Managing contingent workers | Main Region | EW
Managing your contingent workforce
Adapting to change:
A new world of work:
Strategies for success
This transformation isn’t a small task, but there are three key pillars of a successful contingent workforce management strategy.
Misclassification remains one of the greatest risks, with severe financial and reputational repercussions for those who fail to comply with legislation. We’ve seen well-known cases such as Uber settle two class-action lawsuits totalling $100 million that enabled keeping their drivers classified as independent contractors instead of employees. Even going back to the early 2000s, a class-action lawsuit against Microsoft resulted in thousands of temporary workers being reclassified as permanent and costing Microsoft $97 million. Often, misclassification is the result of mistakes by organisations who are unaware of rules or lack workforce visibility, but the financial risk and outcomes will be the same.
Organisations must also establish rigorous processes to ensure that employee and customer data is protected as the workforce becomes more fluid. A comprehensive selection and vetting process, along with well-structured onboarding, training and offboarding programs, can mitigate the risk of information loss or security breaches.
With offshoring making a comeback, and remote work success demonstrating the feasibility of utilising talent irrespective of geographic location, contingent workers must be managed with metrics that monitor outcomes. Indeed, the nature of the contingent worker means that organisations have very little scope to dictate or control the means and manner in which work is completed.
Building trust in the temporary workforce is integral, and a clearly defined Statement of Work can instil accountability by connecting talent to specific timelines and deliverables. A Statement of Work defines all the aspects of a project including the activities involved, the deliverables and the timeline. This helps to determine the terms and conditions that all parties can agree on to work toward project outcomes.
Up the tempo
Refine your strategy
Once integrated into the workforce, it can increase visibility, offering insights into skillsets, tenure and project progress, allowing you to create talent networks that can be strategically deployed and redeployed to meet your organisation's evolving needs.
Leveraging a range of real-time data analytics tied to specific project objectives provides oversight on top performers (and their associated costs) while spotting any missed milestones. Instant identification enables you to work with teams to identify barriers and steer the project back on course, preventing extensive rework or delays.
The implementation of a sophisticated VMS can elevate the integration of temporary talent from just-in-time4 workers to key assets of your workforce management strategy, ensuring that the right talent is deployed where it’s most needed.
A new world of work
Survival will require companies to learn to work with the contingent labour market. But in order to thrive, managing your contingent workforce effectively can help you to remain compliant, easily track your performance and oversee a resourcing process that consists of thousands of interactions among various stakeholders and frequently disconnected technologies.
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