Hiring Process | 4 Key Strategies to Optimising Contingent Workforce Management

4 Key Strategies to Optimising Contingent Workforce Management

The contingent workforce is heavily utilised in organisations across industries worldwide. 47% of the enterprise workforce was contingent in 2022 and professional staffing spend grew 70% from 2018 to 2022. As more businesses depend on these workers to fill critical roles, they're investing in attracting and retaining them.

However, many face challenges stemming from a fragmented approach to workforce management, including limited visibility, reduced talent quality, inefficiencies, and more. But organisations can implement several proven strategies to overcome these complex challenges and fully optimise their contingent workforce management.

1. Improve Visibility

While it's important to know what's going on inside your extended workforce, many businesses lack the processes and technology necessary to provide accurate headcount reporting and various other workforce analytics. Identifying the appropriate partner or internal resource to assist in gathering this program data and extracting useful information from it is crucial for shaping a comprehensive workforce planning strategy. Acquiring industry-specific and labour market insights will also assist in understanding exactly which solutions will provide the most important business outcomes.

2. Limit Compliance-related Risks

Partnering with an Employer of Record (EOR) with integrated compliance services can greatly reduce risk to the business. Reducing compliance risks requires proper employee classification at every stage of the hiring, sourcing, and management process. Some integrated solutions can also help managers keep an eye on employee assignments and hours, and make sure they're not only adhering to applicable legislation but also fulfilling the terms of their contracts.

3. Augment Cost Savings and Expense Tracking

Making investment in the right payrolling capabilities for your organisation is a key component to optimising contingent workforce management. By doing this, expense tracking, time, and billing will operate with more efficiency, and data will help identify potential areas for cost savings. Furthermore, the latest insights on market rates and salary will aid in establishing bill rates. This will enable your organisation to ensure it is giving competitive offers to the best applicants while at the same time reducing worker compensation costs.

4. Assess Hiring Strategies and Processes

By utilising analytics and management tools, companies can gain a deeper understanding of what is contributing to program success. They can then concentrate on what potential employees value the most, which will improve their prospects of attracting top talent. Furthermore, having a better grasp of the global skills landscape can help develop talent acquisition methods that are more effective and reduce time to fill. An excellent candidate experience may be streamlined and curated with the help of direct sourcing and artificial intelligence (AI) capabilities, which will lead to even more successful hires.

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Magnit

Magnit™ is a global leader and pioneer in contingent workforce management. Our industry-leading Integrated Workforce Management (IWM) Platform is supported by 30+ years of innovation, modern software, proven expertise, and world-class data and intelligence. It enables companies to optimize talent and diversity goals while achieving operational and financial success. With Magnit, companies can adapt quickly to the evolution of work to grow their extended workforce with greater agility, transparency, and speed.