Does your company have a contingent workforce program? If yes, are you involved with managing it, wholly or in part? What process do you have to bring contingent workers on board, if any? How satisfactory do you find it? If unsatisfactory, have you measured your program against the relevant contingent workforce management best practices? If you accept the status quo and make no move to change the current state of affairs, whether highly satisfactory or deeply troubling, time will pass…but success will elude you!
Before you can decide that your contingent workforce program is kosher and you do not need to seek any enhancements to it, go through this checklist and answer these questions:
The importance of having clear positive answers to each and every one of the above questions makes all the difference between a well-managed and successful contingent workforce program instead of one which is possibly proving more expensive than you ever realized and carries the elements of risk, which could result in risk of maverick spend, joint employer liability, worker injuries as well as classification issues and/or non-compliance issues resulting in charges and penalties.
What ways can an employer/staffing client mitigate the risks and enhance the management of their contingent workforce program? Let these best practices guide you:
Bring in a Managed Service Provider (MSP) : When a contingent workforce program expands exponentially and hiring of contingent workers stops being centrally managed across locations and functions, positions may not get filled on time, budgets may swell beyond reason as each hiring manager negotiates a rate (without seeking any reasonable rebates or volume discounts) and time-to-fill might stretch beyond reasonable expectations. They may also lack the required efficiencies in onboarding/offboarding the temporary workers. An MSP comes in exceptionally useful in managing the relationships with the suppliers, aligning requisitions with open positions, negotiating better rates and improving the hiring metrics beyond recognition. From requisition to onboarding, a MSP can bring process change and enhancement along with cost savings. Some companies choose to manage their MSP internally. If you need help to decide the way ahead, you could get more inputs that can help you decide whether to manage your MSP internally or bring in an external MSP.
Adopt a Vendor Management System (VMS) : Dedicated to enable the management of one’s contingent workforce programs, a VMS is all about non-employees and requisitioning them from staffing suppliers directly, as all of them participate in the system. Most VMSs provide increased visibility into the program, enable communication between stakeholders and enforce compliance by putting them through the process steps as well as maintaining an audit trail of the documentation. Some VMS vendors like DCR swear by innovation and sophistication in the services provided to go beyond others’ common features.
Ensure 1099 compliance : When classifying workers as 1099 (independent contractors), employers need to make sure that they have covered all their bases, and avoiding any misclassification. Non-compliance could mean running the risk of fines, penalties and class action suits.
Failure to manage your contingent program well could expose an organization to the risk of having positions go unfilled affecting performance and productivity or having to pay peak market rates for last-minute hiring or having to hire people who do not meet the required quality required.
If you’re facing any of these issues, the time to get kosher with your best practices is now! Email us at email@example.com to request a demo of Smart Track to see how our innovative system can help alleviate your contingent workforce management issues.
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