Contingent workers are part of the workforce but are not employees. Employees work directly for an organization under an employment contract and are paid by salary. Organizations also pay social security taxes and often provide social benefits. In contrast, agency workers work for a company that contracts with the organization, while some workers contract directly with the organization but do not use a statement of work or another contractual arrangement that is not a contract of employment. increase.

 Contractors determine how the work will be done, which may conflict with how the organization wishes the work to be done. This is the main difference between temporary workers and salaried workers and affects how they are classified. 

Why hire a contingent workforce?

Hiring temporary workers can alleviate personnel issues such as overtime. B. If no one can be hired to provide specific roles to cover short or long term absences, or to provide specific skills for a limited period of time, and the organization has no long-term need. After the contract period ends, it can be cheaper to hire temporary workers than to hire permanent workers, especially if the skill is no longer needed by the organization.

Temporary workers are usually managed through a Supplier Management System (VMS). software. However, sometimes they are hired directly, sometimes through recruitment agencies or consulting firms. Organizations may build a talent pool of temporary workers that can be used as needed. 

What is contingent workforce management?

Contingent worker management is the process of managing contingent workers within an organization. Typically, this includes processes related to assigning employees, providing access to equipment and systems, developing and enforcing policies and guidelines, and enrolling contingent workers in training or compliance programs required for the role. will be

Some human resource information systems allow organizations to store temporary employee data so that it can be viewed on organizational charts and accessed by systems such as learning management systems.

As mentioned earlier, VMS is specialized software for managing temporary workers. In 2022 Everest Group named him the leader of Beeline, PRO Unlimited, SAP Fieldglass and VNDLY VMS. Some procurement and supplier management platforms support contractor procurement along with products and services, and some have their own VMS modules. Workforce management software is another category that helps manage temporary workers. 

More info: Contingent meaning