Embracing the boundless workforce: how to integrate your contingent workers

There’s little doubt that contingent work is on the rise. The global contingent workforce management market was valued at $171.5 billion in 2021, and is forecasted to reach a staggering $465.2 billion by 2031.

In a world of work defined by on-going skills shortages, rapidly evolving technologies, and evolved ways of working, the agility afforded by the contingent workforce could be too good to pass up. But once you have decided to engage contingent workers – and successfully develop a strategy to source their services – another challenge remains: namely, integrating them into your workforce.

Leaders looking to leverage the flexibility of temporary talent must carefully consider how non-traditional professionals fit into their current ecosystem – how can their unique talents and employment status be harmonised with that of their permanent workforce?

Why contingent work is on the rise

Contingent workers have historically been associated with seasonal hiring and blue-collar roles – but the past few years have proven notions such as these to be outdated. Fast forward to 2024, and it’s clear that organisations are increasingly reliant on this ‘boundless workforce’ to overcome challenges both unique and ubiquitous.

The contingent workforce represents a valuable pool of niche and in-demand skills, with many of its professionals seen as experts in their field. Whether it’s overcoming skills gaps, keeping up with technology’s break-neck pace, or improving your resilience to global risks, non-permanent workers are becoming an enduring fixture in modern workplaces.

According to a workforce report surveying over 2,000 global leaders, 65% expect their organisation’s use of contingent workers to increase. What’s more, Deloitte reports that some large companies estimate nearly a third (30%) of their procurement spending is aimed at contingent workers.

While contingent workers are becoming increasingly valued, they’re often mismanaged. Poor integration strategies can negate their potential business boons and expose organisations to a range of risks. So, what steps can you take to successfully bring your contingent workers into the fold?

Key steps to successfully integrating contingent workers

Consolidating freelancers, consultants, contractors, part-time staff and other non-permanent professionals into your main workforce can be a complex process – one that might require you to redefine entrenched organisational behaviours. Here are some strategies you can deploy to ensure a seamless integration:

1. Consider your ‘contractor value proposition’:

It’s vital that your contingent workforce is clearly differentiated in a legal and HR sense – but this shouldn’t come at the cost of their belonging and operational effectiveness. Organisations often tout their employee value proposition (EVP), but tend to neglect their contingent workers’ experience. An effective ‘contactor value proposition’ (CVP) could be crucial to the engagement and retention of your contingent workforce, as well as the sustainability of your talent pipeline.

When constructing your CVP, it’s worth considering these key points:

• Development opportunities: from providing your contingent workers with dedicated training to offering meaningful work opportunities, investing in their skills and talents will increase their sense of worth and make them feel like less of an auxiliary unit. Moreover, contractors will appreciate the chance to build out their portfolios with experience working on exciting projects.
• Flexible working patterns: this can make or break your rapport with non-permanent workers, who will likely expect a level of control and freedom over their working hours. It’s therefore vital that you facilitate a flexible working model that can compete with other organisations’ offerings.
• Highlight your USP: what separates your organisation from others? Whether it’s your green credentials, impressive client base, or cutting-edge technology, be sure to communicate your key differentiators. Where legally viable, you might even consider offering your non-perm workers specific, non-traditional benefits, such as retainer agreements or on-demand pay.

However, a clear understanding of how to train, accommodate, and engage your non-permanent workforce requires your complete visibility over a range of metrics. And in more complex and disparate workplaces, having access to the right technology is a must.

2. Upgrade your tech to increase transparency:

Operating without clear oversight of your contingent workforce limits informed decision-making and compliant management, reducing cost-effectiveness and making it harder to identify potential risks. It’s therefore crucial that you have the right technology and tools in place to install visibility over your non-permanent workers and make data-driven decisions.

While a Vendor Management System (VMS) isn’t a new concept, advances in tech have made it possible to analyse a range of metrics, such as performance, pay rates and market trends. Moreover, developments such as dynamic data dashboards and integrated artificial intelligence (AI) have unlocked access to predictive data and insights, leaving no stone unturned when it comes to understanding your contingent workforce.

However, evaluating the best tech tools – and consolidating them into your current legacy systems – is its own challenge. To overcome this obstacle, organisations are increasingly leveraging the resources of a strategic management partner, who can provide access to the tech you need at a fraction of the time and cost.

3. Partner with an MSP expert

While the above strategies can help, effectively managing a blended workforce can go beyond an organisation’s technological capacity and administrative scope. And even with a dedicated HR function, staying on top of the latest regulations, market shifts, and emerging tech can prove burdensome at best, while the absence of a clear strategy could expose your company to financial, legal, and even reputational risks.

This is where Hays’ Managed Service Programme (MSP) can be invaluable: an end-to-end, cost-effective management solution for your entire contingent workforce. You’ll benefit from a range of data-driven services – including supplier performance management, consolidated invoicing, and risk mitigation – with access to our cutting-edge technology and leading market intelligence.

By leveraging an industry-leading MSP solution, you can focus on your core business activities while ensuring that your contingent workforce is well-integrated and managed efficiently.

An agile workforce awaits – what’s your next move?

Contingent workers can bring diverse skills, flexibility, and innovation to your organisation, driving your business forward in today’s competitive landscape. But to truly leverage these benefits to your advantage, being able to break down siloed ecosystems and gain greater insights into your contingent workforce is imperative. Along with the necessary technology and partnerships, this might require organisations to redefine their relationship with contingent workers, moving beyond being transactional in nature to strategic.

In an idealistic world of work – one where businesses take a total talent approach – labels such as ‘contingent’ or ‘permanent’ might even be cast aside entirely, replaced instead by the skills and expertise an individual can bring. For now, though, business leaders who can effectively harmonise their diverse workforces today will be best equipped to take on the challenges of tomorrow.

Reconsidering your contingent workforce strategies? Get in touch with one of our experts today, or explore how our MSP services can help you reach your agile talent ambitions.