Contractor Management Outsourcing (CMO)

Contractor Management Outsourcing (CMO) is a service that allows organisations to outsource the administration, compliance, and payment of contractors to a specialist workforce solutions partner.

Under a CMO model, Hays manages key operational activities such as contractor onboarding, employment status validation, payroll processing, and ongoing contractor support. This enables organisations to engage contingent workers efficiently while reducing compliance risk, administrative burden, and cost complexity, without increasing permanent headcount

Some organisations opt to keep the management of their contractors in-house, which offers close control over, and visibility of, their contractors.

However, as the volume of contractors grows, the complexity of managing so many moving parts can stretch the capacity of procurement teams, leaving organisations vulnerable to financial and regulatory risks.

Outsourcing the management of your contractors enables organisations to quickly and safely engage any contingent worker, regardless of source or classification.

CMO supports IR35 compliance by providing a structured framework to assess, validate, and manage employment status for contractors engaged in the UK.

Hays applies defined processes and technology to:

• assess worker classification
• validate employment status
• maintain appropriate documentation
• ensure contractors are engaged and paid in line with UK legislation

This reduces the risk of misclassification, helps organisations meet their IR35 obligations, and provides greater confidence that contingent workers are engaged compliantly.

Yes. CMO is designed specifically to support organisations that use pre‑identified or referred contractors.

Rather than sourcing talent, Hays focuses on managing the administration, compliance, payroll, and contractor experience for workers you have already selected. This allows organisations to retain control over who they engage, while outsourcing the operational complexity and risk associated with managing contingent workers

Under a CMO model, Hays manages the end‑to‑end payroll and payment process for contractors.

Depending on the worker’s classification and location, this may include:

• payroll services
• consolidated invoicing
• timely and accurate payment
• support for different engagement models

By combining local expertise with established processes and technology, Hays ensures contractors are paid correctly and on time, while simplifying payment management for hiring organisations

While both models support contingent workforces, they serve different purposes:

• Contractor Management Outsourcing (CMO) focuses on managing the administration, compliance, and payment of pre‑identified contractors, without managing sourcing activity.
• Managed Service Programmes (MSP) typically oversee the end‑to‑end contingent workforce, including supplier management, vendor neutral sourcing, reporting, and governance.

CMO can be deployed as a standalone service or as part of a broader workforce solution, depending on an organisation’s needs.

An effective CMO solution will streamline the management of your workers, enabling you to refocus your efforts and internal resources into supporting strategic priorities.

At Hays, we challenge ourselves to think beyond, so our service is underpinned by market leading technology and unmatched support and development for your contingent workforce.