How To Manage Contingent Workers

managing contingent workers

In recent years, major shifts in employment have helped to substantially increase the number of contingent workers around the world. But, what does this mean for businesses moving forward and how can they adapt in order to effectively manage a contingent workforce?

A contingent worker is essentially anyone who may be employed by your company on a non-permanent basis. Depending on the size of your company, you’ve probably got a few contingent workers on the books. Perhaps, this may be a freelancer, contractor, temporary worker, or something similar.

There’s no doubt that there are benefits for the contingent worker and the employer taking them on. However, it’s becoming clearer that companies need to get ahead of this growing trend as the shift develops even further.

We’ve highlighted 4 useful tips to help you understand what is a contingent workforce and how best to manage yours. To learn more, continue to read on or head over to the HR page to find more of our blogs.

The future of your contingent workforce is relative to how your business grows

It’s no secret that every business looks to cut costs; whether that be through downsizing, utilising new technology, reducing office space, and so on. But, one of the most common strategies to reduce business costs is by outsourcing work to external professionals as you can be more selective when you require specific expertise.

However, you can’t just start hiring contingent workers without taking a look at the data. So, what does your overall workforce look like when you examine it as it currently stands? By identifying positions that are better suited for a contingent workforce your business can stay ahead of any developing requirements.

This kind of insight is extremely valuable and allows your management team to develop processes long before any change to your workforce occurs. After all, making a transition to contingent workers smoother will be far less disruptive to productivity.

Create a detailed analysis to discover more about your contingent workers’ capabilities

No matter what type of business your involved in, you have to know what skills your employees have to offer. This is commonly referred to as “Total Talent Vision” and involves having detailed information on both your internal and contingent employees.

Being able to recognise what your talent pool is capable of plays a crucial role in how effectively you can keep costs down. As your company can potentially rely on existing talent to take on more than one role you won’t need to hire unneeded personnel.

However, it’s not just the financial side of things that can enjoy the benefits of Total Talent Vision. Overall productivity will increase thanks to management teams being able to better allocate employees for work on projects.

Develop a clear management process

If your business has been testing the waters when it comes to a contingent workforce, stop what you’re doing and take a look at your management processes. You’ve probably already got something in place for your internal employees but you have to unite this with a process that will cover any contingent employees.

But, why? Well, your day-to-day operations depend on having a workforce that’s cohesive, no matter how large or complex. So, start by looking over your onboarding and offboarding processes to see how you can optimise this for your contingent and internal employees.

While it may not seem relevant now, as the trend for contingent talent grows, this kind of preplanning will save your company a lot of work in the long run. You may end up outsourcing anything from accounting and data analysis to design and project management, so it makes sense to keep your processes relevant before you make the leap.

Utilise technology to make management easier

There’s just no denying it; technology is your biggest ally when trying to manage a contingent workforce. Specialist analytics software can provide your management team with real-time data that can help them spot dips in employee productivity or problems with training.

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However, it’s your HR department that can really gain a huge amount from the technology that’s available on the market. Hiring contingent employees can become far easier thanks to resume scanning software that sifts through every application to provide you with only the most relevant talent out there. But, let’s not forget that communications technology now allows us to interview anyone, no matter where they may be located in the world.

In addition to this, onboarding becomes far easier as HR can centralise everything from company news and training guides to timetabling and live chat. The key is to keep up-to-date so that your company can capitalise on technological innovation as and when it becomes available.

Do you still have questions about what is a contingent workforce? To find out more, contact us now to speak with a friendly member of our team. Alternatively, to learn how Saxons can equip your company with technology to make managing contingent employees easier, head over to the IT Solutions page now.