5 Best Practices for Effective and Efficient Contingent Workforce Management

There are many reasons why a company would need to bring new employees on board, especially during those periods when business is booming, but there are also many reasons why you shouldn’t hire new people full-time. For one, hiring new employees full-time incurs a myriad of financial expenses that you might not be ready for, not to mention that sometimes you need new workers to fill a position for a period of time, after which their services will no longer be needed.

The solution to this problem is to hire contingent workers, also known as external workers, who are not your employees but merely fill the ranks where and when needed. It might sound like a pretty straightforward deal, hiring and managing contingent workers, but this is actually a complex and intricate process that could take your company forward or backward depending on your approach.

With that in mind, there can be no room for mistakes here, so let’s take a look at some of the best practices you can implement yourself to manage your contingent workers efficiently and effectively.

Include contingent workers in the HR lifecycle

Many companies make a common mistake of not including contingent workers in their HR lifecycle. While contingent workers are not your employees and shouldn’t treat them as such, it’s also important to note that you are wasting potential and valuable opportunities by not including them in certain HR processes.

Processes such as onboarding, managing and improving performance, and offboarding are crucial for the worker’s success and productivity and the success of your entire organization. Therefore, it’s important to include your contingent workers in these processes and help them become productive members of your organization from day one through proper onboarding, training, and education.

Strive for excellent worker experience

Another common mistake business leaders make is that they don’t consider the experience of their contingent workers as relevant as the experience of their full-time employees. Yes, it is true that your full-time employees are more important and that their satisfaction should be your top priority. However, you also need to focus on elevating the experience of your contingent workforce if you are to facilitate productivity and achieve better results.

You must optimize the three pillars of employee experience for your contingent workforce as well, and these include technology, workspace, and culture. A company that is inclusive of its contingent workers will see higher communication and collaboration, increased productivity and output, and most importantly, a higher return rate for the most talented workers when the time comes to seek their services once more.

Ensure compliance across the board

Navigating the legal waters when it comes to managing contingent workers locally and abroad can be a difficult task, one that is riddled with risk and potential legal liabilities that could cost your company dearly. You need to ensure complete legal compliance when managing contingent workers, especially in highly regulated regions like East Asia and Southeast Asia.

In these regions, business leaders work closely with professionals like the reputable CXC Global Asia team with legal know-how and experience to ensure compliance across the board. With proper vetting and by using the right compliance platforms, these experts can eliminate all legal risks and help you manage your contingent workforce with ease.

No matter the regions you operate in, whether you’re hiring local or global contingent workers, make sure to work with local experts to maximize compliance and stay on the right side of the law.

Capture performance data for your contingent workers

Companies that want to manage their contingent workers need to act on relevant employee data and insights more effectively. Most of the time, business leaders will focus solely on the performance metrics of their full-time workforce and will pay little attention to their contingent workers.

This can create needless financial stress and cause your entire operation to stagnate, so it’s important to equally measure performance for all your workers. Make sure to compare the performance of your contingent workers with the performance of your full-time employees, and try to uncover the reasons why some might be more productive and successful than others. This way, you will be able to elevate performance across the board and achieve better results.

Improve communication and avoid bottlenecks

Lastly, always strive to improve the communication in your company and between your contingent workers and your full-time employees. This is how you’ll be able to maximize the benefits of hiring a contingent workforce and elevate productivity in your business.

Create a communication hierarchy that will help everyone in your organization communicate seamlessly, and integrate a cloud-based project management tool that your contingent workers will have access to collaborate with others efficiently and effectively.

Over to you

Managing a contingent workforce can be a difficult challenge to overcome, but you can use some best practices to make it a straightforward process. With these tips in mind, you can go ahead and hire contingent workers knowing that they will bring value to your business and take your company to new heights.