Aligning HR and Procurement for Contingent Workforce Success

Managing a contingent workforce requires, at the very least, alignment between HR and Procurement teams. With enterprise organisations often making contingent workforce decisions through cross-functional committees and multiple stakeholders, creating clear, unified frameworks is essential.

Here’s how to set your business up for success:

Setting Joint KPIs

Shared KPIs between HR and Procurement create common goals and enhance collaboration. These should reflect both talent quality and cost efficiency. Consider KPIs such as:

• Time-to-fill contingent roles: Reflecting responsiveness to business needs.

• Contractor satisfaction and retention: Ensuring quality talent engagement.

• Total cost of ownership (TCO): Balancing cost efficiency with talent outcomes.

Clearly defined and regularly reviewed KPIs maintain alignment and promote mutual accountability.

Developing Effective Communication Frameworks

Robust communication frameworks eliminate silos between HR and Procurement, ensuring transparency and shared understanding. Key steps include:

• Regular joint meetings: Scheduled checkpoints to review workforce planning, performance metrics, and upcoming projects.

• Unified reporting: Shared dashboards that capture essential data like spend, fulfilment timelines, contractor quality metrics, and satisfaction rates.

• Stakeholder engagement: Establishing clear points of contact and responsibilities to ensure streamlined communication.

A recent survey found that 78% of Australian enterprise organisations identified improved communication as a key driver in contingent workforce programme success.

Clear, consistent communication ensures both departments stay aligned on strategy and operational execution.

In this episode of Flexing Up you will hear how important stakeholder buyin is critical to a successful contingent workforce program:

Establishing Governance Models

Effective governance structures provide oversight, clear decision-making processes, and accountability. Essential elements include:

• Cross-functional steering committee: With representatives from HR, Procurement, and key business units, responsible for strategic oversight and resolving escalations.

• Standardised processes and policies: Documented, accessible procedures ensure consistency across teams and clarity in responsibilities.

• Regular governance reviews: Scheduled evaluations of programme effectiveness, compliance adherence, and strategic alignment.

Research indicates that companies with robust governance frameworks experience up to 30% better cost efficiency in their contingent workforce management. 

Implementing a structured governance model helps sustain long-term programme success, balancing talent quality with cost control.

Engaging Cross-Functional Stakeholders

Gaining stakeholder buy-in for new policies and programmes is critical. Here are several practical approaches:

• Early involvement: Include stakeholders in early discussions to shape the policies collaboratively.

• Clearly articulated benefits: Demonstrate how new initiatives directly support business objectives and stakeholder priorities.

• Pilot programmes: Implement smaller-scale pilots to showcase the benefits, gather feedback, and build momentum.

• Success storytelling: Use internal communications to highlight early wins and positive case studies.

Additional Best Practices for Cross-Functional Contingent Workforce Programs

Creating a successful contingent workforce programme that involves cross-functional teams requires additional best practices to ensure effectiveness and sustainability:

• Streamlined technology: Implement integrated Vendor Management Systems (VMS) and collaborative tools that enable seamless data sharing, automate workflows, and enhance reporting capabilities.

• Speed of transition: Develop clearly defined, achievable milestones to support smooth transitions to new systems, reducing potential disruptions and accelerating acceptance across all teams involved.

• Structured change management models: Adopt proven frameworks such as ADKAR (Awareness, Desire, Knowledge, Ability, Reinforcement) or Kotter’s 8-Step Change Model to systematically manage change processes, support stakeholders through transitions, and embed new behaviours sustainably.

• Continuous feedback loops: Establish regular feedback channels such as surveys, workshops, or informal check-ins, providing insights into stakeholder experiences and enabling agile adjustments.

• Training and capability building: Offer ongoing training and resources tailored to cross-functional teams, enhancing their capabilities to manage contingent workforce operations effectively.

• Benchmarking and continuous improvement: Regularly benchmark your programme's outcomes against industry standards and best practices, adapting and refining your approach to remain competitive and effective.

• Leveraging Predictive Analytics: Use advanced predictive analytics to anticipate contingent workforce needs, forecast talent supply and demand, and proactively address skills gaps. This can significantly boost responsiveness and strategic planning.
• Sustainability and ESG Integration: Incorporate Environmental, Social, and Governance (ESG) criteria into your contingent workforce programme. Enterprises increasingly consider ESG factors, aligning their talent strategies with corporate sustainability goals.

Here's some specific resources for cross functional teams:

Contingent Workforce Glossary of Terms

Contingent Workforce Programs - A Comparative Analysis

Aligning HR and Procurement is not just about effective management—it’s about creating strategic value through integrated decision-making. By setting joint KPIs, developing clear communication frameworks, and establishing robust governance, your organisation can achieve sustained contingent workforce success.