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HCMWorks Insights

How Effective Is A Contingent Workforce Management Program?

Posted by Julia Fournier on 30 Jun 2017

To leverage your contingent workforce most effectively, you must first ensure that the right workers, with the appropriate skills, are doing the right jobs at the most competitive costs.

This will provide an optimal balance between labor supply and demand, which can give you the best return on investment. But when your workforce management processes are disjointed or not functioning efficiently, contingent workforce optimization can be both difficult, inefficient and costly.

A contingent workforce management program can allow you to fully leverage your entire workforce, your existing employees and contingent workers, while streamlining operations, reducing wasted time, and cutting costs, and give you the data and insight you need to make the best decisions.

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

A contingent workforce management program can yield substantive cost-savings opportunities by optimizing the supply and demand for all of your employees and contingent workers and streamlining your management processes to provide you with the valuable and key insights you need. Bringing together your workers, processes, and data in an integrated, automated process, can significantly enhance your management efforts and cut costs in the process.

Here are some of the benefits of a contingent workforce management program.

It Can Give You More Management Time

A contingent workforce management program can free up your managers from time consuming contingent workforce administrative tasks. When they spend less time in the office on employee attendance, contracts and time management, they can work on increasing employee productivity, which will save you money on labor costs.

A workforce management program can automate the cumbersome and time-consuming administrative tasks that waste your managers’ time, so they can focus more on improving workforce productivity.

Significant Savings in Administrative Time

When you create an efficient process for the scheduling, paying, and management of your contingent workforce, you will reduce your administrative costs significantly. Having one contingent management program in place that handles all of those admin tasks can streamline your processes and definitely increase overall business efficiencies. The time you save will equate to an ROI of money saved.

Fewer Administrative Errors

When your company is managing its flexible workforce manually through multiple channels, such as the payroll department, your human resources department and your line managers, are at an increased risk of making admin errors.

This equates to having too many cooks in the kitchen. It’s not only redundant, resulting in a costly duplication of processes, 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 – and no errors.

Identify And Implement Contingent Workforce Management Best Practices

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

Make Informed Decisions

You can easily evaluate the costs and productivity of your contingent workforce when you have real-time data and cross organization contingent workforce visibility.

You will have access to all the metrics and data you need to make informed and better workforce 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 will have all 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

Many organizations can’t truly determine the effectiveness of your contingent workers, practices, or processes. When you invest in a workforce management program, 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.

Exploring Your Contingent Workforce Ecosystem

About HCMWorks

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.

Tags: Contingent Workforce

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