In today’s current landscape, according to the “State of Contingent Workforce Management” report from research firm Ardent Partners, 62 percent of enterprises perceive contingent labor as a vital component of their overall workforce.
And for good reason. The use of contingent workers offers organizations a competitive advantage by increasing their access to skilled talent, reducing cost and risk, accelerating project timelines and enabling them the opportunity to build a highly-flexible and agile workforce.
It’s no surprise, then, that, according to a study from MBO Partners, the average company reported that contingent labor accounts for 28 percent of their workforce, with nearly seven in 10 (67 percent) expecting their use of contingent labor to increase in the next 18 months.
Yet despite the clear benefits that contingent workers bring to an organization, many businesses are still struggling to manage this labor group effectively. That’s because successful management requires contingent workforce technology, dedicated resources and category expertise that many businesses simply don’t possess.
Successful contingent workforce management demands visibility into each contingent worker, insight into the performance of staffing agencies, and seamless worker onboarding and offboarding. For a successful program that truly saves money and improves workforce quality, 100 percent of contingent labor should be visible and accounted for.
With that in mind, in this blog we take a look at the top three reasons why your business should gain complete visibility of its contingent workforce in 2023.
1 - Your bottom line is critical in the current economy
Opinions are varied about the economic outlook over the next year, but one thing is for certain, if we don’t move into a recession we will at least continue to find ourselves in an economic downturn.
To continue to succeed during difficult economic times, businesses must do all they can to mitigate expenditure and improve their bottom line. This is particularly pertinent for companies with a lack of visibility into their contingent workforce, as rogue spend and unaccounted costs often move throughout the program unnoticed.
When businesses have improved visibility and control over their contingent workforce, however, they can mitigate rogue spend and prevent hiring managers from overspending with suppliers. This not only saves the company money, but improves its bottom line so that it can continue to grow during a recession.
2 - Ensure you are partnering with the right staffing agencies
As businesses are increasingly turning to the contingent workforce to improve their business agility and reduce costs, more staffing agencies are entering the market to fill that increased demand. This means businesses have more choice than ever before when it comes to working with partners to fill their contingent labor requirements.
This increased choice makes it even more difficult for businesses to choose the right staffing agencies to fulfill their needs. Organizations that have complete visibility over their contingent workforce program will be able to strategically analyze the performance of their staffing agencies, ensuring they can effectively track them against milestones and deliverables.
3 - Evaluate how you are managing your non-employee workers
The mix of contingent workers has changed dramatically in recent years. Once associated with low-skilled labor, the contingent workforce is now made up of skilled professional talent. This sought-after talent has different expectations about how it should be treated by hiring businesses.
Since the market for this talent is highly-competitive, businesses must focus on ensuring that the contingent worker experience meets expectations. Visibility into how this category of workers is being managed can help businesses build new approaches that better attract, engage and re-engage contingent workers.
Are you interested in learning about how your organization can gain 100 percent visibility and control over its contingent workforce?
Contrax has a range of solutions to help businesses better manage their non-employee workforce and staffing agencies. Book a meeting with our team of experts today to learn more.