2020, the start of a new year and a new decade, presents an ideal time for reflection and planning. Managers and executive teams will begin to look at where they want to be by 2030, looking at how they can optimize their workforce to achieve their growth targets in their 5 and 10-year plan.
Creating a plan for the future will include analyzing their existing contingent workforce program.
The contingent workforce is evolving and will become an essential asset for any company looking to grow over the next decade. That’s why 83 percent of executives plan to increase their use of contingent, intermittent and consultant workers over the next three years, according to the Workforce 2020 survey from Oxford Economics.
Many large companies, however, are ignoring the benefits that the contingent workforce brings. These companies are focusing on their own HR teams and hiring permanent workers in a bid to meet their workforce demands.
A shortage in skilled workers, combined with the changing way of work that’s now focused on more project-based tasks, has made the process of organization-wide permanent hiring a strategy of the past.
Don’t get us wrong, permanent employees are incredibly important for the success of your organization. However, combining this strategy with a successful contingent workforce management program gives your company access to highly-qualified workers, improved flexibility to meet client demands, the ability to create an agile workplace and many other benefits.
If your company is pushing back against the ever-growing contingent workforce, it’s more than likely down to the many misconceptions about non-permanent workers.
HCMWorks has listed the four most common contingent workforce misconceptions that we hear on a regular basis, and why they should absolutely not deter your organization from making the most of this highly beneficial workforce.
1 - There’s no consistency in the quality of contingent workers
A large number of companies refuse to use contingent workers as they believe there’s no consistency in the quality of candidates. This couldn’t be further from the truth. The contingent workforce will actually give your company the ability to select the best candidate for the project that you need completing.
In partnership with a staffing vendor, and the creation of an effective vendor compliance program, your organization will be able to select non-permanent workers based on their skill sets and expertise. This will help you to complete high-quality work for the clients you serve.
2 - Use of the contingent workforce results in rogue spend
Are you turning away from the contingent workforce because you’ve heard nightmares from other companies in regards to rogue spend? It’s true that the contingent workforce can result in wasted spend and inefficient processes within your company, but only when managed incorrectly.
When a contingent workforce management program is implemented successfully, however, you’ll have complete visibility and control over how much your organization is spending and what workers you need to achieve your targets.
3 - I can’t access the skills I need through contingent workers
This is a common complaint that we hear about the contingent workforce, but the truth is quite the opposite. The contingent workforce gives your organization access to highly-skilled and qualified workers.
In fact, with workers now having an ever-growing list of companies that they can choose to work with, many skilled workers are actively seeking contingent work. That’s why the contingent workforce is one of the best ways to beat the shortage in skilled workers within your industry. You’ll have access to highly-qualified workers that you simply wouldn’t be able to hire on a permanent basis.
4 - Managing a contingent workforce program is too difficult
It’s true, managing a contingent workforce program is complex. It takes specialized expertise and specific contingent workforce knowledge to implement successfully. Failure to do so will result in rogue spending, wasted time and inefficient hiring practices.
That’s why when implementing a contingent workforce management program, you should turn to the help of a managed services provider (MSP). An MSP will help your company to find the right resources to fill talent gaps, while at the same time ensuring you are able to successfully navigate the financial, legal and administrative challenges that come with non-permanent workers.
Do you want more information about how HCMWorks can modernize your contingent workforce program, and help you achieve your workforce targets? Contact us today. Our team of experts would love to answer your questions.