Contingent workforce is a term that refers to the external workers who are hired on a temporary or project-based basis by an organization. These workers can include freelancers, consultants, contractors, and gig workers. According to a report by SAP Fieldglass, contingent workers make up 44% of the total workforce spend in 2020, and this percentage is expected to grow in the future.
Managing a contingent workforce can be challenging for many organizations, as they need to ensure compliance, quality, visibility, and cost-effectiveness of their external talent. This is where SAP Fieldglass comes in. SAP Fieldglass is a cloud-based vendor management system (VMS) that helps organizations source, engage, and manage their external workforce and services providers.
In this blog post, we will explore the benefits and challenges of using SAP Fieldglass, and how it can help you achieve your business goals and objectives.
Benefits of Using SAP Fieldglass
SAP Fieldglass offers many benefits to users, such as:
- Improved visibility
- Increased efficiency
- Enhanced quality
- Reduced risk
Let’s look at each of these benefits in more detail.
Improved Visibility
One of the main benefits of using SAP Fieldglass is that it provides a centralized platform to track and monitor the performance, spend, and compliance of the external workforce across different locations, categories, and suppliers. Users can access real-time data and analytics to optimize their workforce strategy and make informed decisions.
For example, SAP Fieldglass can help you:
- Identify the best sources and channels to find and attract the external talent you need
- Compare the rates and performance of different suppliers and workers
- Monitor the status and progress of the projects and tasks assigned to the external workers
- Track the spend and budget of the external workforce and services
- Evaluate the return on investment (ROI) and value of the external workforce and services
Increased Efficiency
Another benefit of using SAP Fieldglass is that it automates and streamlines the end-to-end process of managing the external workforce, from requisition to payment. Users can reduce manual tasks, errors, and delays, and improve collaboration and communication with suppliers and workers.
For example, SAP Fieldglass can help you:
- Create and approve requisitions and contracts for the external workers and services
- Post and distribute the requisitions and contracts to the relevant suppliers and workers
- Receive and review the proposals and bids from the suppliers and workers
- Select and onboard the external workers and services
- Manage the timesheets, invoices, and payments of the external workers and services
Furthermore, SAP Fieldglass can also leverage the SAP Fieldglass open API framework to integrate with other SAP solutions and third-party systems, such as SAP S/4HANA, SAP SuccessFactors, SAP Master Data Integration, and SAP HANA Cloud Integration. This can help you synchronize and consolidate the data and processes of the external workforce and services with the rest of your business operations and functions.
Enhanced Quality
A third benefit of using SAP Fieldglass is that it helps you find and engage the best-fit talent for your business needs, by providing access to a global network of suppliers and workers, and enabling direct sourcing and talent pooling. Users can also evaluate and rate the quality and performance of the workers and suppliers, and use the feedback to improve future engagements.
For example, SAP Fieldglass can help you:
- Search and browse the profiles and portfolios of the external workers and suppliers
- Invite and communicate with the external workers and suppliers directly
- Create and manage your own talent pools of preferred external workers and suppliers
- Rate and review the external workers and suppliers based on their skills, experience, and outcomes
- Reward and retain the high-performing external workers and suppliers
Reduced Risk
A fourth benefit of using SAP Fieldglass is that it helps you ensure compliance with local and global regulations, policies, and contracts, by enforcing rules and validations, and providing audit trails and reports. Users can also mitigate the risk of misclassification, co-employment, and security breaches, by verifying the identity, credentials, and background of the workers, and managing their access to systems and data.
For example, SAP Fieldglass can help you:
- Define and apply the rules and validations for the external workers and suppliers, such as eligibility, rates, terms, and conditions
- Generate and store the documents and records of the external workers and suppliers, such as contracts, invoices, and payments
- Provide and access the reports and dashboards of the external workers and suppliers, such as compliance, performance, and spend
- Verify and validate the identity, credentials, and background of the external workers and suppliers, such as tax, insurance, and criminal records
- Control and revoke the access and permissions of the external workers and suppliers to the systems and data, such as email, network, and applications
Challenges of Using SAP Fieldglass
However, using SAP Fieldglass also comes with some challenges, such as:
- Change management
- Data quality
- Integration complexity
Let’s look at each of these challenges in more detail.
Change Management
One of the main challenges of using SAP Fieldglass is that it requires a change in the culture, processes, and roles of the organization, as well as the adoption of new technology and skills. Users need to overcome the resistance and inertia of the stakeholders, and provide adequate training and support to ensure a smooth transition and adoption.
For example, using SAP Fieldglass can involve:
- Aligning the vision and goals of the organization with the external workforce and services strategy
- Communicating and engaging the stakeholders and users of the external workforce and services, such as managers, employees, suppliers, and workers
- Defining and assigning the roles and responsibilities of the external workforce and services, such as sponsors, owners, administrators, and users
- Providing and facilitating the training and support of the external workforce and services, such as manuals, guides, webinars, and helpdesk
Data Quality
Another challenge of using SAP Fieldglass is that it depends on the quality and accuracy of the data that is entered and maintained in the system. Users need to ensure that the data is consistent, complete, and up-to-date, and avoid duplication and discrepancies. Users also need to ensure that the data is secure and compliant with the privacy and data protection laws and regulations.
For example, using SAP Fieldglass can involve:
- Establishing and following the standards and guidelines for the data of the external workforce and services, such as formats, fields, and values
- Validating and reconciling the data of the external workforce and services, such as rates, invoices, and payments
- Updating and refreshing the data of the external workforce and services, such as profiles, contracts, and timesheets
- Protecting and encrypting the data of the external workforce and services, such as personal, financial, and confidential information
Integration Complexity
A third challenge of using SAP Fieldglass is that it involves integrating with other systems and applications, which can be complex and challenging, as it involves different technologies, protocols, and standards. Users need to ensure that the integration is reliable, scalable, and flexible, and that it supports the business requirements and scenarios. Users also need to monitor and troubleshoot the integration issues and errors, and keep the integration up to date with the changes and updates of the systems and applications.
For example, using SAP Fieldglass can involve:
- Designing and developing the integration of the external workforce and services with the other systems and applications, such as ERP, HR, and CRM
- Testing and deploying the integration of the external workforce and services with the other systems and applications, such as staging, production, and backup
- Operating and maintaining the integration of the external workforce and services with the other systems and applications, such as performance, availability, and security
- Enhancing and upgrading the integration of the external workforce and services with the other systems and applications, such as features, functions, and versions
Conclusion
In conclusion, SAP Fieldglass is a powerful and versatile solution that can help organizations manage their contingent workforce effectively and efficiently. However, users also need to be aware of the challenges and best practices of using SAP Fieldglass, and leverage the available resources and support to overcome them. By doing so, users can maximize the benefits and value of SAP Fieldglass, and achieve their business goals and objectives.
