More and more companies are looking towards a contingent workforce to manage rising labour costs, source skilled talent and adapt to constantly evolving market conditions. In fact, some analysts believe that some large-scale international companies may even utilize more contingent workers than traditional employees.
The contingent workforce movement is showing no signs of slowing down, and managing this workforce effectively is essential to the future success of many businesses.
It comes as no surprise that many companies are not well equipped to handle this paradigm shift. After all, the traditional workforce has reigned supreme for centuries and still remains a success story for many companies. However, as the economy shifts to a more contingent labour environment, many issues that faces companies trying to make the switch are becoming more apparent.
Governments have taken notice and are reviewing contract labour to ensure workers aren’t being taken advantage of and necessary taxes are being paid. This has resulted in more and more companies searching for quick and thorough solutions to manage their contingent workforce; providing standardized visibility and compliance across the organization. Outsourcing this responsibility to a third party offers a single onboarding process, simplified policy and regulatory compliance and streamlined supervision of appropriate access levels for all workers.
We’ve compiled a list of the most common contingent workforce issues a company may be faced with:
Regulatory & Compliance Risk
Confirm your company understands all legal and regulatory risks associated with the use of a contingent workforce. The inability of organizations to effectively track third party labour puts them at risk of compliance-related risk. Incorrect clarification of workers can lead to audits and penalties. Furthermore, with the growing presence of contingent labour, we can expect to see more regulations for this workforce coming in the future.
Access & Security
Because some contingent workers may not come into the office each day, they can often be subject to less rigid security standards than their traditional employee counterparts. This can lead to less frequent background checks, drug and alcohol testing, and other security inquiries.
Segmented contingent workforce processes amongst company divisions and vast geographical differences are just two examples of barriers that can prevent an organization from knowing exactly who is working for them and what levels of access they possess.
It can be difficult to maximize the efficiency of your contingent workforce without an integrated solution. Utilizing an integrated system can assist in the process of onboarding of workers and tracking spending to ensure workers are safe and efficient.
It’s important that any business utilizing or looking to utilize a contingent workforce be aware of the risks associated with it. Contract labour can be exactly what you need to bring your business to the next level, and BOWEN Group can provide streamlined contingent workforce management solutions to maximize your investment.
Effectively Manage Your Contingent Workforce
Reach out to the BOWEN Group team to manage your contingent workforce regulatory and compliance risk, access and security, technology, visibility and analytics.