What is a Statement of Work? Tackling 3 frequently asked questions
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WHAT IS A STATEMENT OF WORK? TACKLING 3 FREQUENTLY ASKED QUESTIONS
You’re likely leveraging the expertise of a growing number of Service Procurement providers.
Analysts, IT specialists, Project Managers – an array of non-permanent expertise are vital to the smooth running of day-to-day operations.
While their contribution is critical, these individuals necessitate a workstream of their own; requiring dedicated teams to source the best value suppliers, negotiate terms of engagement, track milestones and deliverables and manage payment – all while remaining fully compliant.
As the number of contingent workers continue to climb across the globe, agile organisations will need to consider how to appropriately manage these contractors.
It’s an additional piece of an already complex talent management puzzle. Which is why, as part of our ‘Workforce Fundamentals’ series , our team are tackling a number of frequently asked questions when it comes to Statement of Work (SoW) agreements.
Making a Statement: What is Services Procurement and SoW?
A SoW agreement is a document that details project or engagement specific activities. This document can be applied across the range of non-permanent talent that organisations are increasingly incorporating into their operations, from the largest global consultancies to individual advisors.
It offers concrete confirmation of the who, what, when and how of contingent labour arrangements, such as the expected outcomes or deliverables, the agreed rate of renumeration and an overview of how the work will be executed.
With a SoW, the devil is in the detail. Dedicating additional time and resources to ensure expectations are outlined, key deadlines identified, and the scope of the project is understood by all parties can minimise the risk of misunderstanding or disputes down the line.
With active management, a SoW can drive better project outcomes, increase value from spend and maximise competitiveness, enabling an integrated and agile approach towards the management of your non-permanent population.
What are the benefits of managing a SoW?
Unlock access to top talent: The world of work is undeniably more complex. With a focus firmly on the future, leading organisations are enhancing their technological capabilities, undergoing large-scale change management projects or scaling their solutions to embed agility into their operations.
With a managed SoW, you can leverage an ecosystem of service providers, leaning into our talent networks to solve critical skills gaps. Engaged against defined deliverables, your organisation benefits from an injection of creativity, innovation and expertise, without committing to a permanent increase in headcount.
We share your ambition, sourcing the skills needed to support you on your journey.
You’re in the driving seat: With a Statement of Work in place, the organisation and supplier have determined an agreed outcome - or series of milestones - which must be reached as part of the project delivery.
Opting for an outcome-based SoW solution can help funds to go further. The overspend associated with missed deadlines, quality control and the cost of rework are mitigated or removed, with appropriate management by a third-party provider such as Hays overseeing a range of deliverables.
You’ll need the support and services of a wide range of contingent talent to create tomorrow’s vision, but with a managed SoW you pay for the outputs produced.
Reduce the risk: With a clear – and shared – understanding of the scope, deliverables and purpose of the project, organisations can reduce the risk, including disagreements over intellectual property or disguised employment law.
With the dedicated management of SoW arrangements in place, organisations can operate in the knowledge that the contingent talent they choose to engage won’t compromise their commitment to compliance.
Creating a competitive advantage, together: We’re facing a shortage of skills across all industries, geographies and job roles. Top talent can be more selective about their service portfolio, so it’s vital that companies consider how they can become a client of choice.
Clear and concise deliverables, a transparent timeframe for the project and timely payments can soothe the key concerns of contingent talent.
Dedicated implementation, management and oversight of your SoW agreements can improve not only results – but your organisation’s reputation.
Why should we hand over management of our SoW to Hays?
We believe in shared success.
For us, that means championing enablement and flexibility, as opposed to seeing Services Procurement simply as a cost to be controlled. Taking a more holistic approach allows us to deliver greater value to your organisation, simplifying and strengthening your end-to-end processes to facilitate more informed decision making.
We take the time to understand your current position and plans for the future, in addition to your technological capacity and capabilities. With an understanding of your ambition, we craft a solution that is tailored to your needs, with an unrelenting focus on how SoW management can make your organisation more successful.
Some clients prefer to rely on in-house resources to sign off the SoW document, before selecting and contracting an appropriate service provider to oversee activities related to resource tracking and payment validation. Others opt to outsource a broader set of responsibilities, including the deployment of a Vendor Management System to enable greater tracking and analysis capabilities when it comes to contingent talent. The scope and scale of our organisation means we can flex our services to suit your specific needs.
You adjust, we adapt – and together, we’ll engage and enable the people and businesses you need to succeed.
Let’s talk about your talent strategy.
You need a workforce strategy that evolves to match your unique ambitions.
With a well-managed Statement of Work, we’ll engage and enable the people you need to succeed.
We have a range of resources available to support you on our journey. Take a look at our SoW webpage for further information, read more from our experts, or get in touch with the team today.
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