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HCMWorks Insights

If You Have A Contingent Workforce, You’ll Need A Management Program

Posted by HCM Works on 12 Oct 2017

Many companies are comfortable with the concept of leveraging a contingent workforce; the benefits include - increased workforce flexibility, access to talent and specialized skills, and reduced costs for short- or long-term projects.

However, the contingent workforce is a complex and ever-changing ecosystem. It presents its own unique challenges; contingent workers are often managed by separate departments using different processes, multiple staffing vendors, inconsistent hiring approaches, and different price points.

Without a proper contingent labor management program, the results can be an inefficient, fragmented, and inconsistent management process. Such a disjointed effort to manage the labor force will increase costs, heighten compliance risks, increase the risk of errors, lower productivity, and possibly damage relationships with your entire workforce.

Outsource to a MSP

One solution is to outsource your contingent labor program to a managed service provider (MSP) for increased program effectiveness.

With a contingent workforce having such challenges and complex needs, the contingent workforce needs specialized attention and an understanding that greater expertise is needed.

With a streamlined and optimized outsourced contingent labor management solution, organizations can minimize the costs associated with the sourcing, payment, and management of their contingent workers. An MSP specializing in contingent workforce management, will create a holistic, performance-based portfolio of integrated services, based on your unique needs.

An MSP will analyze, design, or re-engineer your current program, optimize your supply-base management, find weaknesses, implement necessary changes, consult and recommend best practices, actively manage costs, and provide strategic oversight. By simplifying and optimizing your contingent labor management program, you will be able to minimize costs.

Better Labor Sourcing

Contingent labor spend can be significant to your bottom line. Part of contingent labor management is sourcing the right talent, at the right time, and at the right cost. An effective contingent management program will provide greater depth to your choices and insights, so you can avoid hiring mistakes.

Better Administrative Organization & Minimize Costs

A proper contingent labor management program will be centralized in one place, which will bring order, streamline efforts, and increase organization.

When your management of the program is as efficient as possible because everything is one place—such as payments, compliance, and other relevant data—you will reduce the risk of duplicating your efforts, making expensive administrative errors, and performing functions in a disorganized, poor way. This means you’ll minimize costs associated with managing your contingent workforce.

Greater Insight & Visibility

With an effective contingent labor management program, you can maximize worker efficiency by having access to relevant performance data. With this data, you’ll have the in-depth insights you need into worker productivity to make informed decisions.

You will be able to place the right workers where and when you need them most, see performance issues early so they can be rectified before it’s too late, and make better hiring decisions in the future.

When you need access to specialized talent but want increased flexibility, reduced costs, and lowered risks, the contingent workforce is ideal.

However, managing this new workforce is complex. When you outsource your contingent labor management to an MSP, you can simplify and optimize the processes of sourcing, managing, and paying your contingent workers, so you can minimize costs.

You’ll have the right processes, tools, and metrics required to effectively manage your contingent workforce. Better sourcing methods, better administrative organization, and increased visibility into the workforce will allow for greater efficiency, which in turn, will reduce spend.

Don’t let inefficient management processes cost your organization money. Engage an MSP to fully leverage the benefits of the contingent workforce.

Don't Have the Resources to Engage A Contingent Workforce MSP?

Tags: Managed Services Programs, Contingent Workforce

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