With a decade of experience in politics and policy on Capitol Hill, Johnson moved into the compensation field by joining the professional association. If you don't know, WordatWork is the preeminent certification entity in the compensation field. When you see all of those letter following the name of a comp person, it means that they mastered the curriculum and passed the test as administered by WorldatWork. Ryan builds the heart of its intellectual war chest.
In our conversations, Ryan and I stumbled into some interesting ground.
It's reasonably clear that organizations are pruning functions and people who can't be tied directly to the organization's core value. One way of describing the process is 'if it's repeatable, it will be outsourced.' Another view suggests that specialty companies can achieve cost effectiveness that is beyond the reach of companies that dabble in a niche. A third view is that global labor rates allow an arbitrage that creates competitive advantage.
No matter how you slice it, more and more energy is being devoted to the management of contracts with outside entities who deliver necessary but not strategic elements of a company's work. Outsourcing, as smart as it is in theory, is subject to the vagaries and relative shortage of competency in contract administration. Generally speaking, Western organizations are not so good at specifying, evaluating and managing external suppliers.
Still, the trend toward outsourcing is altering the landscape of work. As the type and quality of relationships between companies and people evolve, the role of the compensation professional is headed for change. In other settings (defense and large scale engineering), the evaluation of compensation is a normal part of contract admissions. Operations like the DCAA routinely evaluate and assess the compensation policies of large contractors.
It won't be a surprise to see some members of the compensation industry migrate into the management and administration of contracts in the supply chain.
Really, it will be the best part of evaluating where the actual savings are in a subcontract designed to outsource an internal function. Labor rates, efficiencies, trade secrets, automation and scale are the fundamental differences between suppliers. Being able to clearly validate a labor rate structure as a part of contract negotiation is liable to become a key element of managing outsourcing.
While Ryan and I just skirted through the topic, it was clear that it had his attention and that the professional association would be thinking about it in one way or another.
As part of John Sumser’s ongoing Top 100 Influencers project, in which the key influencers working in recruiting, staffing, HR, HCM and HR technology are identified and profiled, John shares additional perspectives and compelling insights from those who are profiled here in Salary.com HR Voice.
John Sumser is a member of the Salary.com Board of Directors as well as the founder and president of Two Color Hat, Inc. Contributions to Salary.com HR Voice and this Website reflect the opinions of the authors and are not an official opinion of Salary.com, Inc., or any of its subsidiary or affiliated entities.
Still, the trend toward outsourcing is altering the landscape of work. As the type and quality of relationships between companies and people evolve, the role of the compensation professional is headed for change. In other settings (defense and large scale engineering), the evaluation of compensation is a normal part of contract admissions. Operations like the DCAA routinely evaluate and assess the compensation policies of large contractors.
It won't be a surprise to see some members of the compensation industry migrate into the management and administration of contracts in the supply chain.
Really, it will be the best part of evaluating where the actual savings are in a subcontract designed to outsource an internal function. Labor rates, efficiencies, trade secrets, automation and scale are the fundamental differences between suppliers. Being able to clearly validate a labor rate structure as a part of contract negotiation is liable to become a key element of managing outsourcing.
While Ryan and I just skirted through the topic, it was clear that it had his attention and that the professional association would be thinking about it in one way or another.
As part of John Sumser’s ongoing Top 100 Influencers project, in which the key influencers working in recruiting, staffing, HR, HCM and HR technology are identified and profiled, John shares additional perspectives and compelling insights from those who are profiled here in Salary.com HR Voice.
John Sumser is a member of the Salary.com Board of Directors as well as the founder and president of Two Color Hat, Inc. Contributions to Salary.com HR Voice and this Website reflect the opinions of the authors and are not an official opinion of Salary.com, Inc., or any of its subsidiary or affiliated entities.
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