How to Effectively Implement Contingent Workforce Solutions

Mar 29, 2022
How to Effectively Implement Contingent Workforce Solutions
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A contingent workforce represents non-permanent, outsourced employees that can include contractors, freelancers, consultants, and remote workers, among others. They are hired by companies on a short-term or project-by-project basis, with no obligations for providing permanent, continuous work after the job is completed.

Due to their flexibility, availability, lower expense, and often higher specialization and expertise, the demand for contingent workers and the popularity of the gig economy is increasing each year. In order to remain competitive and agile, all organizations should attempt to focus on this category of workers, especially considering the latest changes in workplace trends and demands caused by recent global events. To that end, here are some effective ways you could implement contingent workforce solutions in your company as well:

Partnering with the most suitable staffing firms

When it comes to project-based recruitment, hiring a contingent workforce is truly the best way to bridge skill gaps. But there may be times when you need to hire workers for more remote locations, for example, where access to necessary talent could be inconsistent at best. In those instances, different solutions might be needed.

Opt for a more flexible and experienced staffing firm that can create an onsite HR team to make the onboarding process more seamless, and use sophisticated recruitment products for achieving a more systemized approach to talent management, from the onboarding to the offboarding process. Implementing well-defined procedures for sourcing and hiring contingent workers will enable you to build the best, most efficient workforce for your specific needs.

Selecting the right payroll management solutions

Finding talent through the right channels isn’t the only aspect necessary for smooth and streamlined operations. A contingent workforce needs to be managed efficiently as well. But as independent contractors and temporary workers have a unique legal definition, and therefore require different management and payroll solutions, hiring outside help might be the best course of action.

For instance, you can invest in structured contractor payroll solutions offered by experienced and reliable providers. These systems will help to ensure dependable and consistent payment cycles for the entire contingent workforce, along with providing a number of effective measures and checks to reduce payroll issues. Such experts will take the responsibility of managing contract workers quite seriously as well, including a combination of human and automated interactions for assisting contractors and management services, and ensuring all processes are completed in a compliant and timely manner.

Collaboration between HR teams and Procurement

Although HR and Procurement are two separate entities, they must be highly interconnected. Gaining productivity and efficiency from a contingent workforce will be quite difficult if there is a lack of communication and collaboration between these two departments within your organization. Human resources and Procurement teams should build a strong relationship based on mutual respect and understanding, appreciating one another’s demands and capabilities.

HR teams should lead Procurement towards more strategic sourcing and hiring of contingent workers, and decide on potential temp-to-perm conversion of part-time employees. The Procurement department, on the other hand, should make it a point to mentor HR teams on vendor pool optimization and efficient vendor management system of staffing agencies, while dealing with the recruitment of contingent workers. This interconnectedness will enable your organization to achieve the common goal of effectively filling skill gaps with high-quality employees.

Streamlined background verification processes

Sourcing and onboarding contingent workers, in combination with strict project deadlines and limited timelines, could cause a number of challenges for any organization. In an effort to avoid bad hires and risk mitigation, rigorously screening each candidate is always advised. As clients and partners expect accurate and timely project implementation, background verification should never be overlooked. Accessing a pre-vetted talent pool when hiring a contingent workforce can be quite beneficial in this case.

The following screening process could also include recruitment solutions based on machine learning and artificial intelligence. This will allow you to find the best, most suitable talent by examining their backgrounds, specialized skills, experiences, emotional quotients, sensitive documents, etc. As a result, you will be able to build more trust and reliability in your organization through clean background verification processes.

Clear communication with contingent employees

Contingent workers might only be part-time employees in your company, usually for specific, shorter projects, but they should be treated equally as full-time employees in terms of work ethics and setting realistic expectations. This means posting accurate job descriptions, maintaining clear shift and payroll records using recruitment software, as well as handling evaluation reports that can be used as referrals for future conversions.

Open, honest, and transparent communication is also crucial, both when it comes to conveying key expectations to candidates during interviews and necessary feedback during projects. The better you are able to follow your contingent workforce strategy and set these expectations with contingent labor from the very beginning, the higher your chances will be of efficient managing contingent work and creating a more productive environment.

Contingent workforce solutions have clearly been beneficial for many organizations, allowing them to utilize the most highly-skilled workers whenever required, and achieve cost savings at the same time. After all, any smart leader would prefer a trial period, hiring contingent workers first, and then considering permanent roles if they prove to be the right fit for a long-term collaboration. If you are looking for similar solutions as well, the advice mentioned above can help you to streamline your processes and accelerate the road to success.


Author Bio: This article is written by our marketing team at HR Cloud. HR Cloud is dedicated to providing powerful solutions for your HR teams and creating an exceptional employee experience. Our aim is to help your company improve employee engagement, onboarding, and to save you valuable time!

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