Ever wondered why your organization is not getting a solid return on investment (ROI) from its contingent workforce? It’s probably because you are making some common mistakes when it comes to contingent workforce management.
Before we get into exactly how you can improve those management efforts, let’s first take a quick look at what exactly the contingent workforce is and the benefits it can offer your organization.
So, what is the contingent workforce?
The contingent workforce, which is part of the wider gig economy, has exploded in recent years. It’s is now believed that these contractors, freelancers and non-permanent workers make up around 30 per cent of the entire US workforce.
These workers can offer your company a wide range of benefits, from hiring on a project-by-project basis, rapid scalability, access to the best talent in your industry, creating an agile workforce and much more.
However, the management of a successful contingent workforce is complex. This management is often split between departments as well as HR and procurement teams, creating fragmented processes, inconsistent hiring, wasted administration time and extra costs.
Since you are still reading this blog it’s probably correct to assume that you are looking for ways to improve the management of your contingent workforce. HCMWorks has listed four best practices here that will help.
1 - Get external support
Unless your company has experience and expertise in the process of managing and hiring contingent workers, there’s no better way to improve the management of your contingent workforce than outsourcing, or at least getting advice, from a specialist.
By outsourcing your contingent workforce management to a managed services provider (MSP), you will have access to experts who can evaluate, redesign and streamline your current management processes to get the most out of your investment into contingent workers.
A specialist MSP will give you the access to the expertise needed to ensure your organization is meeting the latest government regulations, finding the best talent within your sector, properly organizing your payment and compliance and providing a more enjoyable place to work for your non-permanent workers.
2 - Make sure you are vendor neutral
If you decide to outsource your contingent workforce management to an external expert, make sure that they are a vendor-neutral company.
Traditional MSPs were also staffing providers, meaning it was difficult to keep tabs on whether they were actually putting the interest of your company first or they were simply favouring themselves or particular staffing firms over others.
This conflict of interest would leave companies missing out on top targets, and largely seeing no real benefit from their contingent workforce program.
However, some MSPs are now turning to the vendor-neutral model, in which they offer a neutral service when it comes to staffing companies. This model puts your business first and ensures that you are fulfilling staffing requirements with the best available talent at the most competitive prices.
3 - Reshape and reorganize your company’s processes
Implementing a successful contingent management program isn’t as easy as just throwing it at your various departments and hoping for the best. In fact, it’s essential that you create a detailed plan that brings all departments into one centralized philosophy.
The main issue you want to avoid is allowing your various departments to create their own management techniques for the contingent workers that work under their department. This creates a fragmented approach and leads to inconsistent paying techniques and time-consuming administration.
An effective contingent management program should be centralized in one place. This prevents dysfunctional techniques and allows for the seamless and efficient administration of things such as payment, compliance and worker analysis.
4 - Make the most of innovative technology
The point of a centralized process bring us to our last point - making the most of innovative technologies that will automate the way you manage your contingent workforce.
A vendor management system (VMS) is a cloud-based system that acts as a central hub for the entire management of your organization’s contingent workforce. This gives you clear visibility into your entire non-permanent workforce, from contracts, expenses, time logs, performance reviews, payments and remunerations, compliance, onboarding and much more.
With the information of your old, current and potential non-permanent workers all saved in one database, your company will have the data and tools needed for rapid scalability, long-term growth and revenue growth.
Want to learn how HCMWorks can optimize your contingent workforce management program and ensure you are maximizing your ROI? Contact our team of experts today to find out more.