When HR and procurement are working in unison, they can effectively manage the processes and costs. But, how do you know whether your program is flawed when you can't see the full picture?
Are you confident that you are getting the best contingent workers at the best rate, all while maintaining the latest labor guidelines and compliance measures? These are intentionally loaded questions because managing your contingent workforce is full of complicated checks and balances.
Organizations that employ hundreds, if not thousands, of contingent workers, such as freelancers, independent
How to Drive Efficiencies in Contingent Workforce Management
Think of running your contingent labor program is like training for a marathon. Every runner, regardless of experience, knows there is a degree of preparation required, but the most seasoned runners know the importance of setting a steady pace. For buyers of contingent labor, the race to
Contingent workers can lead to big surprises in compliance risks. Download this guide to understand the associated risks of co-employment.
As your contingent workforce program multiplies, so do the varying pay rates, associated governance and risks, and community of contingent workers all of which need to be closely tracked. With this in mind, here are some simple best practies to incorporate in your budding program.
Identify the Stakeholders
According to Forbes magazine, the blended workforce trend (a mix of contingent and permanent workers) isn't going anywhere. The contingent workforce population only continues to grow and become more complex. Depending on the size of your organization’s contingent workforce or the experience level of internal buyers, be it HR, procurement, or a combination of the two, it’s important to understand who is doing what exactly when managing a workforce as complex as contingent.
The key with contingent or flexible talent is that while HR generally sets the guidelines for things like screening and onboarding, most HR departments don’t have the staff to actually manage or monitor the process. So clearly, HR’s job as a stakeholder in the process starts with compliance
Optimize Contingent Labor Program
Without question, human resources should play a role in screening talent throughout the organization. Similarly, procurement, finance, and department managers need some level of control over the management of contracts, services, and expenditures. Flexible talent crosses all of these areas and as a result, you need to assess what will give you the level of control you seek; self-performing or outsourcing.
Surprisingly enough, the perception by many organizations is that these controls are in
While companies are spending millions on flexible labor, many of them don’t know how and where buying decisions are made, and more importantly, how they can to effectively manage this workforce. Regardless if you decide to keep this function in-house or outsource it, all parties involved in contingent workforce management need to understand their precise role in the overall process.