The hidden cost of hiring: why internal policies might be your biggest risk

Not every workforce strategy is intentional. Some of the biggest financial leaks in large organizations come not from poor execution, but from well-meaning internal policies that backfire. 

At the upcoming Global Talent Strategy & Intelligence Conference, Anthony Holly will offer a sharp look into the realities of contingent workforce management. With more than a decade of experience advising multinational organizations, Holly’s perspective blends behavioural science, data intelligence and pragmatic execution. 

From staffing to statement of work

“We see companies limiting contingent workers to twelve months, only to bring back the exact same person through a different service model. They end up paying twice as much for the same output.” 

That shift typically moves workers from standard staffing models to so-called statement of work contracts, agreements with external consulting firms. While appropriate in some cases, Holly warns they are increasingly used to bypass internal hiring rules. The result is higher markups, less transparency and a significant loss of control. 

Hidden costs and loss of control 

In the United States alone, average markups on statement of work engagements reach seventy percent or more. In extreme cases, Holly has seen companies pay one hundred to three hundred percent markups to re-engage the same person they previously hired through a staffing channel. 

 

Anthony Holly
Anthony Holly

"If you are paying someone one hundred dollars per hour under staffing, and now you are paying two hundred for the same person under a statement of work, that is a sixty dollar loss per hour. Multiply that across thousands of hours and it becomes millions." 

Not bad intent, just bad incentives 

According to Holly, this often has nothing to do with bad intentions. “The manager just wants to get their best person back. But the only way to do that within policy is to go through a more expensive route. It is not their money. So they do it.” 

The solution: rethink policy and track data

What is the solution? Rethink policies in light of actual impact. Use data to track cost per worker across all service lines. And have honest conversations about flexibility, exceptions and business priorities. 

Holly will cover this topic in depth at the Global Talent Strategy & Intelligence Conference in Amsterdam this September, where he will share how data-driven insights can challenge outdated assumptions and help companies avoid costly blind spots

YouTube Thumbnail

Stay informed about new episodes from the Global Talent Strategy & Intelligence Show

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
GDPR*
GDPR