Contingent workforce management programs: these are potentially your greatest risk-management asset if you have contingent labour in your business.
Last week, we looked at the multiple risks associated with engaging contingent workers. These risks are typically heightened or become a reality in the situation where the organisation doesn’t have a strategic contingent workforce management program in place.
But when the organisation DOES deploy a centralised contingent workforce engagement and management plan, one that provides transparency, real-time reporting and related data on all facets of the contingent worker population, risks to the organisation are significantly reduced and typically mitigated to close to zero.
Sure, as the largest, most successful provider of contingent workforce management solutions in the region, we’re going to sprout the value of these programs. And the reason we can do that with authenticity is the empirical data at our disposal from over 27 years of expertise. We know these programs work.
Today, we’ve provided insight into why contingent workforce management programs mitigate risk for your organisation. I’ve nominated the top 3 risk mitigation outcomes that, in our experience, organisations enjoy when a contingent workforce management program is in place.
The Program Will Establish Best Practice for Your Business.
I need not go into the value of best practice per se, for ANY facet or department of your business.
One component that may surprise you however in the context of contingent labour it this: when contingent workforce management programs are best practice, flexible, data-driven and the business can pivot or respond to the learnings it delivers… you’re setting yourself up to acquire other valuable workforce learnings. The knock-on effects can be many.
For example, if the program feeds back timely and relevant workforce data, you’ll acquire a clearer and broader lens on your workforce mix, performance insights by worker type, and the optimal balance of contingent vs FTE labour. The savings here can be incredible.
In addition, best practice contingent workforce management programs will remove the risks associated with rogue hiring or random contingent labour acquisition: if it’s best practice, business-wide uptake will remove the risk of talent coming into the business that isn’t screened or approved.
So in this instance, the contingent workforce management program removes the risk of unnecessary financial loss, the risks of low or no credible workforce data insights and the resultant risks of poor workforce decision-making.
The Program Will Uncover (and Prevent Further) ‘Hidden’ Contingent Workers
One thing we often see when we start working with corporates and we look to determine their contingent labour numbers is the frequent uncovering of a high quantity of unknown or ‘hidden’ contingent workers in the business.
The risks and potential impacts that go with this scenario are many and are potentially the most aggressive from a negative business impact standpoint.
These include: the likelihood of overpaying for talent; the unregulated nature of hidden labour puts your business IP and trade secrets at risk; zero (or unsuitable) performance management; unrealised ROI potential – if you don’t know what you’ve got, how can you get the most out of it? And finally, the inability to forecast with accuracy to factor in market fluctuations and business peaks and troughs.
All of these risks will be eliminated if your organisation has a best-practice contingent workforce management program in place.
The Program will Deliver Workforce Legislation Compliance
Workplace legislation in any state or federal jurisdiction is complex, far-reaching and subject to frequent changes.
The very nature of this legislation makes compliance a challenge, for organisations with contingent talent.
The legislation covers issues including contingent talent in the workplace, taxation, payroll, superannuation, right-to-work, health and safety, unionisation, employment status laws… and others. It’s a veritable minefield of compliance laws and regulations established to ensure full workforce compliance for Australia’s employers.
And it’s those organisations self-managing contingent workers, that tend to get into hot water around compliance. Because, put simply, staying up-to-date on workplace legislation is hardly a high priority. This is where contingent workforce management programs hold great value.
An independent third-party expert, trained to interpret the legislation and ensure your organisation is compliant, can preserve your business both financially and reputationally. Contingent workforce management programs will mitigate the risk of non-compliance for your business. It’s that simple.
What’s your organisation’s approach to risk management with respect to your contingent workforce? Do you have experience with contingent workforce management programs? Let us know here.
OR….if you’re keen to learn more about the risk profile of your organisation, come along to our breakfast seminar in Sydney or Melbourne, which we’re co-hosting with Deloitte. Natalie James, Australia’s most recent ex-Fairwork Ombudsman will be speaking on a panel with industry experts, discussing the ways to avoid poor contingent workforce compliance practices