Contingent labor provides companies with increased flexibility, specialized skills, and reduced costs for short- or long-term projects.

However, the contingent workforce at your organization is a complex and ever-changing ecosystem. It presents its own unique challenges: contingent workers are often managed by separate departments using different processes, vendors, approaches, and price points.

Without proper contingent labor management, the result is an inefficient, fragmented, and inconsistent management process. Such a disjointed effort to management will increase costs, heighten compliance risks, increase the risk of error, lower productivity, and possibly damage relationships with great talent.

Outsource to a Managed Services Provider

Contingent labor management is often outsourced to a managed services provider (MSP) for increased effectiveness. With such complex needs, the contingent workforce needs specialized attention. Organizations understand 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. A MSP will create a holistic, performance-based portfolio of integrated services that is based on your unique needs.

A 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 can minimize costs.

Better 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 management program will provide greater depth to your choices, so you can avoid hiring mistakes. Compliance and risk management along with other factors will be analyzed. When you have the best people taking on your projects, you can reduce your labor costs. 

Better Administrative Organization

A labor management program will be centralized in one place, which will bring order, streamline efforts, and increase organization. When your management is as efficient as possible because everything is one place—such as payment, compliance, and other relevant data—you 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 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 can 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.

Minimize Costs through Effective Management

The use of contingent labor is on the rise. 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 a 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.

A strategic, integrated end-to-end management process is required when you hire a contingent workforce. Using contingent workers can greatly reduce your organization’s labor costs. However, without an effective management process, you won’t see huge cost savings.

Don’t let poor management processes cost your organization money. Engage a managed services provider today.