their favorite supplier to obtain talent, which can lead to cost increases.
  • Independent contractors working within your organization without properly being vetted as Independent Contractors.
  • Increasing risk of non-compliance with IRS due to misclassification.
  • Statement of work-based projects having scope creep due to lack of visibility into milestones and deliverables.
  • Invoices for SOW projects being paid without verifying completion of work.


Our Contingent Labor strategic sourcing and cost reduction experts will allow you to:

  • Analyze the contingent labor market to understand characteristics and identify roadblocks such as government labor regulations with independent contractors
  • Establish full visibility into spend across your enterprise for all aspects of contingent labor
  • Identify inefficiencies in sourcing methods and assist in streamlining talent acquisition
  • Leverage your total contingent workforce spend to drive decreased costs
  • Negotiate and improve contract terms, pricing models and rates with all temporary labor providers
  • Develop a best in class contingent workforce management program


Our industry expertise, in-house subject matter experts, and proprietary volumes of real-time market data combine to align a tailored contingent workforce solution to your needs and budget requirements. Source One’s contingent labor vendor cost reduction and strategic sourcing model is all-encompassing, flexible and scalable, which will allow your organization to reduce the overall costs allocated to temporary employee and Statement of Work services while securing favorable contract terms and performance levels, all while ensuring scope alignment from the staffing and consulting agencies.

In addition to contingent workforce management, you may want to consider looking at total talent management. Total talent management includes management of both your contingent workforce and direct hire recruitment. Direct hire recruitment can be managed through the use of Recruitment Process Outsourcing (RPO). RPO may involve strategic consulting for talent acquisition, sourcing for select department or skills or total outsourcing of the recruiting function.

While the contingent workforce is continuing to change and grow, through effective analysis and a strong management plan you can control costs, compliance and risk without compromising the quality or delivery of the services that are needed. Contact Source One’s Temp Labor reduction experts today to get started.

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HR Category Expertise

Specialized cost reduction expertise in the complex and previously off-limits Human Resources spend category

Temp Staffing Cost Reduction

Data Collection for Temp Labor

Data collection must be performed first to understand your current contingent workforce – speaking with all internal departments that utilize temporary labor or SOW based work, and each of the staffing agencies to request the fully executed agreements (if unavailable internally) and current usage reports to gain an accurate picture of the workforce. Included in this must be usage, pay rate, bill rate, mark-up percentages, overtime hours, overtime bill and pay rates.

Strategic Sourcing and Cost Reduction for Contingent Workforce Management

If the contingent labor spend for your organization is approximately $10M/year, working with a Managed Service Provider (MSP) and/or Vendor Management System (VMS) may be your best next step. To choose the best MSP for your organization, the following steps should be completed after data collection:

  • Develop and execute an RFP to assess the agencies capabilities and expertise
  • Analyze the agencies responses and score them, to assist in determining the partner with the best fit
  • Decide which pricing model is the best option for your organization
  • Determine the best sourcing option (vendor-neutral, master vendor, or blended model)
  • Create a cross functional team that includes all areas of the business that uses temporary workers or Statement of Work Agreements to work together with the MSP/VMS for the implementation of the program

Insurance and Benefits Cost Reduction

Source One’s proprietary market intelligence allows you access to the most-qualified and best-fit brokers/consultants. However, it is important to understand that those brokers/consultants will still have an imperative to sell the most expensive plans and options, within the bounds of practicality to your stated objectives. After all, the nature of any broker/consultant is often driven around maximizing employee adoption and increasing commissionable contracts.

Source One can help prepare you for this eventuality, arming you with strategies and techniques for managing your brokers/consultants. When it comes time to renegotiate your plans, you and your brokers/consultants will make the most well-balanced decision that secures your value, controls your costs, and minimizes your risk in the short- and long-term.

Benefits & Insurance Category Management Expertise