In an organisation, the three factors such as spend, risk, and program design plays a critical role in the success of a company’s contingent workforce program. This allows the company to integrate contingent workers as part of a successful workforce strategy.

FREMONT, CA: Undoubtedly, every business has used non-traditional workers to boost their capacity for profiting from marketing opportunities, managing labour costs, and utilising unique and specialised abilities that are not available among full-time employees. Most of the time, companies hire contingent workers on an as-needed or piecemeal basis. When it comes time to count the inventory, they realise they need supply chain specialists. Or they need a data augmentation specialist in response to a request to automate media and marketing purchases. Even while forward-thinking enterprises increasingly recognise the value of strategic management of the flexible workforce, this transactional method is still widely used.

The majority of businesses essentially use contractors, part-timers, and other contingent workers as stand-ins. As a result, they are unable to fully exploit the strategic or economic potential that an agile workforce strategy with progressive management might bring about.


While implementing an extended workforce plan, controlling tail cost is of utmost importance. To maintain coordination and accountability in labour purchases, strict management is required. Orders and requisitions made in violation of agreed-upon terms of service are in opposition to the contingency platform's central tenet.

The cost of individual hiring is typically relatively low and is typically used to hire freelancers or independent contractors for small projects, such as a graphic artist to create a sign or an accountant to do a monthly closure. Yet, the sheer number of erroneous spending events can produce a long tail, accounting for up to 80 per cent of all transactions but just 10 per cent to 15 per cent of accounts payable. These actions frequently go unnoticed and are barely worth the effort to control. They do, however, frequently pose a large liability risk and uncontrolled, non-strategic weakening of a consolidated and optimised workforce.

Connecting finance and program management is the first step in controlling rogue spending. The management should describe and clarify the kinds of contingent workers the business will employ and the positions and divisions for which they are most suitable. Then, HR and accounting can make sure that only these individuals are hired, utilised, and compensated to carry out the authorised tasks. A strict programme management structure that specifies the appropriate usage of each delivery method, such as statements of work, consultants, freelancers, contract workers, and many more is necessary to control maverick spending. Each should be accompanied by detailed scope and scale requirements, necessary credentials, authorised people and procurers, and so on.


To mitigate a company’s exposure, labour policy risk comes in multiple forms and requires constant monitoring. Managers and supervisors will have the vision they require to ensure that the program remains compliant with federal, state, and local labour, worker classification, and safety laws as well as an organisation's policies on diversity, compensation, and other corporate values if they make their hiring and worker procurement process as transparent as they can.

In addition, when expanding their contingent labour programs, businesses must avoid more than just compliance risks. Significant risk is also connected to vendor relationships. The expertise, resources, fulfilment rates, and many more of the labour supplier will heavily influence the outcome of the workforce program. Operational risk can be reduced by carefully evaluating suppliers to identify those with the best mix of relevant industry experience, worker skill fit, order-filling success, and other characteristics crucial to a business. By doing this, firms can boost the likelihood that their flexible workforce will produce high-quality work, punctual delivery, and effective workflow of their clients' demands.

In order to avoid financial risks, additional oversight will be required. In terms of lost orders due to production delays and poor quality, unqualified external workers can cost the company money. Improper worker training and assessment can result in hefty fines from labour, safety, and environmental agencies. In addition, poor oversight of vendors, partners, and negotiations can put a business in financial jeopardy by putting it under unfavourable contracts and making inefficient use of various types of contingent labour.

Individuals can reduce risk by working with vendors and partners who have a strong reputation for compliance and are compatible with an industry and staffing strategy. Businesses must create a vendor management system by standardising qualification, application, and validation processes.

Program Design

Moving to a more mature approach to managing human resources overall entails expanding the agile workforce program. Improved planning for demand contingencies, supply disruptions, scalability, and changing market responses, are some examples of this. Individuals must change their management from reactionary, transactional procurement to strategic, integrated solutions if they want to take full advantage of all the benefits the non-traditional workforce can provide.

The primary choice to be taken is whether to keep the function in-house to maintain maximum control over the workforce management program or whether it is preferable to "stick to the knitting" and outsource the task to a managed service provider.