Manage HR Magazine | Monday, November 20, 2023
The contingent labor market has grown since the recession, with industries like healthcare, manufacturing, retail, and technology expanding. Employers face challenges like regulatory issues, access to top candidates, and cost-effectiveness. There's fragmented management, higher costs, less visibility, compliance issues, and difficulty finding qualified candidates. Supply chain and procurement departments need to have transparency in their program spending.
Fremont, CA: The contingent labour market has proliferated since the recession, with industries like healthcare, manufacturing, retail, and technology expanding. Large organizations spend up to 30% on contingent workers, making management harder.
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Contingent Workforce Management Barriers
In order to manage contingent workers, employers must adapt their talent management strategies to deal with regulatory challenges and limited access to top candidates.
In the arena of contingent workforce management, there are a few challenges that organizations tend to face:
Management of Contingent Labor is Fragmented
- Contingent labor engagement is challenging for organizations because of individual hiring managers, leading to higher costs, decreased visibility, and compliance problems. Engaging and managing employees becomes more efficient and cost-effective when a single entity like a managed service provider manages them.
Getting Qualified Candidates is Harder
- It's hard for a contingent workforce program to succeed if it's not well managed. Unstructured management can lead to poor supplier relationships and an inability to connect with qualified candidates. A contingent workforce program can be eliminated if it relies too much on one supplier, or it can result in long-term open positions, exorbitant candidate rates, and even long-term open positions.
Misclassification of Workers
- It's challenging for employers to stay on top of updated classification guidelines since misclassifying non-employee labor can lead to fines, penalties, and lawsuits for employers. As hiring managers do not know worker classification, contingent labor programs could get dangerous without an expert.
Program Spending isn't Transparen
- In the absence of transparency within contingent workforce management, supply chain and procurement departments may have trouble figuring out how much was actually spent on labor programs. Employers who don't have a transparent process can't achieve their long-term goals or strategic visions for the program if they don't have a transparent process.
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