SOW Arrangements For Contingent Workforces
Understanding where SOW management fits – the future of contingent workforce programmes
At its core SOW, arrangements are contracts which are created to be temporary. SOW arrangements are made for short or long projects which have a set end date in mind. This can be very crucial for the energy sector as many projects have set completion dates.
SOW arrangements are going to stick around, so we need to all try to make the process as enjoyable as possible, to help keep both parties excited to continue working together. Employees need to give the skilled worker some benefits which might not be contracted just as a show of good grace such as potential short break holidays.
On a longer project, Pangea advises employers to discuss with the employee when they would like to go on leave. Many contractors are hesitant to request leave while in a contract, and they appreciate being allowed to take a short break (for example, during the end of the year). This may include telling contractors in advance whether a stand-down period will be scheduled, for instance over the end of the year, so they can prepare around that.
- Inception and popularity/adoption in certain regions
SOW was traditionally project-based deliverable works that were only delivered by large consulting firms. An SOW is a contract that captures the work products, and services including, but limited to, the work activity and deliverables to be provided under a contract, or during a project timeline.In recent times, SOWs have additionally been utilised for the engagement of time-and-materials-based staff augmentation, where the service provider is compensated for the hours the individual worked rather than the results achieved. In such cases, the employer typically pays an hourly rate and there is no visibility on the margin charged and also no specific deliverable outcome (other than the successful completion of the project). In my experience, contingent employees’ primary two concerns are being paid reliably and timely and organising a new contract that commences promptly after the completion of their current contract. That’s why we recommend employers engage contingent workers via a supplier who pays regularly, and on time, preferably weekly.
- The details: Temporary Agency Workers vs SOW
In comparison to a typical Temp agency or Contingent Worker agreement which is billed per unit of time worked, billing for SOW arrangements is based upon agreed prices per deliverable and/ or milestone identified. SOW agreements give Contingent Workers buyers more leverage within Contractors’ assignments, they primarily focus on the satisfaction of their clients as the SOW outlines, and ultimately govern the definition of success against prescribed deliverables (if any). Originally, SOW engagements involve payment only on the satisfactory conclusion of a particular project or job. Sometimes, for larger quantities of work, milestone payments are made on the completion of phases in the overall project.
- The role of Hiring Managers, Consultancy firms and Managed Service Providers
When it comes to SOW arrangements, there will be various parties involved. There are many other different areas in recruitment and business which use SOW arrangements but these are just a few which will stand out the most. Some of these could include but are not limited to, Hiring Managers, Consultancy firms and managed service providers.
The hiring manager of a company will sometimes look towards SOW arrangements for contracted and temporary skilled workers.
Similar to the hiring manager, the consultancy firm will also be looking for sow arrangement workers. For example, an expert which on retainer will not always be needed so creating an SOW arrangement for the expert/skilled worker will be the best outcome.
Managed Service Providers:
Managed service providers, especially in recruitment will need to have SOW arrangements to create contracts for some of the temp workers.
Spending on SOW to unlock business management opportunities
Service of work agreements will be highly beneficial in trying to attract and retain top talent. Sometimes it’s the best thing to let a firm take over some of the responsibilities of employee search and contract creation, while the current business employees can get back to more pressing matter, such as the upcoming project.
– Typical SoW deliverables (for a plant staffing project)
The typical SoW Deliverable for a plant staffing project will include The deadline for the project. This will be how long the recruitment firm has to deliver the staffing project for the power plant. Another thing which could be a deliverable is the scope of the project, this will give the firm a good understanding of milestones and time frames on their end.
Writing an effective SOW
When writing an effective SOW arrangement is never easy, but if you are looking to create one and need to know the steps involved in making it stand out.
✔ Project objectives: Make sure you have outlined what the project will entail, the time, date, requirements etc.
✔ Scope of work: Both the employer and the employee must agree on the work statements and requirements outlined. The scope of work will be a much broader description of the project’s details.
✔ Place & time of execution: This will let the employee know crucial details about the work they are being contracted for.
✔ Milestones: Creating milestones can help give a great sense of achievement and motivation throughout the project.
✔ Tasks: This will be a much more detailed description, even some day-to-day tasks to be involved. Unlike the scope of work, this will give a clearer understanding of what each day will be like while working on the project.
✔ Schedule: Similar to the milestone and task the schedule is a key aspect of a project’s life cycle. A point to take into consideration is that agreements which are under retainer and services are trying to be delivered on an ongoing basis, the paperwork will be reduced and the schedule could be excluded altogether.
✔ Deliverables: You must include items in the contract such as what is due and when the deadline for the said task will be.
✔ Expected outcomes: This will include the client’s definition of the success of the project.
Special terms, conditions, and requirements: For most projects and businesses will have certain terms and conditions which they will like to include which will only really be relevant to that particular project.
✔ Closure: Make sure you finalise the deal with the outlined deliverable, sign offs and review. This will determine how it will be accepted.
Ways to attract the best talent through SOW procuring services
1. Define Your Purpose
Make sure that you define your purpose and intent inside the SOW agreement and contract. This way, by having full transparency you will be able to attract great talent and retain them.
2. Build A Positive Environment And Strong Culture
Building a positive environment for employees on an SOW agreement can be one of the many ways of differentiating yourself from other companies. This can mean the difference between an employee loving or disliking their day-to-day.
3. Build A Strong Reputation
Having a reputation and presence in your market can be a huge draw-in factor for so many employees looking to sign an SOW agreement.
4. Have Inspiring Leaders
Having a great team can go a long way to attracting the best talent for your team through SOW agreements. This can help talented individuals finish signing the SOW agreement contract.
Considerations/Angles/Incentives to attract the best contingent talent.
Some of the best ways to attract talent are by giving them things to look forwards to when working for your business. One benefit which we discussed which is a massive incentive for employees is flexible working. Whether this means having some work-from-home time, being able to take care of urgent personal matters or just taking a breather.
Some considerations would be to write up a compelling contract for the employee. A contract which has clear outlines of work, deadlines, benefits, milestones, the scope of work etc.
Follow these closing statements to suit your potential employee and you will find and retain the best talent!
Find out more about how we can attract top talent for your business
We have SOW specialists ready for consultations on any challenge your business is facing.