The contingent workforce will be growing over the next few years. One study estimates such substantial growth that by the end of 2017, 45-50% of the total global workforce will be considered non-traditional or non-employee. For many organizations, this growth means more opportunity for scalability, skill diversification and greater flexibility. Though the benefits are apparent, how to manage these unique workers is a little more difficult. This is especially true for organizations that span international markets. Thankfully, technology is available to help employers meet those challenges.
Changes to U.S. labor regulations drives employers to rethink their workforce strategies and budget. If your organization spans a few nations, you must be familiar with the different labor laws and guidelines for each country. Keeping all those details straight can be a challenge, but when you add in multiple contingent labor contracts, remaining compliant is no easy task.
With the help of technology, many organizations have found an answer to the complicated process. Vendor management systems provide HR and management departments the ability to systematically organize contracts, payroll and local regulations from one centralized, digital dashboard. From there, leadership can maintain compliance and even automate processes. In fact, the same study mentioned above found that those organizations who enlisted the help of VMS are 55% more likely to have organized strategies for contingent workforce growth.
Do you know what technology you need to make the best compensation decisions? Find out!
To acquire skilled temporary workers, many organizations enlist the help of staffing agencies. While this option offers access to a diverse population of skilled professionals without adding additional strain to your internal team, it might also mean miscommunications in overall strategy, loss of brand control and overspending.
Technology allows organizations to remain hands-on with their staffing vendors without burdening their recruiting, HR or procurement departments. Tools like VMS or MSP provide an overview of the people being hired, open positions and the spend it takes to supply each. When you pair these tools with real-time labor market rate data and analytics, you can better optimize spending for contingent labor hiring and management.
Speaking of real-time market rate data, understanding and building a compensation plan can be another challenge for organizations who employ contingent workers. Like labor laws, compensation is constantly adjusting to meet new needs and trends. Unlike labor laws, pay rate and bill rate can change quickly and without much warning. The continuous shift means that organizations need a solution that acts in real-time and can be tailored to suit specific skill sets, experience level and title.
For those companies who partner with staffing agencies, maintaining a cost-effective workforce strategy can be difficult without data. In many cases, organizations don’t even know how much of their bill goes to the employee (pay rate) and vendor (markup). With a salary and labor benchmarking tool like PeopleTicker, organizations get a glimpse into the current salary and hourly wage expectations of workers in a specific location, with special attention to skill level and set. Understanding the right salary for talent allows businesses to examine their current labor spend and determine how much profit goes to the vendors who hire them. It also provides leverage in negotiating staffing agency costs.
Need a refresher on bill rate vs. pay rate vs. markup? Check out this staffing agency bill rate breakdown.
Ready or not, the contingent workforce is coming. Effectively hiring and managing non-traditional employees should be an exciting opportunity for your business. Whether you’re gearing up for your first step in developing a contingent workforce or merely hoping to see your current strategy expand, PeopleTicker can help your team stay ahead of the right compensation for your employees and budget.