The Contingent Workforce – What is it?

Due to recent financial turbulence, businesses have needed to operate with a more agile workforce, ramping up and down to meet the ever changing market demand.  A contingent workforce provides flexibility, an increase of efficiency and adds to cost control, but management is key. 

So, what is a “contingent workforce”? It most commonly refers to the external workforce which consists of temporary labour from staffing agencies, self-employed or independent contractors and outsourced work to external companies. The make-up of a business’s contingent workforce can change and be different dependant on industry, business type, time of year, and a range of other factors. A contingent workforce is usually made up of four  categories: 

Blog stats

 

1. Employment Agency Workers:

These are non-payroll workers that are hired on a temporary basis through an employment or staffing agency. These are most likely to be specialist consultants or temporary labour that is needed by the business but not as full-time employees.

 2. Independent Contractors:

Independent contractors are similar to employment agency workers but these tend to be self-employed consultants that are sourced and managed by the end client.

3. Freelancers:

Freelancer is a single worker that is sourced to complete one piece of specific work (i.e. designing a new logo). These workers are becoming more popular within the contingent workforce, fuelled by online marketplaces like ‘Upwork’.

4. Service Providers:

This is usually a specific project or function within a business, that is outsourced to a service provider to complete or manage. Service Providers will deliver the project or function via a Statement of Work (SOW) and can be sourced directly by the initial firm or via a third-party e.g. employment agency.

 

Using a contingent workforce provides a range of benefits such as reducing costs and increasing flexibility; however, the benefits provided can often be at a trade-off with an increased level of risk. Risks generally arise due to the fluid nature of this type of workforce in that they are constantly evolving, resulting in increased attention globally from lawmakers.

This is where Managed Service Program, or MSP, providers such as Volt Consulting Group can add value. We make sure your contingent workforce is compliant and being managed effectively to maximise the benefits this workforce can bring to a business, implementing agile solutions that meet the demands of the market and law makers.

As shown in the diagram from SAP Fieldglass (External Workforce Insights 2018), the contingent workforce can and should be a core strategic initiative for any business to achieve its goals. If you would like to further your understanding of this workforce and find out how it can be managed effectively, please contact Shawn Jones (sjones@volt.com ) or Will Dennis (will.dennis@voltconsultinggroup.eu).

Topics: Recruitment

It’s a love hate thing…

Will Dennis

After 18 Year in the recruitment industry (I know, I had a very easy paper round!) My mind sometimes wanders to the “What if” section of my grey matter. It quickly plays with some ideas, like a child discarding the toy and having a brand new cardboard box to play with and then meanders over to the “well why am I doing this” section.



The Times they are a changing (I Think)

Will Dennis

Recently I sat in a seminar and the speaker said “the kids at school today are going to be in jobs that don’t even exist yet!” gasps from the audience at this revolutionary statement as I sat non pulsed with his closer! Is that really a change to what has always happened? For example…..When my parents were at school I’m sure the thought of hiring a Head of cyber security on an hourly rate with his own limited company and a Coffee shop on every corner was hardly the brave new world we thought it would be! 


// Read More



“No” seems to be the hardest word

Will Dennis

What is it with saying No to someone that scares some people? Is it the negativity of the word? Is it the horror that said person or worse client will never speak to you again. After a conversation with one of my colleagues I was amazed that he had agreed to a deadline that was totally unachievable. He knew he wasn’t going to hit it and worse so did the client. This got me thinking, when are the reasons for us to say No or if that’s too harsh for you we can say…maybe later.


// Read More



Benefits of combining MSP with VMS for SOW management

Will Dennis

Confused about the contingent workforce? Read our explanation differentiating between the types of worker this workforce consists of.   Check out our acronym blog on the benefits of MSP with VMS for SOW Management.


// Read More



My move from Luxury Fashion to Business Process Outsourcing

I have just completed my second month at Volt Consulting Group, and believe me it has been a real eye opener. Have I simply exchanged my role in luxury fashion, working with beautifully crafted, products for another?


// Read More



Archives

Links