When choosing the right MSP, look for a partner who prioritizes your success, responds quickly, and offers tailored staffing solutions—not red tape.
When companies need to expand or contract their workforce, they often turn to contingent workers.
The contingent workforce is comprised of professionals who are hired on a temporary basis to complete specific projects or tasks. Contingent workers include independent contractors, part-time employees, and temporary staff. A contingent workforce can be as small as one employee working on one project, or it can consist of thousands of employees across multiple projects.
Contingent workforce management is the process of managing a company's contingent workforce. This can include:
The contingent workforce is made up of workers who are hired on a temporary basis to complete specific projects or tasks. The contingent workforce can include independent contractors, part-time employees, and temporary staff.
This type of employment has been growing in popularity for decades. In fact, according to the Bureau of Labor Statistics (BLS), there were over 10 million individuals working as contingent workers in 2017 alone!
The size and scope of these organizations vary widely; they may consist of just one employee working on one project or thousands across multiple projects at any given time.
Contingent workforce professionals include independent contractors, part-time employees, and temporary staff.
A contingent workforce can be as small as one employee working on one project, or it can consist of thousands of employees across multiple projects. A single person may be an independent contractor who provides their services to the company on an ongoing basis or for a set period of time. Or it could be a large group of people hired by another organization to do work for them.
A large contingent workforce can also be permanent or temporary, depending on whether its members are part of your organization or outsourced from another company (i.e., "outsourced").
Contingent workforce management is the process of managing a workforce that is not a permanent part of your organization, but rather a team of individuals who are brought together to meet your project or one-time need. It's important to understand that contingent workers are not temporary employees; they can be full-time, part-time, or on-call--they just don't have an employment contract with you.
Contingent Workforce Management Processes
There are four key elements involved in any successful contingent workforce management process:
As organizations grow and add to their permanent workforce, they often turn to contingent workers for help with projects, staffing shortages, and other needs. The contingent workforce consists of individuals who are not full-time employees but rather work on an as-needed basis. This can include temporary employees who are hired through an agency or staffing firm; freelancers who work independently; independent contractors who provide specific services on a project basis (such as software developers or graphic designers); or interns who are employed by colleges/universities and paid by the hour.
The use of contingent workers can provide several benefits:
Outsourcing is a common practice. Many companies outsource portions of projects to third-party vendors that specialize in certain areas such as software development or graphic design, for example.
The benefits of using contingent workers include:
The contingent workforce has become increasingly important in recent years due to changes in technology and business practices that have made it easier for companies to access outsourced talent through Managed Service Providers and freelance marketplaces.
A growing number of companies are outsourcing non-core activities, such as HR processes or IT support functions, which frees up employees at headquarters to focus on core competencies like product development or sales.
This trend allows businesses to remain nimble while still providing customers with high levels of service quality--and it gives workers flexibility in how they choose to spend their time (for example, working remotely from home instead of commuting to an office every day).
Contingency planning is an important part of any business. When your organization outsources its workforce or expands its project team, it's critical to have a contingency plan in place. This way, you can ensure that all of your employees are protected should anything happen during their time working for you.
It's also important to review these plans regularly so that they remain up-to-date with current regulations and best practices for maintaining a safe workplace environment.
The best way to manage contingent workers is through a formal HR process. This helps ensure that all laws are followed and that your business is protected against risks that come with employing a non-staff employee.
A good HR process for contingent workforce management should include:
Contingent workforce management is the process of managing your contingent workers. It includes creating an employee experience that aligns with your brand values while adhering to regulatory requirements. Your company can outsource these tasks or build them into its internal HR structure.
Contingent workers are individuals who are not considered employees by law but work for your company as independent contractors or freelancers. They may be hired on a project-by-project basis, or they might be part of a large pool of talent that you draw from whenever you need additional staff members (such as during peak seasons).
Because contingent workers don't fall under traditional labor laws, it's important for companies using them in their operations--including both small businesses and large corporations--to understand how best practice management techniques apply differently when dealing with this type of workforce than they do with traditional employees.
Contingent workforce management is an important part of managing your organization's human resources. It can be an expensive proposition to hire and train new employees, so it makes sense to use contingent workers when possible. However, there are risks involved with using a non-staff employee who isn't on staff full-time or permanently employed by your company. Contingent workers require more oversight than permanent staff because they may not have the same level of commitment or loyalty as those who work directly for your business every day. This means that it's essential that organizations have processes in place to manage their contingent workforce effectively while still meeting compliance requirements such as payroll taxes and insurance coverage
When choosing the right MSP, look for a partner who prioritizes your success, responds quickly, and offers tailored staffing solutions—not red tape.
Koncert delivers scalable MSP solutions that adapt to your business needs, support growth, and increase operational efficiency across your workforce.
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