As the US workplace accommodates a growing number of temporary workers, businesses have started feeling the need for contingent workforce management.
The US Department of Labor's 2008 report estimates that it accounts for approximately 30% of the total workforce. The number of employees hired on a contingent basis has inflated three times since 1990 and is expected to rise further. The spiraling growth in it is Global Contingent Workforce Management Services catalyzed by several advantages. However, it is critical to extenuate the risk factors with effective management.
The Need for Contingent Workforce Management
In the globalized economy, businesses are facing fierce competition and require the means to beef up cost efficiency. Industries are vying to achieve flexibility with employment laws and employee costs in consonance with the volatile demand and supply cycle. Moreover, with advancements in technology, companies require new hands to train the older ones. Thus,it is on the rise.
Contingent workforce comprises both part-time and temporary workers. Generally, such employees work for lower wages and benefits than permanent workers. However, hiring it may pose several problems, such as:
The availability of interested candidates
Means to judge their knowledge levels and capability
Legal risk associated with employing a temporary worker
Decision on wages
Previous records of candidates
Contract period or the tenure of work
Furthermore, the performance of the workforce may suffer since they lack knowledge of organizational policies and procedures. If a company is hiring from multiple agencies, the process can cause staffing errors, non-uniform pricing, a downturn in quality and loss in terms of both time and money. Thus,the management is the need of the hour to mitigate the risk factors associated temporary workers.
Professional Contingent Workforce Management Services
The internal HR department is not fully capable of recognizing the challenges in the management. Thus, businesses organizations seek cooperation from professional service providers to maximize ROI. Services offered by contingent workforce management service providers are:
Effective recruitment by hiring trained workforce as per client's specific requirements
Reduced hiring and employment costs for the client
Tracking performance
Handling legal matters (employment contract) associated with temporary workers
Some of the expert contingent workforce management service providers have developed a platform based on SaaS (software as a service). It allows higher efficiency Global Contingent Workforce Management Services and simplification of the processes.
Level Six Partners have experience and expertise in contingent workforce management services. The company has developed 'ContingentForce,' a client-based platform to enhance the managing capabilities.