Sunk-Cost Fallacy - Getting Project Recruitment Right

Author4MAT Administrator

Complex engineering programs inevitably require skills and experience from an external source. 

Many clients rely on traditional methods to attract an external workforce for their projects via a Preferred Supplier List (PSL). Even when a change of approach is required to attract the right talent, there is a tendency to continue with an endeavor where money and time has been invested; even when costs outweigh the benefits of a new method. This, and the mindset of sticking with an 'it's what we've always done' approach can be considered a sunk-cost fallacy. 

A considerable part of a project's spend is on labour. In many cases it's the main cause for overspend. A 2022 report by Deloitte suggested that up to 30% of spending is on flexible staffing

As a project progresses towards its conclusion, there can be increased contractor attrition, and replacement challenges. These challenges may not be managed effectively by an inflexible PSL, where member agencies have their own approach, strategies, and level of commitment to supporting your project. 

Understandably, lack of visibility and control over individual agencies making up the PSL can be frustrating, especially as you can't change your approach to recruitment mid-program right? Well, that isn't the case.

TRS Workforce Solutions has been supporting engineering projects for over two decades. Our knowledge and expertise is unparalleled. We have a quick-to-deploy, simply to use solution; ONEMSP that can be introduced at any stage of a project, with zero capital cost.

ONEMSP is a project-specific solution that manages all contingent resource needs. We design, build, and operate resourcing campaigns, as well as fully manage the current agency supply chain. It comes with an enhanced agency supply chain, real-time reporting, and actionable insights. We provide a dedicated program lead as a single point of contact throughout the project life-cycle.

Did you know up to 40% of a project contingent workforce is typically supplied via and agency?

Get in touch to receive our ONEMSP introduction and see how it can benefit your project, even if you are half-way through completion.

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