5 Common Contingent Workforce Management Mistakes and How to Fix Them

Contingent workforce management mistakes can cripple your organization with litigation and fines. Learn about the common mistakes and how to fix them.

What is Contingent Workforce Management?  

Most organizations today have a hybrid workforce that consists of contingent workers, employed, self-employed, freelance, project workers, SOW (statement of work), full time and part time workers.  Traditionally, contingent workforce management refers to how contingent workers or non-permanent workers are managed.

Managing a contingent workforce comes with its own set of challenges.

Workforce management issues faced by businesses can be directly related to how a company treats is contingent workers.  Some companies will include their contingent workforce as part of their HR practices, while others will treat contingent workers as a separate part of the business or worker group and as a result have their own processes setup.

As there are many different approaches to managing a contingent workforce, we’ve listed below some of the contingent workforce management mistakes and how to fix them.

1. Misclassification

Worker classification is constantly in the spotlight.  In the USA, more states are cracking down on misclassification of their contingent workers. Having a tried and tested process for classifying your workers is paramount to your program success and should be part of your contingent workforce management best practices.

Solution: Correct Classification with CXC Comply

CXC’s proprietary compliance platform CXC Comply, ensures your workers go through the correct validation process to ensure they are correctly classified before they are engaged.  CXC can also perform a workforce audit on your existing workforce to detect any misclassification issues.  Ask for a demo.

2. Inadequate Contracts

Some companies prefer to use their own contracts when engaging contingent workers.  An inadequate contract would leave your company in a vulnerable position and open to litigation or fines.

Solution: Secure and Automated Onboarding Process with CXC

All CXC contracts have gone through thorough reviews by our global legal team.  Our contracts stand up in whichever country they are being used.  Our secure and automated onboarding process ensures all signatures are obtained and in place, thereby reducing risk to your business.

3. Lack of Visibility

Part of contingent workforce management best practices includes visibility of your contingent workforce.  You need to be able to see where your contingent workers are in your organization, what their pay rates are and how much time they are billing and invoicing.

Solution: CXC’s Contractor Portal MyCXC

CXC’s contractor portal MyCXC, built on the Salesforce platform, provides a secure, online environment where contractors have their own unique login to submit their hours.  All signed contracts are stored in our system, recording all the details of the contract, providing reporting, visibility and transparency to our clients, reducing the potential for workforce management issues.

Greater visibility enables better governance and compliance with federal, state, provincial and local regulations.

4. No Signed Extension

Contingent workforce contracts have a start and end date.  Once the end date comes around, you need a system in place to alert your team of the fact, so that a contract extension can be created and signed by relevant parties.  Failing to have a signed extension in place means the worker is no longer under an official contract and could leave your company at risk once again.

Solution: Automated Contract Extension Process with CXC’s Back End Solution

CXC’s backend system automates the process of contract extensions and links to the original contracts.  Reminders are sent out and followed up, to ensure the contractor and program manager signatures are obtained in time before contract expiration.

5. Right to Work Not Validated

With the expansion of the contingent workforce worldwide, contingent workers can be engaged anywhere and perform work remotely, but do they have the right to work in that country?  Right to work checks are part of managing a contingent workforce.  As with the above, failing to validate a worker, can create further workforce management issues and risks to the business.

Solution: CXC’s Online Platform CXC Comply puts each Worker through a Robust Check

CXC’s stealth compliance platform CXC Comply takes the guess work out of right to work checks.  Our proprietary online platform puts each worker through a robust check to ensure they have the correct documentation in order to work in that particular country.

CONTINGENT WORKFORCE MANAGEMENT SERVICES

CXC’s contingent workforce management services makes engaging and managing your contingent workers stress-free all around the world.

Organizations with an existing global footprint or who are looking to expand globally, are increasingly adopting a global contingent workforce approach and looking to an outside company like CXC to provide contingent workforce management services. Learn more about different types of workers and how a contingent worker can benefit your organization.

Whether you are direct sourcing, utilizing outside recruitment services or adopting a talent pool model, contact our team to find out how CXC can assist with your contingent workforce management worldwide.

 

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