This question is the same as: who is responsible for the liabilities linked to 7% of your revenue today? According to our research, most large organizations spend about 7% of revenue on contingent labor (i.e. contractor, temp,).

As you can see on the chart, today 33% of organizations are unclear about who owns it.

Another 19% believe it is the same as procuring pencils and the same people should hold the risk.

Optimizing contingent workforce management can often reduce spending by up to 22%, yet that is not the only issue of contingent labor procurement. Risk of co-employment, for instance, is significant (this is why the legal department is sometimes responsible for it).

Finally – as I believe it should be – 29% of organizations report HR owns it. They are I believe the key owner since they are used to dealing with legal issues, with people issues and can leverage centralized processes to optimize spending.

Note: the data provided here is from research we are about to release, based on in-depth interviews with 25 F500 companies.