The Key To Managing Your Contingent Workforce
As international labour markets become increasingly complex and volatile, a strong contingent workforce will provide vital support for businesses to scale and grow as well as manage cost efficiently. More companies are now recognizing the importance of contingent workers and are considering this hiring option as a key to an agile business, offering them the flexibility to scale up or down their workforce.
What Is A Contingent Worker & What Is Contingent Workforce Management?
A contingent worker is an employee hired by an organisation for a fixed period of time, often on a project basis. The contingent workforce comprises contractors, temporary staff and consultants in any form of alternative and flexible work arrangement. These freelance specialists and contract workers perform creative tasks, IT jobs, and even sales and marketing responsibilities. The objective of contingent workforce management is to augment internal talent capabilities and increase the flexibility and responsiveness of the workforce.
Why Hire Contingent Workers?
According to People Matters Global, nearly three in five companies in Asia-Pacific partner with contingent workers to increase talent supply and tackle talent shortages. Operationally, Contingent Workforce Management gives companies the ability to source and procure quality contractors of high calibre, resulting in a contingent workforce that is aligned to specific business needs. The agility of Contingent Workforce Management also allows contractors to be available on-demand to meet immediate talent requirements.
By tapping on the contingent workforce, companies can achieve greater agility and competitiveness in a fast-changing business environment. According to Bain & Company, younger workers want to set their own schedules and accumulate new skills on their terms. This phenomenon is one of the reasons why companies are keeping a smaller core staff of regulars and hiring contingent workers when needed, without having to offer permanent contracts.
How Does Treating Your Contractors Like Permanent Hires Help Your Business?
According to Forbes, many businesses fail to communicate the company’s culture, mission and value proposition to their contingent workers, despite the tremendous growth in the number of these employees. Not conveying the importance of company culture is a missed opportunity for engaging these contractors in their tasks and optimising work performance.
Besides, the growth of the hybrid workforce has caused the lines between the permanent employee and contingent workers to blur, hence there is a need for treatment of all employees to be adapted as well. From improving workforce cohesiveness to improving productivity, integrating your contractors into your company culture brings about many benefits to your business:
✅ Increase Contractor Productivity
Recognising and acknowledging how their role contributes to overall business success helps contractors to feel connected and empowered to do their best work. Research from Gallup shows that engaged employees perform 202% better than those with disengaged teams, hence helping employees develop a sense of meaning at work significantly improves work productivity and overall performance. This results in contractors further adding value to the strategic performance of your business.
✅ Facilitate Team Collaboration
A sense of belonging and inclusivity is key to ensuring employee satisfaction. According to Singapore Business Review, 43% of C-suite leaders engage in integrating contingent workers into their workforce by including contractors in meetings and activities, enhancing work interactions and improving overall employee engagement and morale. This builds a collaborative environment where sharing of resources and knowledge between team members is key to improved work performance.
✅ Retain Contractors In Permanent Roles
Most contractors are employed for their expertise in a niche area but this opportunity may be lost once their contract ends. By treating contractors like permanent employees, there is a higher possibility of them converting into permanent hires which allows the retention of knowledge capital.
Getting Contingent Workforce Management Right With TG
As your partner in managing your contingent workforce, we provide end-to-end dispatching services ranging from recruitment to performance management of all contractors. With our track record of more than 30 years of HR experience, we can help you to achieve greater agility and competitiveness in a fast-changing business environment. Learn more about contingent workforce management and explore other HR services with our expert consultants today! Email us at email@example.com