Why it’s essential to implement a contingent workforce management strategy
Guy Kawasaki. Marketing specialist & author.
Anyone in business will realise the fundamental truth of Kawasaki’s words. In the contingent workforce management space that truth rings even louder.
For business owners, the idea of a contingent workforce offers many attractions; among them:
- Flexibility: You can expand or contract your workforce according to workloads or a changing environment.
- Cost savings: You don’t have to maintain full time employees for 52 weeks per year. You also save because contingent workers do not receive all the benefits and entitlements that traditional employees receive.
- Quick access to expertise: Contingent workers can fill a skills gap within an organization quickly, or allow you to upskill fast to meet new challenges.
- Fast hiring: Hiring for your business is often a complicated, time-consuming and costly process. There’s far less red tape if you choose to contract a contingent worker
It’s the lure of advantages such as these that has seen the size of the contingent workforce – in Asia and globally – grow exponentially in recent times. According to the recent CXC and Ardent Partners Asia report (1), 43% of the global workforce is considered ‘contingent’ or ‘non-employee’, while in the Asian market that figure is 26%.
Is your contingent workforce strategy working to its full potential?
Our research also shows that many employers are not fully realising the full efficiencies and cost-savings potential of their contingent workforce because they don’t have a single, business-wide contingent workforce strategy. Separate departments manage fragmented groups of workers, with higher administration costs; hiring and onboarding processes – so important for an employer’s brand – are all over the shop, compliance frameworks are shoddy and not at all streamlined…
Though the idea was great, the implementation let everyone down. Snafu* situations are all too common in the modern business world.
That’s why it’s so essential for organisations to develop a streamlined, high tech methodology to effectively and comprehensively manage their non-employee workforce to ensure, compliance, achieve significant cost savings and improve efficiencies.
A successful contingent workforce management strategy needs an MSP
And the best way to get there is to partner with a proven contingent workforce management provider, known as an MSP or Managed Services Provider. Their many years of experience and knowledge will help you to analyse, evaluate, re-configure and streamline your management processes to achieve maximum efficiencies across the board.
Here users can perform actions such as initiating talent or project requests, review compliances, evaluate project bids and hire workers, review timecards and expenses, onboard and offboard workers, and much more.
This automated tool will also help maximize productivity, decrease compliance risks and streamline your operations by tracking deliverables; helping your business measure performance and properly plan for future goals.
With the right MSP, VMS and strategic approach in place, an organization can significantly increase the effectiveness of its contingent workforce management program, yielding wide-ranging benefits that include:
- Contractor Compliance: Providing proper classification of all contingent workers, self-employed workers as well as co-workers
- Risk Management: A properly configured contingent workforce management strategy mitigates worker misclassification risk
- Cost Savings: Streamlined operations save time and money and helps ensure competitive supplier bidding
- Workforce Visibility: Deepens an organization’s understanding of its workforce as well as providing insights into how to improve operations
- Talent Quality: A MSP/VMS partner can revolutionise you recruitment, onboarding and talent management procedures
The essential bottom line? Developing a cohesive contingent workforce strategy supporting total workforce management will help ensure your organization is implementing proven best practices to access talent, drive savings and efficiencies, and mitigate risk.
With CXC, you team up with a partner with global knowledge and experience across a wide range of contingent workforce management areas such as recruitment, compliance, payroll and OHS, onboarding and training etc. In addition you benefit from specialised, state of the art technologies and strategies to implement and successfully manage every aspect of your contingent workforce strategy