The Biggest Concerns in Contingent Staffing
The following is a preview of a report by the Contingent Staffing event series covering hybrid workforces, entitled "Managing the Hybrid Workforce in 2022 and Beyond." You can download the full report here.
When operating a contingent staffing program, there are many moving parts to consider. Managers must define the scope of each employees’ role. They must also attract and vet candidates, just as they must track their contingent employees’ progress and performance.
Nonetheless, managers’ responsibilities must also include compliance. The role of contingent workers, freelancers, and contractors has come under intense scrutiny in recent years, and organizations that fail to categorize their employees correctly can be subjected to steep fines and penalties.
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Regulations Are a Top Concern
Most of the respondents (52%) are concerned about pending regulations regarding hiring and classifying freelance or contract-based workers.
In the context of employment, a contractor is usually an independent professional who provides services to organizations temporarily. They are typically hired to work on specific projects or tasks and are not considered to be part of the organization’s regular workforce.
On the other hand, employees are individuals who have a more permanent relationship with the organization they work for. They are typically hired to perform specific roles and duties within the company on a full-time or part-time basis. Unlike contractors, employees usually have more job security and benefits, such as healthcare and retirement plans.
The distinction between these two types of workers is important because contingent workforce leaders are approaching contingent staffing in hybrid work environments differently than they would have in the past. With the rise of the gig economy and the increasing popularity of flexible work arrangements, more workers are classified as contractors than ever before. This has led to some challenges for employers, who must now determine how to manage a workforce that is more diverse and decentralized while also staying compliant.
Cost, Training, and Job Performance Are a Concern for Freelancers
Much of the challenge lies in how managers integrate freelancers, contingent employees, and full-time employees into the workforce. Indeed, 31% of the respondents say compliance is a concern when considering how they will integrate freelancers into the workforce.
Nonetheless, the respondents’ biggest concerns are cost (37%), training and onboarding (37%), and job performance (33%). Contingent workforce managers will need tools to streamline and organize processes like onboarding, payments, and performance tracking. This will help them maintain the value of their contingent staff while efficiently training them and keeping their programs compliant.
Next-Generation Staffing and Hybrid Work Programs
Next-generation staffing and hybrid work programs are likely to be characterized by formalization and digitization. The results of this study indicate that most staffing leaders are interested in improving workers' quality and engagement, enhancing visibility, and addressing compliance risks.
Nonetheless, some companies are just beginning to explore contingent staffing, hybrid work, and remote work. There are also key concerns about the costs of integrating contingent workers like freelancers, and what the widespread use of contingent workers could mean for the organization’s compliance concerns.
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