Although contractors make up around 30% of Australian businesses, many organisations have no centralised visibility and control of these arrangements, leading to significant risks. According to Ardent Partners:
- 32% of contractors are accounted for in business planning.
- 52% of contractors complete projects on time or on budget.
- 49% of contractors are rehired for future projects or initiatives.
When you don’t know how many contracts are in your business, what they’re paid, how long their contract is or whether they’re redeployed, these contractor programs usually perform poorly. The risks to businesses with these types of ungoverned programs include:
- Inability to forecast – Businesses are not able to accurately plan for scaling up or down their workforce without knowing how many contractors are in their business, leading to inefficiencies in the recruitment process.
- Cost blowouts – Without understanding market rates, you’re left wide open to relying on staffing providers for last minute contractor hires at exorbitant prices.
- Variation between contractors – Managers are likely hiring contractors on wildly inconsistent pay rates for the same worker type or role.
We manage and payroll over 10,000 contingent workers per year for over 300 corporate clients, capturing data on a contractor’s engagement, payroll and management. This data allows us to assess our clients’ programs and provide recommendations to improve outcomes of the workforce and in turn improve business objectives.
To assist our clients and the wider market with gaining a greater understanding of their contingent workforce, CXC has put together a tool that allows organisations to quickly assess their own program against market benchmarks. In this human capital diagnostic tool, we ask key questions to collect data on your contingent workforce program, such as extension rates, tenure and redeployment, and benchmark your answers against the extensive information we have on our contractors.
Fill out our questionnaire to hear the answers to:
- How many contractors should I be redeploying?
- What is an acceptable level of turnover?
- How do my rates of direct sourcing compare with the market?
And much more.