The traditional 9 to 5 lifestyle is fading, and new technologies have made the desire for a flexible work/life balance a reality for employers and workers. In this blog post, we'll explain what a contingent workforce is, why it's essential, and how organizations can implement effective management strategies.
What is a Contingent Workforce?
Contingent workers are non-permanent employees who work on a temporary basis or are hired to complete a specific project. Often provided by staffing agencies, temp workers fall into a variety of categories, including,
· Seasonal employees
· Consultants
· Freelancers
· Independent contractors
Organizations often use contingent staff to fill gaps in their workforce, respond to fluctuations in demand, or bring in specialized skills and expertise. Workers may be hired to fill a short-term need, such as for special catering events, or to provide a specific skill set unavailable within a company, such as the need for security guards.
What is Contingent Workforce Management?
Contingent workforce management is a process that organizations and staffing agencies use to manage their temporary workers effectively. With the rise of the gig economy and the growing trend toward remote work, businesses have no choice but to install well-defined workforce management frameworks. Implementing the proper strategies sets up staffing agencies and workers for long-term success.
Why is Contingent Workforce Management Important?
Contingent workforce management refers to sourcing, hiring, onboarding, and managing temporary or independent contract workers and freelancers.
Agencies that provide temporary workers to external businesses must possess the proper tools to manage their workforce effectively. This ensures that each worker's skill set aligns with the job requirements to achieve business goals. Companies can save time, reduce costs, and increase productivity by having a well-defined strategy.
How to Successfully Implement Contingent Workforce Management Strategies?
As organizations increasingly turn to temporary and contract workers, staffing agencies can streamline the process of hiring and managing temp workers using the right strategies.
Define Your Needs
The first step in effective contingent workforce management is to define your workforce needs. This involves identifying the skills and expertise required, as well as the timeframe and budget available. This can help you hire qualified candidates that meet the requirements.
Screen and Hire Candidates
You want to match the right people to the right job. Therefore, you must review resumes, conduct interviews, and potentially perform background checks to ensure that candidates meet the job requirements and are a good fit. Following a structured hiring process lets you focus on hiring candidates with the necessary skills and experience.
Onboard and Train New Hires
Once contingent workers have been hired, they require the proper tools and resources to succeed. Proper onboarding and training on company culture, policies and procedures are essential to developing a pleasant and enriching workforce.
Communicate Mandates in a Timely Manner
When new mandates arise in your pipelines, this information must be communicated to interested candidates as soon as possible. This allows them to confirm their availabilities, helps you quickly establish work schedules, and keeps your talent pool engaged and connected to potential opportunities. Manage Payroll Complexities Companies and agencies are responsible for tracking billable hours, handling payrolls, and ensuring their temp workforce is paid on time. The process can be challenging when some are paid hourly, others are remunerated by project, and some issue invoices. Therefore, you need flexible solutions that can easily handle the exceptions and payroll complexities that come when managing a contingent workforce.
Invest in the Right Contingent Workforce Management Software
Since the pandemic, the job market has noticed a massive shift in how workers map out their career plans. The need for flexibility and the rise of autonomous workers have made contract and gig work attractive. With the help of new technologies to ease the transition, this new model has been a growing success and shows no signs of slowing down.
