Today, contingent workers make up a significant portion of the global workforce.
In the US, contingent workers – such as independent contractors, freelancers and consultants – are at around 40% of the country’s workforce. And Australia is following suit with many industry reports* predicting contingent workers will account for 40% of the total Australian workforce by 2020…that’s less than four years away.
The Aberdeen Group recently released report, ‘Best-in-class Contingent Labor Utilization: a Word To The Wise’, looks at how top performing organisations are approaching the engagement and management of their contractors. Rather than trawling through the whole thing, we’ve done the legwork for you. Read on!
Your Due Diligence – Don’t just jump on the bandwagon because everyone else is. In consultation with their HR, finance and procurement teams, top performing organisations have done their due diligence and determined that contingent workers are the best solution for their organisation’s requirements.
Top performing organisations are twice as likely to utilise contingent workers on a large scale.
Make them a part of the team – Within reason, help your contingent workers to feel part of the team (without running the risk of ‘deemed employment’ status). Top performing organisations work closely with their contingent workers to ensure they are engaged with the work they’re performing and ultimately increasing their productivity and effectiveness.
High performing team are 23% more inclined to consider contingent workers as a ‘vital or significant’ component of their workforce.
Understand the importance of compliance – When it comes to contingent workers, compliance is everything. High-functioning leaders recognise that compliance must be a priority when engaging contract workers. That includes taxation, co-employment, legislation and insurance.
Succesful business leaders are 58% more likely to recognise the importance of compliance when it comes to their contingent workforce.
Bring in the experts – Along with the many benefits of hiring contract workers, comes the costs & risks associated with them. Top performing teams recognise these risks as well as the opportunity for cost savings and look to external parties to support the management of their contingent talent and in turn increase their ROI. Managed Service solutions and the use of Vendor Management Systems is on the rise for teams in the know!
High-performance workplaces are 71% ore likely to utilise a Managed Service Provider & twice as likely to employ a Vendor Management System.
Set clear expectations – Make sure everyone is on the same page. Astute business leaders set clearly defined, timely and measurable deliverables for their contingent workers. This is crucial for optimum efficiency and the best ROI from your investment in a contract workforce.
Top performing organisations are 50% more likely to set goals and KPIs for their contingent talent.