While DE&I initiatives are often a focus in permanent workforce strategies, they are frequently overlooked in contingent labor programs. The temporary and short-term nature of contingent workers, coupled with limited visibility, often leads to a lack of attention to DE&I in this workforce segment. Since many contingent workers are sourced through staffing firms, an effective DE&I strategy for contingent labor begins by ensuring a diverse supplier network.
A diverse supplier is a business that is at least 51% owned, operated, and controlled by individuals from traditionally underrepresented groups, such as women, ethnic minorities, veterans, people with disabilities, and LGBTQ+ individuals. Partnering with diverse suppliers in contingent labor provides access to broader talent pools, often including candidates who bring unique perspectives and experiences.
With 85% of Fortune 500 companies adopting supplier diversity initiatives, integrating diverse suppliers into your contingent workforce strategy brings significant advantages that enhance both performance and impact.
Companies that prioritize DE&I from the top down tend to see the most successful outcomes. Buy-in from leadership ensures that diversity initiatives are integrated at every level, making supplier diversity a standard practice rather than an afterthought. Provide training for leadership, HR, and procurement teams on the value of supplier diversity and its alignment with overall business goals.
Conduct a diversity audit to identify representation gaps in your supplier base. Use Vendor Management Software (VMS) to track and report on both tier 1 and tier 2 suppliers, providing a comprehensive view of your diversity spend.
Identify and engage suppliers from underrepresented groups through industry events, supplier diversity coalitions, and partnerships with diversity organizations like the National Minority Supplier Development Council (NMSDC) or Women’s Business Enterprise National Council (WBENC).
Evaluate potential suppliers' DE&I commitments by reviewing their internal diversity policies and practices to ensure alignment with your company's values. Include diversity credentials or certifications in Requests for Proposals (RFPs) and make diversity requirements part of your contracts. Ask all suppliers to complete a business classification form, listing their diversity certifications (e.g., minority-owned, women-owned)
Establish clear, measurable goals for increasing spend with diverse suppliers or expanding their role in your contingent workforce. Hold internal stakeholders accountable for achieving these goals and celebrate milestones to highlight the positive impact of these initiatives.
Building a diverse supplier network is a crucial part of building a more inclusive contingent workforce strategy.
LevelUP's Contingent Workforce Management (CWM) solution offers a fully managed service for contingent talent acquisition, management, and payrolling. As an MBE-certified organization ourselves, we are strongly committed to upholding DE&I principles in every program we manage. Our CWM programs are powered by a diverse, high-performing supplier ecosystem, ensuring that our clients benefit from top-tier talent while advancing their DE&I commitments. We also deliver detailed reporting on diversity spend and compliance, ensuring clients can easily track progress and meet their supplier diversity objectives.