As a business owner, managing your workforce can be challenging, and when it comes to a contingent workforce, the challenges can be tenfold.
Who manages the program - HR or procurement? Do we even have the expertise or time to do this in-house?
Do we lack visibility and control into our contingent workforce program?
Are we partnering with the right staffing agencies, and managing them in a way that enables continuous improvement?
Are we meeting compliance regulations to mitigate the risk of misclassification and co-employment?
Are all hiring managers following standardized processes when it comes to engaging, and paying, contingent workers?
These are just some of the top questions that many businesses have when it comes to their contingent workforce management programs, yet, unfortunately, most simply don’t have the time or resources to answer them.
Outsourcing contingent workforce management can help you answer these questions and tackle the key challenges of managing contingent workers. But how do you know which outsourced provider to partner with?
In this blog, we’ll take a look at some of the top criteria to consider when partnering with an outsourced contingent workforce management solution provider so that your business has the information it needs to make an informed decision.
Understanding Outsourced Contingent Workforce Management Solutions
Before we dive into the criteria you should consider, let's take a moment to understand what outsourced contingent workforce management solutions are. These solutions are services that help companies manage their contingent workforce.
These solutions can include everything from hiring, onboarding, compliance management, payroll and staffing agency management, and they help your business to improve internal efficiencies, access improved contingent workforce ROI, increase your talent pool and ensure that you’re meeting legal and regulatory employment requirements.
There are a wide range of outsource contingent workforce management solutions, which range from intensive implementations with complex process flows and customized solutions (such as an MSP solution), to simple, repeatable processes (like supplier consolidation services).
Which one your business chooses will depend on the unique requirements of your internal team and the contingent workforce management program it manages.
For a detailed look at the solutions available to your business, check out our guide - A Complete Overview of Contingent Workforce Management Solutions.
The Benefits of Outsourced Contingent Workforce Management Solutions
Outsourcing all, or parts, of your contingent workforce management to a highly-specialized and experienced partner can offer several benefits to your business, including:
1 - Cost Savings: Outsourcing your workforce management solution can be cost-effective, as it can save you money on hiring, training, and payroll.
2 - Improved Contingent Workforce Compliance: Outsourced contingent workforce management solutions can help you stay compliant with local and federal regulations, reducing your risk of legal issues and penalties.
3 - Better Internal Efficiencies: Outsourcing your workforce management solution can help to streamline your processes, reducing the administrative burden and improving efficiency.
4 - Improved Talent Acquisition: Outsourced contingent workforce management solutions can provide you with access to a larger pool of highly skilled talent, improving the quality of your workforce.
5 - Scalability: Outsourced contingent workforce management solutions can be easily scaled up or down, depending on your business's changing needs.
Criteria to Look for When Partnering with an Outsourced Contingent Workforce Management Provider
💲 Cost
One of the most important criteria to consider is the cost of the service. The cost of outsourced contingent workforce management solutions varies based on the level of service you require. Evaluate the cost and ensure it fits within your budget.
📐 Program Size Fit
A critical component is ensuring your provider is a good fit for the size and scope of your program. If you are a large enterprise company but have mid-market size spend, you may be inclined to choose a large enterprise style provider. We frequently see clients given inferior service, junior program support and often sharing resources with other programs so large providers maintain margin and growth. Choosing a partner that has you as a high priority and can make high-level service with mid-market spend profitable, will result in far better results.
🙌 Experience
Another essential criterion to look for is experience. Work with a service provider that has experience in managing a contingent workforce, knows the geographies you need coverage in and is skilled in the job categories you require support with (light industrial vs engineering vs healthcare vs IT for example). Ask for references and read reviews to ensure the service provider has a track record of success in your company’s specific industry.
⚙️ Adaptability
The outsourced contingent workforce management solution should be flexible and able to adapt to your business's changing needs. They should be able to provide a solution that meets your company’s unique workforce requirements, and scales and changes with your business as you evolve.
⭐ Reputation
Reputation is another essential criterion to consider. Work with a service provider that has a positive reputation in the industry. Look for service providers that have won awards or have been recognized for their excellence in workforce management.
📊 Reporting
Reporting is critical when it comes to workforce management. The outsourced contingent workforce management solution should be able to provide you with detailed reports that help you track your workforce's performance and compliance.
Need help implementing an effective contingent workforce management program that delivers results? Get in touch with Contrax today. We have a range of contingent workforce management solutions to help your organization better manage its externally-sourced workers and strategically manage your staffing agencies.
