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5 Reasons to Outsource Contingent Workforce Management | AugmentHR
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Modern businesses can’t afford to sit still. They must constantly adapt to industry trends and consumer behaviour, which means that their employment needs may shift drastically over a short period. Contingent workers have emerged to meet these demands. These skilled operators offer their services to companies for a limited time, allowing organizations to complete short-term goals without hiring an unnecessary full-time employee.

Unfortunately, it can be difficult for managers to use contingent workers effectively, with many challenges to overcome. It’s difficult to build an office culture around temporary workers, and a schism can open up between temporary employees and full-timers. Contingent workers may also need more training and could feel less loyal to a company that pays them for their labour but not for benefits or other rewards.

Thankfully, effective contingent workforce management can help you minimize these complications. Companies that outsource this work usually benefit from better strategies and more dedicated operations. Read on to find out how an external management organization can help keep your temporary employees motivated and happy.

MANAGING CONTINGENT WORKERS TAKES TIME AWAY FROM YOUR FULL-TIME EMPLOYEES

Companies that use contingent workers need to strike a tricky balance between full-timers and their temporary counterparts. Short-term workers represent a tangible threat to permanent employees. They can also eat up a hiring manager’s time and resources, which could lead to resentment from those with stable jobs.

Outsourcing contingent workforce management tasks ensures that your human resources department can maintain efficiency for both parties without the need for further full-time staffers. Your HR people will be able to accommodate permanent employees without having to worry about the unique challenges that come with temporary workers.

YOU’LL FIND BETTER WORKERS

If you hire a worker to do a specific job in a short period, you want to know that you’ll get the right bang for your buck. Unfortunately, it takes more than just the right qualifications to be a good freelancer. Temporary employees need to be self-motivated, flexible, and conscious of deadlines to succeed. If you hire people who lack these skills, they may not live up to your expectations.

An external contingent workforce management organization can help you avoid these pitfalls. These companies have pre-established relationships with top freelancers, so they can help you with the recruiting process. If you already have a team of temporary workers, they can oversee them efficiently to ensure you continue to get value for your continent workers.

YOU WON’T VIOLATE TAX AND LABOUR REGULATIONS

It’s important to manage your expectations when you hire temporary workers. If you expect too much from them, you could treat them like full-time employees. This would violate tax and labour regulations, and could result in lawsuits and investigations to reclaim unpaid benefits. External contingent workforce management companies know how to navigate this regulatory minefield. You’ll never violate the rules if you hire one of them to oversee your temporary workers.

THE MANAGEMENT PROCESS IS STREAMLINED

Human resources departments don’t just have to divide their time to accommodate temporary employees. Everything from payment to employee records is different for non-permanent workers, which can shake up your company’s organizational structure. Workforce management organizations ensure that your company’s processes stay streamlined, preserving your efficiency and productivity.

YOU’LL SAVE MONEY

Time is money for your business. Your operations will flounder and your search will cost more if you can’t find the right temporary workers right away. This means double the trouble for your bottom line.

External workforce management companies reduce the cost and time involved in finding temporary solutions for your company. As a result, you’ll get the right workers for less money.

Felicia Smith

Felicia is the manager of human capital solutions at AugmentHR. With over six years of recruitment experience coupled with multi-faceted HR roles, Felicia is an expert in matching people with the right role and environment. She has worked in many different industries, including investment banking, HR consulting firms, medical, and commercial. Understanding people is one of her strengths, and she has recruited at every level, from directors, project managers, and engineers to operators and general labourers. Her ability to network and develop relationships has been a key tool to her success. With approximately two years of experience managing people and creating a positive work environment, Felicia’s diverse skill set makes her a well-rounded individual. Her business education and background help her identify different business needs and human capital solutions.

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