People2.0 finds enterprise contingent workforce decisions are fragmented

A new People2.0 survey of 700 senior HR and Procurement leaders across six countries finds that many enterprise organizations lack clear ownership of contingent workforce decisions. The gap is creating risks around cost control, compliance and visibility as contractors and freelancers take a bigger share of the workforce.

Why it matters: - Enterprise organizations are losing clarity over who owns contingent workforce decisions. - That fragmentation can weaken cost control, compliance, onboarding and visibility into workforce performance. - The issue grows more urgent as contractors, freelancers and temporary workers make up a larger share of enterprise labor.

What happened: - People2.0 released new global research based on a survey of 700 senior HR and Procurement decision-makers. - The study covered enterprise organizations in the US, Canada, the UK, the Netherlands, Australia and India. - One in four enterprise organizations lack full alignment between HR and Procurement on contingent workforce decisions. - 25% of organizations describe the relationship between HR and Procurement as only somewhat aligned or worse. - 39% say internal alignment is a major challenge in managing contingent labor.

The details: - Workforce Procurement, Talent Acquisition and HR now carry the most influence over contingent workforce decisions. - Between 55% and 58% of respondents rate each of those functions as having a high or primary role. - There is no clear consensus on who should lead. - 17% identify Workforce Procurement as the primary decision-maker. - Another 17% point to Talent Acquisition. - 16% name HR. - Finance and Legal also influence contingent workforce programs, adding more complexity. - 75% of respondents say contractors, freelancers and temporary workers account for at least 11% of their workforce. - 43% say contingent workers represent more than 20% of their workforce. - The State of Contingent Workforce Management Report, Enterprise Edition is available here. - People2.0 describes itself as a global provider of workforce compliance and payroll services for enterprises and talent suppliers.

Between the lines: - The core problem is not just more stakeholders. It is misaligned priorities. - HR and Talent Acquisition tend to focus on people, skills and experience. - Procurement tends to focus on cost, contracts and suppliers. - Matt Fryer, Regional Director EMEA at People2.0, said many organizations lack a centralized view of contingent labor and therefore do not have the data needed to manage it effectively. - Fryer said a growing model is a specialized management function that combines procurement, HR, recruitment and compliance in one centralized team. - Christie Heintz, Senior Program Director, Shared Services at People2.0, said the most successful enterprise programs have a dedicated internal team that owns the contingent labour function. - India shows the highest collaboration among HR, Procurement and Talent Acquisition, and the strongest HR-Procurement alignment among the six markets surveyed.

What's next: - Enterprises are likely to keep shifting toward more centralized contingent workforce management. - Organizations will need clearer ownership if they want better visibility, fewer compliance gaps and more consistent workforce strategy. - People2.0 says closer coordination between HR, Procurement and Talent Acquisition will be critical as reliance on contingent talent grows.