Contingent workforces are becoming more and more prominent and common place in a vast amount of industries and companies. Often organizations turn to independent contractors without a well thought out contingent workforce strategy in place. As time goes on the situation can become increasingly complex and difficult to manage. Having an informed strategy can help untangle the situation and should consider several factors.
If implemented correctly, a contingent workforce can have a multitude of benefits, from access to top talent, a fresh perspectives, and a non-static company with a rich and diverse background. Below are a handful of different factors to help your company create a successful contingent workforce program.
When implementing contingent workforce programs, companies can face a few hurdles that are avoidable if they are known and addressed early. Firstly, companies need to optimize and streamline their business processes to improve efficiencies. This will in-turn help develop and promote their human capital ecosystem.
One option is to work with a Managed Services Provider (MSP) who will help ensure transparency, track performance/metrics, mitigate risk and consolidate spend. Having a clearly structured MSP partnership allows companies to gain increased visibility into their contingent talent, generating more efficiencies.
Company demands can be in a constant state of flux, and certain projects may require more talent, and in some cases contingent workers can actually fill permanent roles. Having a contingent worker fill a permanent role seems paradoxical, but can reduce the spend on sourcing external candidates. Utilizing these contingent workers in longer positions can provide a more stable workforce state, boosting the return on investment on talent.
To allow for the best talent to be sourced, companies need to work with the right suppliers to fill the talent gaps. Having a reliable supplier network is even more critical at short notice. Engaging the right Managed Services Provider creates a direct route to high quality talent in large volumes, and ensuring your MSP is vendor neutral will help support the best solution, unique to your company.
Finding the perfect balance between the right quality at the right time and being compliant can be a challenge when recruiting contingent workers. Appropriate vetting and screening of talent, along with the background checks can take time. These processes need to be conducted by people who understand the intricacies and nuances of the local and national labor regulations, as failing to account for compliance can incur financial penalties.
Not factoring in cultural fit of contingent workers can be a slippery slope. Companies need to make sure contingent workers have sufficient onboarding to conduct their work and not neglect the needs of the workforce. It can sometimes be easy to forget that you’re dealing with people.
Taking these factors under consideration will set direction towards having a robust contingent workforce strategy, that allows for improved efficiencies, provides access to quality talent on-demand, and even unlocks operational cost savings.
At 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.