Contingent workforce management: What Employers Need to Know?

January 04, 2023

Contingent workforce management: What Employers Need to Know?

Posted by: Ralecon Consulting Category:Contingent Workforce

Table of Contents :

    Today a company’s workforce looks vastly different than it used to look years ago. Nowadays, in many organizations and businesses, you are likely to find an increased rate of the contingent workforce or contingent labor models rather than permanent employees. This concept of flexible forms of employment benefits companies that are looking for a role where the demand fluctuates or grows rapidly. This blend of flexible and contract workforce management can save the company from employee expenses and works productively for the businesses. 

    Below we deep delve into what contingent workforce management is, the benefits, the pros and cons as well as the ways to assist in efficiently managing your global contingent workforce.

    What is a contingent workforce?

    A contingent workforce solution is a term used to describe workers who are hired for working on a project basis or for a set amount of time instead of the traditional model of employment. This type of workforce has become increasingly popular in recent years as it allows businesses to be more flexible with their staffing needs. Contingent workers can be hired through staffing solutions or directly by the company.

    The contingent worker or labor purpose is to-

    • Fill the skill gaps in the business.
    • Provide the insights and expertise to fulfill the project requirements or specialist business needs, that are unable from the existing employee pool.
    • They are not on the company payroll but provide services to the organizations for a limited period as a contractor or consultant

    How does a company benefit from a contingent workforce?

    There are numerous reasons that a contingent workforce solution can benefit more and more organizations. Some of the major benefits include-

    • Enabling the organizations to take the employee on a contract based, which in turn cut down the labor costs.
    • The talent of the employee can be accessed when and as the company needs them. Also, they can easily adapt to market fluctuations.
    • Enhancing the flexibility and responsiveness of the entire workforce.
    • The contingent workforce management is scalable depending on the business needs and performance.
    • The hiring process for a contingent workforce is faster and simpler and often it is done on short notice.

    Pros and cons of a contingent workforce

    There isn’t one answer that fits all companies when it comes to hiring contingent workers. Some companies might have an overall policy in place, but it’s ultimately up to the decision-maker to weigh the pros and cons on a case-by-case basis. Before making any decisions, be sure to evaluate all of the pros and cons of contingent workforce management.

    Pros of Hiring a Contingent Workforce

    • The staffing procurement of the company can be quickly and adjusted on-demand for the short-term with ease or seasonal peaks.
    • As an independent contractor or other contingent workers, the company is not legally entitled to employee benefits. They can avoid the significant costs associated with recruiting and hiring by using contingent workers.
    • If your company wants to hire a specialist or consultant for a particular project but in the case of the contingent workforce, you don’t necessarily need to hire full-time employees. You can also get access to the talent pool according to the market demands. 
    • The contingent workers are often highly specialized so you won’t need to provide a significant amount of training.

    Cons of Hiring a Contingent Workforce

    • Depending on your company’s location, labor laws can either be very different or slightly varied. For companies that rely on a contingent workforce, it is essential to use clear and concise job descriptions in order to avoid any potential issues. The job posting should include key information like exemption status, timeframes, and pay rates. The more specific the details, the better. By being upfront about these things, you can avoid any misunderstandings or complications down the road.
    • Companies will sometimes face a hard time telling the contingent worker that the job has a definite end date. Contingent workers can feel misled if clear expectations and end dates are not set from the beginning of their employment. 
    • Contingent workers are often not with a company long enough to know if they’ll be a good cultural fit. If they aren’t included in company meetings or events, they may feel like they aren’t part of the team which can lead to different expectations and treatment.

    How to manage a contingent workforce?

    Carrying out these practises will help you to manage contingent labor effectively: –

    • Find ways to make them a part of the team. For instance, encourage them to attend networking events on the behalf of a company or include them in relevant training sessions of the company.
    • Consistent two-way communication is key to ensuring contingent workers feel connected to the brand, the culture, their team members, and their projects. To facilitate that communication, companies should give these workers access to any internal employee communication systems, like a company intranet or messaging platform. They should also receive company newsletters and be invited to relevant meetings. Furthermore, feedback should be solicited from contingent workers and their thoughts, ideas, and concerns should be encouraged.
    • Although contingent workers are hired for a specific role and for a particular duration. But they are always looking to hone their abilities and develop new skills. If you offer them opportunities for growth, they are more likely to stay loyal to the company and will be readily available for work in future. 
    • It’s important to have a clear understanding of the expectations of both the company and the contingent worker before any contracts are signed. This includes things like compensation, deliverables, length of the contract, and additional benefits. Make sure that these expectations are realistic and achievable so that you set your workers up for success.

    If your company is looking for high-quality contingent labor managed service providers, then IMCS Group is the best find for you. We have experts who will surely help you to find the best candidate as per your workforce requirement. Engage with us to know how to overcome the challenges in staffing. Contact us at (972) 929-6600 or write to

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