The contingent workforce has been consolidated in the last few years and is here to stay for the foreseeable future. Companies utilize this sector of the workforce for all sorts of purposes from project base assignments to fulfill skill shortages & absences.
The question arises, does your organization’s HR department has the bandwidth to identify, vet, and onboard contingent workers without disturbing their daily operations and without taking them away from your companies full-time employees. The answer to that question is, well it depends.
Today's contingent workforce is vastly different than it used to be. These workers are highly trained, specialized, and in-demand professionals. Moreover, they expect to be treated as such. Making sure the procurement process goes smoothly, guarantees employee satisfaction and retention.
Identifying the right contingent worker:
According to the Society for Human Resources Management (SHRM) it takes approximately 36 days to fill a position. It’s hard enough to identify a skilled worker for a full-time role, imagine recruiting someone for a temporary position. It would help if you sold the worker that this position will not only be rewarding during its duration. It will also serve as a stepping stone to their career. Furthermore, the worker will require the right combination of pay, benefits, and flexibility to take on this assignment.
Contingent workforce technology selection & implementation
Once you’ve identified the worker, your organization would require a set of systems in place to efficiently onboard, pay, and manage this type of worker. Your companies HRM system might not be able to handle these types of workers. Contingent workers require POs, different activity codes, and an array of other features that only a contingent workforce management system to the likes of Fieldglass or Beeline can provide. Implementing these systems requires time and resources that your corporation might not want to divert or pay.
Contingent worker categorization & compensation
Most HR departments simply categorize their workers as W-2 employees with exempt or non-exempt status. But with contingent workers, these categories get blurred. Depending on who's control the workers work under and are they free to set their own time & rate. How many hours the worker will work in a given week and do they qualify for benefits. Their employment relation needs have to be evaluated carefully before concluding workers category and compensation. This will avoid future headaches dealing with federal & state agencies or even the unsatisfied worker themselves.
Ever-changing federal, state & local regulations
If you have contingent workers in different states, your organization's HR department needs to be aware of that states or localities specific laws & regulations. From Paid Sick Leave ordinances to withholding local taxes, this can be overwhelming for an HR department that focuses on a single state
All these challenges lead to a better solution. Why not have an experienced team of professionals manage your contingent labor. After all, we’ve seen it all. If you’re thinking of ways to improve how your organization procures and manages contingent labor, NexusCW supports clients with changing legislation, compliance, and extensive contractor engagement management. It requires more resources and in-depth knowledge than most human resources departments or procurement teams can handle to manage a contingent workforce program properly.