Contingent Workforce Management: (The Essential Best Practices Guide)

Contingent Management: (The Essential Best Practices Guide)

If you’re looking for a guide on managing your contingent workforce, you’ve come to the right place. This blog post will discuss the essential best practices you need to follow to get the most out of your workforce.

Hiring contingent workers may be the perfect option for your business. This article will also help you decide if contingent workers are better than permanent employees for your situation. So, let’s get started…

What Is Contingent Workforce Management

A contingent worker is someone that is contracted to work for a company on an as-needed basis. This type of staffing allows companies to bring in extra help without the hassle and expense of hiring full-time employees.

When it comes to management, this includes finding and hiring staff, managing payroll, onboarding and training contractors, monitoring performance, and more. It is crucial to have an effective strategy in place for managing your workforce if you want to be successful as a small business owner.

Hiring Contingent Workers (The Process)

The process begins with an assessment of the organization’s needs and requirements. These may include an analysis of present staff levels, including qualifications and experience; an evaluation of what skills are needed to achieve organizational goals; and an assessment of whether existing staff members have the necessary skills to meet these needs.

Once this has been done, it will be possible to identify gaps between current staffing levels and organizational requirements. This can then be used by managers to determine how best to fill those gaps with contingent workers who possess the necessary skills.

Next comes planning: contingency plans need to be made for each contingency situation so that there are no negative consequences when employees leave unexpectedly (for whatever reason). For example, if one employee leaves unexpectedly then another one should take over their tasks until they find someone else who can take over from them too – this way there’s no disruption in operations at all!

Contingent Management Software & Services to Help Your Business

One of the best ways to ensure you get the most out of your workforce is to invest in a formidable contingent workforce management software or service. This can help you track and measure key performance indicators (KPIs), manage payroll and onboarding, and provide analytics on the effectiveness of your contingent workforce.

Fiverr is also an excellent platform to find contingent workers. Rather than hiring permanent employees for a short-term task, this freelancing platform connects you with various talented individuals.

Third-Party Workforce Provider

Another vital factor to consider is adhering to local and federal laws regarding contingent workforce management. This can include payroll taxes, workers’ compensation, insurance coverage, and more.

Make sure you familiarize yourself with all relevant regulations in your area before hiring any contingent staff or utilizing a third-party workforce provider.

What Are The 5 Key Elements of Workforce Planning?

1. Job Analysis: A job analysis is a tool used to assess the requirements of a given job and determine its essential functions. This includes tasks, duties, skill sets needed, the knowledge required, and more. Imagine how difficult it would be for a contingent worker to complete a task if the job description was unclear.

2. Forecasting: This should include data points such as current and future trends, analyzing industry data, and anticipating global economic changes that may affect hiring decisions. No one has a crystal ball, but staying informed is still important, even with the flexibility of independent contractors.

3. Recruitment: This HR process includes calling candidates and asking for trial runs or interviews. This hiring process differs for every company culture. but for non permanent employees, reviews of their past work are often a part of this.

4. Training: Once contingent personnel has been recruited, it is vital to provide adequate training so they can perform their roles effectively and safely. Even though this talent pool has the experience, your company’s job listing may require advanced skills that gig workers haven’t been accustomed to yet.

5. Retention: The last step in workforce planning is to focus on retaining contingent personnel. Even though they aren’t permanent workers, providing development opportunities can help reduce your staffing needs and ensure that skilled workers are a part of your company as they are invaluable assets.

What Is An Example of A Contingent Worker?

Temporary workers, freelancers, and contract workers are all examples of contingent workers. Temporary workers are hired on a short-term or project basis to meet an immediate need. Freelancers are independent contractors who work independently. Contract workers, also called consultants, provide specialized services for specific projects on an agreed-upon timeline and rate.

Permanent employees can also be classified as contingent workers if hired temporarily or with the understanding that their employment is at will and could be terminated at any time. By not being bound to an employee, it creates flexibility within the company culture.

Finally, there has been much discussion in recent years of the “gig economy” and its implications for workforce management. This term refers to online marketplaces such as Uber, TaskRabbit, and the aforementioned Fiverr, where employers hire workers on a project-by-project basis.

Some believe that this will dominate as contingent workers have more freedom from a stringent job role at a company. Talent can be auctioned to the best businesses.

How To Effectively Manage Contingent Workers

Effective contingent workforce management involves more than just finding and hiring suitable personnel. It also involves managing them effectively and using practices that can help ensure their safety, performance, and satisfaction. 

Whether you go down the route of nonpermanent employees or permanent workers, it’s still important to form relationships with those that help your business run smoothly. Vendor management system (VMS) software is helpful for companies with contingent personnel. 

Companies like Nexus Contingent Workforce provide full-service contingent workforce services, including recruitment, onboarding, training, and more. Working with a full-scale service may be helpful if you plan on working with many different contingent workers.

Make Contingent Workers Part of the Team

Onboard contingent workers like any other employee. Make sure they feel welcome and give them the necessary tools and training to do their jobs effectively.

Foster a positive work environment by recognizing workers for their accomplishments and providing opportunities for career growth. Ensure you have an effective system to manage payroll, benefits, taxes, etc.

HR and procurement functions should also be consulted regarding contingent workforce management. This will ensure compliance with all applicable laws and regulations (which is essential to the sustainability of your business).

Full-time employees should be kept informed of contingent workforce management practices. This will help ensure that everyone understands the importance of working together as a team to get results.

Finally, it’s crucial to have an effective monitoring and analytics system in place to track the performance of your contingent workforce. This will help you decide on hiring, training, wages, and other key areas.

Prioritize Communication to Help With Assimilation

Labor laws are in place to protect contingent workers from discrimination and mistreatment. It’s important to ensure you are aware of these laws and abide by them.

Managed service provider (MSP) software can also be utilized to manage contingent workforce performance and compliance. This software helps employers by managing the recruitment, onboarding, time tracking, and reporting processes of contingent personnel.

Talent acquisition and management should also be seen as ongoing processes that involve open communication between the employer and contingent workers. A clear understanding of expectations is essential for successful assimilation into the workforce.


By following these best practices, you can ensure that your contingent workforce management is effective and efficient. Onboarding a contingent workforce may require unique hiring processes with alternative work arrangements.

Employing contingent workers vary significantly depending on the company culture and leadership of the company, so keep that in mind!

Investing in the right software and services, understanding relevant laws and regulations, and finding the right specialists (consultants) can help you get the most out of your contingent workforce. With a comprehensive strategy, you can increase productivity and maximize the benefits of outsourcing your contingent work.

If you have any further questions or would like to discuss how to optimize your contingent management, please don’t hesitate to share your thoughts in the comments below. Being able to manage contingent workers is a business skill in itself. Make sure to check out our complete business blog for more info!

A contingent workforce might not be right for you. This article goes into more depth about onboarding employees if you decide that an independent contractor isn’t your preference.






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