With non-employee workers (including freelancers, temporary workers, SOW-based labor and contractors) comprising more and more of the average company’s total workforce, the current perception of contingent workforce management is sometimes muddled. Complexity is unfortunately the norm for today’s businesses as they integrate more and more contingent workers into their organization’s projects and initiatives.
As organizations around the globe continue to rely on the talent inherent in non-employee workers, there are a variety of issues that may be ignored. Today’s CPO Rising seeks to dispel some of the most common “myths” regarding the non-employee workforce:
- Contingent workforce management is merely a procurement game. FALSE. Procurement’s grip on contingent workforce management is well-warranted: this function has the expertise, the knowledge and the power to effectively manage the non-employee workforce. However, as the industry evolves, it is critical that today’s CPOs and their teams actively collaborate with human resources to “blend” workforce, talent and spend management under a banner program that prioritizes not only the financial ramifications of non-employee workers, but also the talent impact, as well.
- New sources of talent don’t need to follow the control methods of older sources. FALSE. In days past, the bulk of the non-employee workforce was comprised of talent sourced via staffing suppliers and vendors, as well as independent contractors and professional services. Today’s talent engagement game looks much different: online labor marketplaces, freelancer networks, mobile applications and social networks are all actively contributing talent to the external workforce. And, as these sources become more prominent, it is critical that businesses reevaluate their CWM processes and programs to ensure that talent sourced via new means are following regulations and guidelines to avoid compliance gaps, inflated project costs and improved talent visibility.
- Compliance is not as important as costs or quality. FALSE. For large, enterprise-size companies, there could be tens of thousands of contingent workers on premises at any given moment, from freelancers supporting critical projects to SOW-based services working on recurring initiatives across the organization. While costs and quality are crucial performance areas for the typical program to track, sometimes compliance gets lost in the shuffle. Federal audits, reclassification and co-employment are not desirable issues, and can cost businesses significant financial losses (yes, even millions of dollars) if contractors and freelancers are mismanaged.
Ardent Partners research has found that nearly a third (32%) of today’s total workforce is comprised of non-employees. With that number expected to grow significantly in the years ahead, one thing is clear: as the contingent workforce continues to expand and evolve, businesses must address its nuances and complexities.
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