Every person who’s tasked with managing a contingent workforce always strives to do two things i.e. reduce costs and increase efficiency. The goal being to facilitate maximum profitability. Such a job description also involves handling all challenges that crop up along the way which jeopardize any gains made. Contingent workforce management is a very demanding responsibility that necessitates insight and knowhow from the holder of the position. A manager who’s well informed about all the details pertaining to his/her workforce is best placed to handle any challenges that may arise.
Insight and visibility
Do you know the exact number of contingent workers within your organization? If so, where are they located? Are they managed efficiently? What management style was used to facilitate that efficiency? Managers who has difficulty answering these questions signal a lack of visibility in their organizations. A lack of visibility regarding how many people you’ve employed and how much money is being spent is a recipe for all manner of challenges. Such challenges include
- Needlessly Paying Much More Money Than You Have To
It’s crucial that organizations are aware of what the fair market rates for pay are. Organizations that are ignorant of the amounts they should pay risk making bigger payments than they should. Visibility entails knowing how much you’re paying workers at every level Vis a Vis the amounts that constitutes fair pay in the job market. A thorough investigation into the issue followed by an adjustment of pay rates could result in massive savings.
- The Risks Associated with a Contingent Workforce
It’s important to have a thorough understanding of the risks involved in working with various classes of your contingency workforce. Failure to do so can only result in difficulties farther along the line. A lack of insight on your part provides an opportunity for flouting of rules and regulations by sinister elements in your workforce. However, a workforce that knows it’s being watched will always toe the line.
- Erroneous Decision-Making
The odds of poor or erroneous decision-making in organizations with low visibility is pretty high. Low visibility means information regarding the contingent workforce is either scant or wrong. Using this information for decision-making could prove disastrous. Accurate information is the bedrock where good decisions spring from.
- The Cost of Poor Planning
A big hint of poor planning is organizations scrambling for a contingency workforce because of lateness. Companies that prioritize good planning are well aware of how the labor market is like and align their recruitment with it. The best time to hire is certainly when there’s an influx of available labor in the market. Organizations that linger about till the labor has run out only end up offering more money to hire individuals they could have hired for much less.
Effective contingent workforce management can therefore, only be achieved if visibility and insight into the organization’s practices are prioritized. Once such a goal is accomplished, high profitability, reduced costs and increased efficiency becomes feasible.