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HCMWorks Insights

4 Ways to Improve the Performance of Your Contingent Workforce

Posted by HCM Works on 25 Jul 2019

With an estimated 30-40 percent of the US workforce now making up what we call the contingent workforce, large organizations must now shift their talent acquisition and workforce management strategies if they are to meet workforce targets.

These contingent workers, which are made up of freelancers, contractors, consultants and temporary workers, offer a wide range of benefits for your company, including:

  1. Filling workforce gaps in a market facing a shortage of skilled workers.
  2. The ability to assess your company’s workforce needs on an ongoing basis.
  3. Faster and more cost-effective hiring processes.
  4. Increased flexibility and the adaptability to scale your company’s workforce depending on demand.
  5. Trial new full-time positions or staff members.
  6. The option to bring in fresh perspectives on a frequent basis.
  7. And much more!

As we covered in a previous blog, titled ‘How Technology and Communication Tools have Fueled the Gig Economy’, advances in digital communication technology have made it easier to build a workforce that makes use of remote workers.

This growing trend has allowed organizations to create a more flexible, agile and project-based workforce, while also empowering workers to work in a way that suits their individual lifestyle.

One area that needs to be addressed, however, is how your company measures contingent worker performance - and how productivity can be improved. This will ensure your company is seeing an optimum return on investment (ROI) and that remote workers are doing their job effectively.

To help improve the performance of your contingent workers, HCMWorks has created four key tips to get you started:

1 - Improve visibility and control of your non-permanent workers

Technology should be fundamental to your contingent workforce management strategy. Companies who still use manual processes and outdated automation tools to manage their workforce will be left behind by their competitors.

A vendor management system (VMS) is a central database that uses cloud or SaaS technology to record data for your contingent workforce. This helps your company to manage its contingent workforce, from procuring workers, paying them, onboarding and much more.

Most importantly, the implementation of a VMS will give your organization complete visibility and control over your contingent workers. By having a central database that records every piece of data about your non-permanent workers, your company will have a clear understanding of the work all your contractors do for you - and whether it’s driving growth for your business or not.

2 - Use technology to record performance data

A VMS is also important when it comes to recording the performance data of your contingent workers. By using data linked to project-specific outcomes and goals, your company will have complete clarity into what workers are performing well and those that aren’t.

This data will show your company a contractor’s level of achievement, while also allowing you to provide data to your staffing vendors to ensure you’re getting the best return on investment in the future.

3 - Minimize worker turnover

The contingent workforce is based on temporary work, but that doesn’t mean you can just completely forget about a non-permanent worker once they have finished their product. In fact, it’s highly beneficial for your company to create partnerships with contingent workers.

By creating a partnership with each individual worker, not only will you be ensuring that the best talents are available to work for you but you’ll also ensure that those workers are passionate about the projects they work on and eager to help your company achieve its goals.

4 - Engage with an outsourced MSP

While each of these tips may sound simple in their own right, implementing a successful contingent workforce management program is actually incredibly complex - even for the most experienced of large enterprises.

Managing a non-permanent workforce requires complete unity, visibility and insight across your entire organization, and it’s unlikely that your business has either the expertise or resources to do this.

The use of a managed services provider (MSP) which specializes in the contingent workforce, will provide your business with expertise that improves visibility and control for your external talent strategy - ensuring you hire the top talent in your industry and that those temporary workers have the tools they need to be efficient and productive.

Want to learn more about how you can improve your contingent workforce management strategy and, in return, improve the productivity of your non-permanent workers? Contact HCMWorks today and find out how we can implement a world-class external talent management strategy, specifically designed for the unique needs of your company.

Human Capital Management Trends

Tags: Managed Services Programs

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