News & Views
How well are you Managing your Contingent Workforce?
Added 26th of August, 2013Today, in response to changing economic conditions, employee demands and attempts by companies to increase workforce flexibility whilst managing costs, we are seeing a growing dependence on contractors as an alternative to permanent staff. In late 2010 the Aberdeen Group announced statistics that revealed contingent workers now account for at least 20% of many organisations’ workforce. And this figure looks set to rise.
Now, more than ever before, Corporates are using greater numbers of contractors. This is not because companies are still hesitant to employ permanent staff but because they are finding it increasingly hard to secure people with the appropriate skills for crucial roles.
Corporates are finding they can no longer rely solely on their internal HR to cover all recruitment and staffing issues. With such a diverse mix of workers the administrative burden being shouldered by HR departments can be lessened by outsourcing. And outsourcing the management of contingent staff seems to be particularly on the rise.
Many internal recruitment departments have embraced outsourcing as a way to better manage all facets of employing contractors – reducing costs, providing one single point of accountability, improving risk compliance and freeing up time for HR to concentrate on permanent staffing, branding and company policies.
As organisations start to recognise that a one-size-fits-all approach to workforce management just does not correlate anymore, the benefits of partnering with an external agency are becoming much clearer.
The theory is that if you outsource some, or all, of your contingent needs to a dedicated external company, you will optimise your chances of sourcing, recruiting and managing the best talent in the market (and in times of skills shortages, top talent is becoming increasingly precious). A further, major factor is the considerable cost savings that a company can expect to make.
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