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HCMWorks Insights

Contingent Workforce Management Solution: How It Helps You Cut Costs

Posted by Julia Fournier on 16 Jul 2015

A contingent workforce management solution can allow you to fully leverage your entire workforce—your employees and contingent workers—while streamlining operations, reducing wasted time, and cutting costs.

All companies have unique processes for scheduling, tracking, managing, and paying their workers. Unfortunately, for most organizations, these processes are fragmented across many different departments. This fragmentation leads to miscommunication, extra administrative effort, duplication, wasted time, and a higher risk of error—especially when they’re handled manually.

To leverage your contingent workforce, you must ensure that the right workers with the appropriate skills are doing the right jobs at the lowest cost possible. This provides an optimal balance between labour and demand, which can give you a solid return on investment. But when your workforce management processes are disjointed, contingent workforce optimization can be both difficult and costly. You simply don’t have the data you need.

A contingent workforce management system can yield substantive cost-savings opportunities by optimizing supply and demand for all of your employees and contingent workers by streamlining your management processes and providing you with the valuable insights you need. By bringing together your workers, processes, and data in an integrated, automated way, you can enhance your management efforts and cut costs in the process. Here’s how.

Free Up Managers

A contingent workforce management solution can free up your managers from administrative tasks. When they spend less time in the office on employee attendance and time, they can work on increasing employee productivity, which will save you money on labour costs. A workforce management system can automate the cumbersome and time-consuming administrative tasks that waste your managers’ time, so they can focus on your workforce.

Save Time

When you merge the scheduling, paying, and management of your contingent workforce, you reduce your administrative costs significantly. Having one system that handles all of the tasks can streamline your processes and increase efficiencies. The time you save will equate to money saved.

Reduce Errors

When your company is managing its flexible workforce manually through multiple channels, such as the payroll department, your human resources department, and your managers, you’re at an increased risk of error. Having too many cooks in the kitchen is not only redundant and results in costly duplications, but it can create confusion and miscommunication. These problems can lead to payroll and other types of errors that cost your company money. By automating time and pay calculations, you can eliminate preventable errors and ensure that complex payment standards are being followed with precision.

Identify Best Practices

Having a flexible workforce management solution that allows you to store, monitor, compare, and assess workforce data can help you discovery new best practices that can be adopted across your company for big savings. Understanding the right labour mix for your company can provide the optimal balance of labour and demand.

Make Informed Decisions

You can easily evaluate the costs and productivity of your contingent workforce when you have real-time visibility. You’ll have the complete metrics and data you need to make informed decisions. Understanding if you should renew a worker’s contract or who would be best to hire for a new project can significantly increase productivity and reduce workforce costs. With more context and data in their hands, managers can make better decisions. They have the information they need to hire the right workers for a job and ensure that staffing is always at an optimal level for cost effectiveness and productivity.

Total Visibility

Unless you are using a workforce management solution, you can’t truly determine the effectiveness of your contingent workers, practices, or processes. When you invest in a workforce management solution, you can finally have total visibility into your workforce. You can improve quality, increase productivity and operational efficiency, and save time, all of which will lead to reduced costs.

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Tags: Workforce Management

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