Businesses, regardless of their size or structure, are continually in pursuit of a competitive edge. Their primary goal is to identify strategies that can elevate them above their competitors. In recent times, an increasing number of companies have turned their attention to reevaluating their workforce as a means to gain a strategic advantage.
The convergence of technology and shifting societal values has led to a notable surge in the significance of contingent workers. Additionally, there has been a growing emphasis on achieving a healthy work-life balance, which has contributed to the rising popularity of non-traditional employment. Consequently, contingent workforce planning offers a path forward for many organizations. This article will discuss the best practices for building a successful contingent workforce.
Creating a Contingent Workforce in 8 Steps
In 2021, Staffing Industry Analysts (SIA) counted 52 million contingent workers within the United States, representing 35% of the total workforce, with a revenue of $1.3 trillion. This year, contingent staffing is still surging, with projections showing substantial growth of 53%.
If you’re curious what all the hype is about, let’s break it down. Contingent workers can be hired on a temporary or project-specific basis. This flexibility allows businesses to quickly adapt to changing workloads or seasonal demands without the long-term commitment of permanent employment.
Additionally, employing contingent workforce planning is cost-effective, as businesses can avoid expenses associated with permanent employees, such as health benefits, retirement plans, and paid time off. This can lead to significant cost savings.
Here’s how to build a successful contingent workforce within your organization.
Strategic Contingent Workforce Planning
Before diving into contingent workforce management, it’s crucial to develop a clear strategy aligned with your business goals. Define the roles you need, the skills required, and the expected outcomes. Consider long-term and short-term needs to ensure your contingent workforce complements your permanent staff effectively.
Sourcing and Recruitment
Effective recruitment is at the heart of a successful contingent workforce strategy. Leverage various channels, including staffing agencies, online job boards, and social media platforms, to find the right talent. Establish robust screening processes to evaluate candidates’ qualifications, experience, and cultural fit.
Selection and Onboarding
Once you’ve identified suitable candidates, a streamlined selection and onboarding process is essential. Clearly communicate job expectations, provide necessary training, and ensure all legal documentation is in order. A well-structured onboarding process sets the stage for a productive working relationship.
Monitoring and managing contingent worker performance is essential to achieving desired outcomes. Establish clear performance metrics, provide regular feedback, and align expectations to ensure that contingent workers contribute effectively to your organization’s success.
Communication and Collaboration
Effective communication is critical when working with a contingent workforce. Foster an inclusive environment where contingent workers feel valued and part of the team. Utilize collaboration tools and platforms to facilitate seamless communication and integration.
Compliance and Legal
Navigating the legal landscape surrounding contingent workers is complex. Ensure compliance with labor laws, tax regulations, and contract agreements. Regularly review and update contracts to reflect changes in legislation or business needs.
Compensation and Benefits
Develop a transparent compensation structure that aligns with industry standards. Consider offering competitive benefits, such as access to training and development opportunities, to attract and retain top talent within your contingent workforce.
At Nexus Contingent Workforce, we prioritize the well-being and long-term prospects of our workforce. We recognize the importance of a robust benefits package in enhancing an employee’s overall compensation. Nexus Contingent Workforce serves as the ideal choice for employers who may not have the means to provide and manage employee benefits.
We provide an extensive range of benefits, all while ensuring competitive rates for our clients.
Learning and Development
Invest in the professional growth of your contingent workers. Provide access to training programs and opportunities for skill enhancement. This not only improves their performance but also enhances their loyalty to your organization.
Contingent workforce planning comes with many benefits, such as flexibility and cost-savings; however, it’s essential to set your business up for success by following industry best practices. Creating a contingent workforce requires careful planning, effective recruitment, and ongoing management. By following these key steps, your organization can enjoy the advantages of a flexible and skilled contingent workforce while maintaining alignment with your overarching business objectives.
Whether you have short-term, temporary, or permanent hiring needs, our seasoned recruiting team combines industry expertise with individualized attention to bring you high-quality talent. Reach out to NexusCW today to get started building your workforce today.