Microsoft is making big plans to reshape the way the company uses external workers. External workers are people who work outside of the company, so the idea is, do some of these jobs need the assistant of an outside worker?
It’s a common sense question, but keeping an eye on the thousands of contract workers can be a problem for a company such as Microsoft. Usually, contract workers sit right beside company workers, though it is easy to tell them apart due to the colors of their clothing.
The plan right now is to change the way Microsoft handles outside employees. According to a memo posted online by the software giant, it wants everyone to be managed under something it calls, “outsourced arrangements” where the company assigns specific projects to suppliers. These suppliers would then hire the right persons for the job and manage them as their own employees.
It would mean Microsoft would no longer have to keep tabs on all its contract workers since that job would be left up to the supplier.
Many times when a manager hires a contract worker, and this person has been brought into the internal team, they end up reporting to a Microsoft manager. The company no longer wants this to happen, and only time will tell if it pays off enough to make things better and easier.
“Under outsourced arrangements, Microsoft manages projects under a statement of work that is outcome- or deliverable-based and includes a well-defined end-to-end process, consistent key performance indicators and service level agreements. The supplier manages the day-to-day work of their employees,” says Microsoft Chief Procurement Officer Michael Simms.
This shift began when Microsoft chose to make a huge reorganization where several hundred workers were laid off. The company first told its suppliers about the new policy, and also point out that external workers will no longer be able to use Microsoft buildings for 6 months after 18 months of continuous access.
We’re guessing this has to do with security concerns.
Security concerns? Perhaps. But probably also has to do with IRS regulations regarding the definition of employee versus contractor. Microsoft is positioning themselves to avoid possible penalties and back taxes.