Rogue recruiting spend has never been more understandable because the job market has never been hotter. In its most recent jobs report, the BLS reported 10.9 million open jobs across the U.S., a record-breaking number of opportunities despite a global pandemic.
With work piling up and teams overworked, hiring managers are desperate to fill their open positions. Right now it is especially hard to blame those who go outside approved talent vendor lists and self-source candidates from outside agencies, LinkedIn, or personal networks. The problem, however, is that these rogue efforts can quickly become a runaway cost with SOW (statement of work) contracts eating away at workforce budgets. In addition, compliance risks surge when small, unvetted vendors that lack the right legal capabilities, insurance, and processes are brought to the table.
Is the answer to stop well-meaning, stressed-out hiring managers from self-sourcing talent? Or, is the answer to help them? With Employment Enterprises’ corp-to-corp solution, you do both and gain a way to engage and mentor smaller, niche suppliers without the heavy work of expanding approved vendor lists.
How It Works
To avoid the high cost and minimize the employment risks of directly engaging contractors, Employment Enterprises’ Checks and Balances subsidiary directly engages pre-identified workers and, when appropriate, their suppliers. The administration of the contract labor–from HR tasks to onboarding and compliance–is handled entirely by the talent acquisition experts at Checks and Balances. It’s a way to consolidate the processing of all SOWs into one streamlined, compliant, cost-saving solution, and it comes with many benefits.
Happier Hiring Managers & the Resulting Productivity Boost
Many businesses find that they have to say no again and again to proactive hiring managers who identify candidates from unapproved vendor channels or are self-sourced. Frustration and, eventually, indifference can build and that is a serious challenge to morale and productivity.
Rather than saying no, a corp-to-corp solution through Checks and Balances is a compliant way to address the urgent talent needs of hiring managers and their teams without having to expand approved vendor lists and protocols.
A Boon to Diversity
An excellent way to expand supplier diversity spending is through vendors. Checks and Balances, as a women-owned business, is a diverse partner. That means every SOW processed through Checks and Balances can be counted toward diversity spend. Meanwhile, the business benefits from the expertise of a diversity-focused vendor with more than four decades of experience helping businesses compliantly leverage the best talent for the job. The detailed diversity and spend tracking built into the corp-to-corp solution also provides businesses with SOW-based analytics to verify diversity numbers and compliance requirements.
The majority of self-sourced candidates come from vendors that are too small to qualify for a preferred vendor list. Their size prevents them from having the hefty insurance, legal, and governance resources required to make the cut. However, by working through Checks and Balances, these smaller, niche vendors get first-hand training on what it takes to be a preferred supplier. That includes a best-in-class education on how all fulfillment processes are handled, from meeting compliance standards and addressing legal requirements to full-scale onboarding. By learning the ropes directly from a trusted provider, these small firms gain the expertise needed to thrive once they are large enough to become a direct vendor.
By leveraging small vendors and SOW work through Checks and Balances, businesses reduce their overall vendor and SOW provider count, maintaining compliance with approved spending limits. Checks and Balances will assess all SOW work, identify where rogue talent spending is costing the business too much, make necessary cuts, and create a streamlined list of the very best providers. The result is fewer vendors to manage and strategic cost containment.
Reduced Employment Risk
Compliance and misclassification can be a big cost for any enterprise. With the ever-expanding ways people want to work and businesses want to access talent, it’s critical to have experts analyzing and ensuring compliance. With Checks and Balances, businesses keep the highest compliance standards without having to sacrifice strong, niche talent sources.
Always a Way
In today’s challenging job market, businesses cannot afford to eliminate talent sources. But they also can’t allow non-stop rogue engagements in which spending and compliance go unchecked or untracked. With the corp-to-corp solution from Checks and Balances, any talent source or contractor can be compliantly and cost-effectively put to work. To learn more, visit our website.