The workforce is evolving swiftly. Both organizations and employees are leveraging technology and innovative workforce models to achieve greater flexibility and an enhanced lifestyle. In this article, we explore the top five essential insights into contingent workforce staffing. This knowledge will assist you in developing a contingent workforce management program that enhances your business's ROI.
Both skilled and unskilled workers are accepting flexible and contingent roles in what is becoming an increasingly “non-traditional” workforce. Contingent labor is providing huge benefits to organizations, allowing them to fill roles cost-effectively and quickly in what is now a hugely competitive industry. When managed correctly, contingent workers can save a business money, ensure they are more competitive in the job market and improve their access to top talent. Here are the top 5 things to know when managing a contingent workforce:
1 - The contingent workforce requires strategic management
When managing contingent workers it’s a huge mistake made by many businesses to just lump these workers in with regular permanent employees and manage them all the same way. This leads to compliance risk, a complete lack of visibility over contingent workers and poor insight into how staffing agencies are performing.
Contingent workforce management requires its own, highly-strategic approach. A company-wide program will ensure all hiring managers are using the same vendors, at the same rates to hire the contingent workers that truly help your business to grow. Without a strategic program, that’s also underpinned by a vendor management system (a point we will get to shortly), your business will suffer from rogue costs, compliance and vendor risk, as well as rogue spend that hurts your bottom line.
2 - There are both pros and cons of managing a contingent workforce
Contingent workers, or contractors, offer a range of benefits for today’s organization, from increased scalability to reduced labor costs. Some of the pros of contingent workers include:
- Staffing agencies offer faster hiring times than traditional routes.
- Reduced labor spend.
- Improved workforce quality
- The ability to easier fill skills gaps
- Improved scalability for peak demand or new projects.
While there are a range of pros that come with contingent workers, a mismanaged contingent workforce program can bring a range of cons for a business. These include:
- A lack of control and oversight of contingent workers.
- Potential misclassification of non-employee workers.
- Company culture can suffer if businesses rely on non-employee workers.
3 - Contingent workforce management requires technology
A vendor management system is key to the successful implementation and ongoing management of a contingent workforce program, ensuring organizations have visibility and control over their staffing agencies and contingent workers.
Businesses that try to manage a contingent workforce program without vendor management system technology suffer from inefficient operations, fragmented processes and no program standardization, which all lead to a complete lack of control and visibility over the program.
To learn more about what a VMS is and how it can help your business manage its contingent workforce, read our complete guide to what a vendor management system is.
4 - Contingent workers are crucial to today’s businesses
Even if your business isn’t making the most of contingent workers, there’s no doubt that your competitors are. This means not only are they saving money by only paying for workers on an as-needed basis (improving their bottom line), but they’re accessing high-quality talent that your organization is likely failing to source.
The contingent workforce is now essential to today’s organization, offering both highly in-demand skills such as IT or unskilled workers on an as-needed basis. Businesses that don’t take advantage of this workforce are likely being left behind.
5 - Staffing agencies play an important role in contingent workforce staffing
While contingent workers can be sourced directly through a direct sourcing program, staffing agencies are typically essential to most company’s contingent workforce program. Staffing agencies work on behalf of companies, and job seekers, to match talented temporary workers to the skills and experience required for a specific position.
Final Thoughts
Choosing the right staffing agency, and managing them correctly, is a crucial component of contingent workforce success. Organizations must make sure they partner with the right vendors, which help them fill the right roles, at the right time and at the right price point.
Learn more about the benefits of a VMS
Learn more about the Benefits of a VMS and what to look for when choosing the best VMS for your organization. Download our Free VMS Buyer's Guide here:
Discover the Power of Conexis VMS
Conexis VMS is purpose-built for organizations seeking to manage their contingent labor spend effectively. Here’s why we're the right choice:
- Fast Deployment: Get up and running in weeks, not months
- Transparent Pricing: Flexible pricing with no hidden costs
- White-Label Ready: Customize the platform with your brand
- Real-Time Insights: Make faster decisions with built-in analytics
- Audit-Ready Compliance: Store contracts, worker data, and rates in one secure hub
About Conexis VMS
Conexis is an award-winning Vendor Management System built for organizations that want the power of enterprise software without the complexity or cost.
Leveraging the latest technology, Conexis delivers the expertise, reliability and security of enterprise systems, while offering the flexibility, user friendliness and tailored, personal service you require. Learn more about our Company and why organizations Choose Conexis VMS.
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