Skill shortage, increasing labour costs and baby boomers are causing organisations to adopt newer hiring models. What used to be an exception, contingent workforce is slowly becoming the norm. Trevor Vas talks about an emerging trend of organisations adopting formal contingent working models in their quest to be more flexible (Read here). The Australian Bureau of Statistics reports that contingent workers make around 28% of today’s workforce. Keeping pace with this trend in the HR world, vendor management software has been evolving over the years. SAP Fieldglass, a cloud based Vendor Management System, is market leader in this space. Fieldglass is used in more than 100 countries and available in 16 languages.
So what makes up this workforce? A contingent workforce is a provisional group of workers who work for an organisation on a non-permanent basis, also known as freelancers, independent professionals, temporary contract workers, independent contractors or consultants (Wikipedia). What are the benefits of this flexible workforce? Apart from choice of work assignments and greater career control, they also have the benefit of setting own hours and rates.
When SAP acquired Fieldglass in 2014 it was in line with the other acquisitions namely Ariba and Successfactors. SuccessFactors has Contingent Workforce management functionality but is limited and hence the need to acquire Fieldglass. SAP has plans to integrate Fieldglass with its next generation products HANA and Fiori.
The following picture depicts the processes involved from sourcing the worker to payment. There are sub processes involved which help the users build an efficient workforce. SAP Fieldglass not only helps in simplifying the sourcing of the contingent workers and managing them, but also enables the data stored for further analysis.
(Source: SAP E-book)
The Fieldglass platform is based on J2EE architecture utilizing an n-tier approach. The application is delivered through a multi-tenant Software-as-a-Service model, hosted by Fieldglass.
So what do customers get by implementing Fieldglass VMS? Some of the benefits are:
- Cost savings
- Better visibility
- Ensure compliance – labour, tax, health and safety
- Source high quality candidates
Fieldglass and SAP
Fieldglass’s open integration framework helps in simplifying integration with SAP’s Ariba and Successfactors. There are more than 200 successful integrations between Fieldglass and SAP ERP.
(Source: SAP E-book)
Fieldglass and Successfactors
The Employee Central module of Successfactors has been enhanced with new features and functionalities to cater to the Contingent Workforce management processes. The processes of sourcing and managing the contingent workforce like timesheets, headcount reports etc. is well handled in Fieldglass. Employee Central helps in integrating the Fieldglass data into its contingent profiles via uploads. Once uploaded this data is searchable in the organisation directory.
Fieldglass and SAP HCM
Fieldglass can be also integrated with SAP’s ERP HCM system via standard connectors. In this scenario while the requisition and hiring happens on the Fieldglass platform, the position/job and organisation data needs to first flow in from the ERP system. The infotypes that can be maintained in the ERP system via the “Worker Download Connector” are: Actions (0000), Organisational Assignment (0001), Personal Data (0002), Working Time (0007), Contract Details (0016) and Purchasing Data (0901). Apart from the HCM data, other ERP data like cost centres, task codes, pay rates etc. are available for use in the connector. The connector is flexible enough to add any custom fields to support the business process.
With an increasing percentage of contingent workers comes the issues of rising costs, compliance risk, lower quality candidates, lower visibility and lower productivity. SAP Fieldglass is rightly positioned to help organisations overcome these hurdles. With its superior Software-as-a-Service (SaaS) offering, SAP Fieldglass provides 360 degree capabilities for managing the complexities associated with contingent workforce management.
SAP SuccessFactors Consultant