Here are 5 serious contingent workforce challenges you may have that will need to be fixed, to name just a few:
- Are you paying above fair market rates? Lack of visibility leads to waste. Many organizations don’t have a clear picture of fair market rates for a given category of worker. Better visibility on your current pay rates and the fair market rates for a given class of worker can lead to substantial savings.
- Do you take unnecessary risks? One of the most overlooked aspects of contingent workforce accounting is the lack of insight into the potential risks associated with various classes of contingent workers. This is particularly true of independent contractors. Greater visibility leads to better governance and compliance with federal, state, provincial and local regulations.
- Do you have poor company decision-making regarding your contingent workforce? Incorrect information can lead to bad decisions across multiple areas, including workforce rationalization. Businesses that gain full visibility on their contingent workforce pay rates can generate significant savings, often without reducing headcount.
- Do you have poor planning and forecasting? The cause of last-minute scrambles to fill key contingent labor positions on demand, fluctuates from season-to-season or project-to-project. This kind of poor planning leads to costlier sourcing options, like staffing vendors, to fill urgent and unplanned needs.
- Are your rates of pay inconsistent for your contingent workforce? It’s common to find organizations paying vastly different rates for the same category and level of resource from one department to another.
How to increase visibility into your contingent workforce
- Consolidate and centralize – Put information on all your contingent workers in one place, regardless of their type and source. Build a central repository that consolidates all the various types of non-permanent across your organization.
- Catalog, classify and validate – Create a comprehensive job catalogue of all non-permanent positions in your organization. Understand the nature of the work they do for you. Make sure they are properly classified and, if they are independent contractors, verify that they actually qualify to be classified as such. Not everyone who claims to be an IC is eligible to work as an IC.
- Document, educate, propagate – Success depends on managing change. Make sure your managers understand the value of centralizing the management of your contingent workforce. Demonstrate the positive impact on the business. Then roll out best practices across the various departments, divisions and locations.
How a Managed Services Program can help
We are a contingent workforce service provider helping organizations gain better access to talent through the use of independent contractors, consultants, temporary workers, freelancers and other non-payrolled employees. We provide the expertise, the technology, and processes to help you reduce your workforce costs, mitigate against misclassification and co-employment risks, and increase the efficiency and timeliness of your contingent recruitment process. Read more about what our clients say about us here.