The Strategic Edge: Integrating Management of Temporary Talent into Your Business Model

Temporary talent management is the process of hiring and integrating temporary workers into a company’s workforce, while still maintaining the legal boundaries between employees and non-employees. These workers are hired to work on a non-permanent basis, either per-project or for a limited time, and they can be part-time, full-time, or seasonal.  

The evolution of talent needs has led businesses to adapt to changes including increasing their usage of temporary talent. These workers are subject to employment regulations that differ from staff employees, requiring a different model for sourcing, engaging, and overseeing their efforts.  Integrating temporary talent management, also known as contingent talent management in a business model has become a norm for Fortune 500 organizations, and it is making its way into middle market companies and higher education institutions as a viable solution to changing staffing priorities while providing much-needed flexibility, specific skill sets, and fast access to talent. 

Where is the Most Growth?  

Over the past two years, we’ve seen an increase in the use of Independent Contractors, workers tied to a Statement of Work (aka a fixed-bid project with specific deliverables and timelines) and workers redeployed through Direct Sourcing, while traditional staff augmentation has declined by 10% each year.  As companies explore the fluctuating demands of the market and strive for excellence in operation, incorporating contingent workforce talent management into their system can play a significant role in their success.   

How does embracing this trend help businesses to stay ahead of the competition? Let’s look.  

Understanding Contingent Workforce Management 

Contingent workforce management involves recruiting, onboarding, managing, offboarding, and re-engaging non-permanent workers such as temporary workers, freelancers, consultants, and independent contractors. Unlike traditional employees, these individuals are hired for specific projects for a certain period, offering businesses agility and flexibility. 

Benefits of Using Contingent Workers 

If you are considering using contingent workers in your business, here are some advantages: 

• Flexibility and Agility – One of the top benefits of these talent sources is flexibility. Temporary workers allow businesses to effectively scale or adjust their workforce according to demand. Whether it’s a project-based need, seasonal peaks, or the need for a particular skill, contingent talent offers the flexibility to adjust manpower needs accordingly. 
• Specialized Skills – An extended workforce combining staff employees with temporary personnel enables you to tap into the best individual to do the job. Looking for someone with specialized skills is not always an easy task, and the resource may only be needed for a limited amount of time. The ability to leverage their skills when needed during a specific project can prove invaluable. 
• Cost-effectiveness – Contingent workers are the best solution if a mid-market business has particular workforce goals with a set budget. The use of temporary talent enables you to avoid costs associated with expensive benefits, annual bonuses and raises, severance costs and more, 

Premier Solutions for Contingent Talent Management 

The use of contingent workers offers multiple benefits for businesses. However, each type of temporary worker is subject to different government classifications and the combination of worker types introduces a level of complexity that affects decisions regarding talent availability, costs, operational efficiency and levels of risk. Your in-house Human Resources may not have the bandwidth or “contingent worker expertise” needed to ensure that the best interests of your company are represented. Consider the use of a professional services firm that specializes in contingent workforce management. Select a firm that provides a flexible approach custom designed to your business structure, contingent workforce usage, culture, and business priorities.  Options that should be made available include: 

Management of Staffing Agencies and Their Contractors 

Service elements include supplier (staffing agency) assessment, contracting, onboarding and performance management; federal and state regulatory compliance; corporate policy compliance; program performance reporting and analysis; and strategic workforce planning, ensuring efficient utilization of contingent talent. 

Management of Internally Sourced Temporary Workers 

The professional services firm provides a legal framework for engaging non-employee workers, particularly in states or countries where a company does not have a legal business presence. The professional services firm serves as the employer of the worker during the engagement, and the service should include   regulatory compliance, worker benefits, payroll processing, worker onboarding and offboarding and more.   This lessens the administrative burden associated with managing and hiring non-employee workers. 

Independent Contractor Management 

“Independent Contractor” refers to a federal or state government classification in which a self-employed individual is engaged to perform services for another entity as a non-employee.  The classification standards vary greatly, creating difficulties for companies to ensure compliance with IRS and other regulations.  The professional services firm may provide a range of services from a one-time “spot check” to determine compliance with applicable regulations to regularly scheduled evaluations to actually contracting the individual contractor(s) on behalf of the entity that will utilize the worker’s services. 

Talent Communities Finding great talent is difficult, retaining talent can be even harder.  A company can enhance its reputation as an attractive workplace by building networks. A talent community takes this concept further by fostering a sense of belonging through ongoing communication with workers who are on assignment or waiting for their next opportunity. This approach enables companies to maintain a steady pool of talent, allowing for quicker placements. 

Workforce Planning and Consulting  

More companies are coming to the realization that planning for the peaks and valleys or specialized skills just makes good business sense, but they may not have the insights or resources to undertake this endeavor. This is where a dedicated, experienced workforce planning and consulting professional services firm can step in. Workforce consulting helps businesses develop or create strategies for optimizing their contingent workforce. This includes implementing workforce analytics, forecasting talent needs, and aligning business objectives.  

Comprehensive Contingent Workforce Management 

Needs evolve over time. Select a professional services firm that enables you to build upon the program over time, adding responsibility for managing additional temporary worker types, expanding to new locations, and including additional functions or departments. Before engaging a professional services firm, explore their commitment to continuously enhance and modify the program to reflect dynamic market conditions and changing business requirements. 

Streamline Your Workforce Needs With nextSource 

Contingent workforce management is not just a passing trend; it is the present and the future of managing talent. Integrating contingent talent into your business model is becoming not only a want but a necessary part of doing business today. 

At nextSource, you will receive innovative workforce solutions that can take your business to the next level, meeting all of the needs stated above. nextSource prides itself in successfully addressing the unique challenges faced by mid-market companies.  Find out how we can provide the solutions you need to manage your contingent workforce by contacting us today.