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Phantom Workforce
The Phantom Workforce is also referred to as the Shadow Workforce, Invisible Workforce, Dummy Workforce, Transparent Workforce, and Hidden Workforce – many names for the same problem.
Senior executives, especially Human Resources and Procurement executives, are becoming aware of their significant problem with undocumented / unapproved contingent workers – especially retirees going out the front door and coming back through the back door as independent consultants.
Management doesn't know who they are, what they are doing, how many there are, how to control them, or their level of risk of liability for employee benefits or potential loss of institutional knowledge. Often the size is very large and out of control. If unchecked, the hidden workforce, its associated costs, and risks will only grow.
Using APC’s CLASS process (Contingent Labor Assessment, Standardization, and Sustainability), these shadow workers, whether independent consultants, professionals from large consulting firms, contractors, temporaries, or non-employees are identified , quantified, and documented for senior management to assess their current need. Only that which can be identified is manageable.
CLASS benefits:
- Visibility - Identify where are the contractors and what do they do
- Cost - Ensure costs are aligned with value and market conditions
- Continuity - Assess which contractors are crucial to business
- Value - Ensure sustained value is maintained YOY
APC’s CLASS process can evaluate the job being performed by the contingent worker to assess the proper match between cost and value of skills required.
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