Contingent Workforce Management
18 March 2022

4 Contingent Workforce Management Best Practices to Drive Success

2 min read

A contingent worker is a temporary member of a business that is not hired on a permanent employment contract. These workers, which include temps, freelancers, contractors, self-employed individuals and consultants, are typically engaged for either a specific period of time or hired to complete a specific project. 

Does your organization make use of contingent workers to increase business agility and better achieve workforce targets?

If so, you’ll know just how important contingent workforce management is. 

While the contingent workforce brings businesses a huge number of benefits, it can also introduce more problems and risk into an organization when the program is managed incorrectly.

That’s why in this blog we’re going to take a look at some of the most important contingent workforce best practices your organization needs to know. Before we get into that, let’s first take a look at what contingent workforce management actually is.

2022 Contingent Workforce Trends

What do you mean by contingent workforce management?

Contingent workforce management. Three words that usually send business executives running for the hills. It’s complex, time-consuming and scary, but when implemented properly is hugely beneficial.

When you manage your contingent workforce properly, your business will be able to:

  • mitigate risks within your contingent workforce program;
  • improve the quality of contingent workers;
  • reduce costs;
  • optimize the management of your staffing agencies;
  • and gain complete visibility and control over your non-employee workforce.

Contingent workforce management is a strategic program that aims to improve how you manage every step within your contingent workforce. This program needs to be designed, planned and implemented around the specific goals of your organization.

When an effective contingent workforce management program is implemented, the full benefits of externally-sourced workers can be realized.

Contingent workforce management best practices

  • Mandate business-wide processes and rates

A contingent workforce management program cannot be successful if hiring managers across different departments are engaging staffing agencies using their own policies and their own rates - and not saving this data anywhere. 

To align your entire organization with your contingent workforce management strategy, you need to centralize the program in one place. This will allow you to standardize processes, standardize rates and ensure your entire business is singing from the same hymn sheet.

  • Invest in a vendor management system

Successful contingent workforce management relies on program insights and visibility. Your business simply cannot get the required data and insights if it manages its contingent workforce program on manual spreadsheets.

A Vendor Management System (VMS) will give your business complete visibility, and control, over its entire contingent workforce program. This will give you the insights you need to achieve greater cost savings, improve program efficiencies, enforce compliance and better manage your staffing agencies.  

  • Partner with a contingent workforce management expert

Worried that you don’t have the resources, time or contingent expertise to design, plan and implement your own contingent workforce management program? Most companies don’t. That’s why we always recommend that businesses partner with a contingent workforce Managed Services Provider (MSP).

No matter your contingent workforce volume, an MSP will be able to design a program built strategically for your organization's needs. Not only that, but they’ll manage it for you, taking the burden and complexity of contingent workforce management off of your company’s plate - all while saving you money!

  • Make sure your contingent worker are being classified properly

It’s important that contingent workers are managed differently to traditional employees, and that they aren’t misclassified as such. Contingent workers should not be on the company payroll and hired only for a specific period of time or for a specific project. Some consistent workers are also not entitled to the same benefits that employees are entitled to, although others are (such as those sourced through a staffing agency).

A contingent workforce management program will ensure that you are classifying all of your contingent workers correctly.

Want to learn more about building a contingent workforce management program? Contrax has a range of services designed to help businesses better, and more strategically, manage their contingent workforce and staffing agencies. Get in touch with us today to discuss your company’s goals. 

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