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Five Contingent Workforce Considerations

 

Author: Marisa Kacary

Now, I’d like to focus a bit more on the contingent workforce, one of the core areas of what we, at Pontoon, refer to as Total Talent– a holistic, integrated approach to talent acquisition.

“Hiring more temporary workers instead of permanent employees was a natural corollary [of the most recent global financial crisis] as everyone dithered in making long-term financial commitments,” say authors Arkadev Basak and Vishal Gupta in a 2017 Everest Group study produced in partnership with Pontoon.

Are you looking to implement a contingent hiring strategy? Here are five areas to consider:

  • One of the challenges businesses face is how to streamline and optimize their processes in order to improve efficiencies and to create an optimal ecosystem. A Managed Service Provider (MSP) will help organizations consolidate spend, ensure transparency and mitigate risk as well as track performance and metrics.

          Top takeway: increased visibility on contingent talent will generate efficiencies.

  • Depending on a business’s fluctuating demands, contingent employees can also fill permanent roles, which saves an organization money recruiting external candidates. A more optimal workforce utilization state is therefore reached, which in turn boosts the ROI on talent.

          Top takeaway: greater workforce utilization leads to cost savings on external hiring.

  • In order to tap into wider talent pools, organizations will need to find the right external suppliers to help them plug those chronic talent gaps, often at short notice. Engaging with an MSP gives you a direct route to both the volume and quality of talent needed.

          Top takeway: to source hard-to-fill roles, partnering with the right suppliers is critical.

  • Hiring the right quality of compliant people has always been a challenge when recruiting contingent workers. The screening and vetting of individuals – all the background checks – takes time. The process needs to be carried out by experts who understand local labor regulations.

          Top takeaway: make compliance a priority or risk facing severe financial penalties.

  • Culture matters – let’s not forget that we’re dealing with people. It’s often easy to neglect your contingent workforce, and I’m not just referring to slack compliance checks. Will the contractor fit in to your culture? Has she received the same onboarding as permanent workers?

          Top takeaway: ignore the cultural fit of your contingent workers at your peril.

As we know only too well, many high-skilled workers are now working as freelancers. If organizations want to improve efficiencies, hire the right quality of people and make cost savings, they must have a robust and unified contingent workforce strategy. I’d love to hear your thoughts on the subject.

To learn more about Pontoon’s contingent talent solutions, click here.

You can also download the Everest Group study here.

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