Contingency staffing has become a mainstay in permanent workforce strategies for many companies. There are several reasons for this, including lower costs since contingent workers do not require benefits or paid time off. Companies also gain flexibility with this staffing model. However, companies must develop strategies to integrate contingent workers and make them feel valued in order to maximize their performance and minimize risks like decreased loyalty. Human resources departments play a key role in developing these strategies through collaboration, clearly defining roles, onboarding processes, and effective communication with contingent staff.
Top Five HR Process Integrations That Drive Business ValueSumTotal
Integration is the new currency of HR. Empirical research reveals that improving HR process, technology, and data integration to eliminate silos and facilitate cross-functional reporting affords significant business benefits.
According to SumTotal’s 2010 State of Global People Management worldwide survey of human resources (HR) leaders, organizations with fully integrated HR and talent processes, systems, and data outperform those organizations that have not integrated by 41% across twelve key HR and business operating metrics.
There is little doubt that improving HR integration and eliminating silos affords significant benefits. Based on SumTotal’s global survey data, this whitepaper dives into the top five HR process integrations that provide organizations with the most business value: better internal, talent mobility, decreased voluntary turnover, better workforce alignment to overall business strategy, improved workforce productivity and faster on-boarding (time-to-productivity).
Why are some companies thriving while others are struggling to stay in business? What is the distinctive difference between a good company and a truly great company? The answers to these questions can only be found when looking at what defines the company: its people. The people who make up a company are that organization’s unique and biggest asset. For most businesses, the workforce is also its largest expense, or better put, its largest investment.
At Sage, we believe that employees are the most important component in the quest to improve business results. It makes sense to treat employee-related expenses as an investment in the workforce. Like any other investment, this critical company investment must yield a healthy return.
We call that the Return on Employee Investment or ROEI. This white paper looks into investments that can help a company maximize the value of its workforce, and shows how technology can help improve ROEI and build a more profitable and successful business.
Top Five HR Process Integrations That Drive Business ValueSumTotal
Integration is the new currency of HR. Empirical research reveals that improving HR process, technology, and data integration to eliminate silos and facilitate cross-functional reporting affords significant business benefits.
According to SumTotal’s 2010 State of Global People Management worldwide survey of human resources (HR) leaders, organizations with fully integrated HR and talent processes, systems, and data outperform those organizations that have not integrated by 41% across twelve key HR and business operating metrics.
There is little doubt that improving HR integration and eliminating silos affords significant benefits. Based on SumTotal’s global survey data, this whitepaper dives into the top five HR process integrations that provide organizations with the most business value: better internal, talent mobility, decreased voluntary turnover, better workforce alignment to overall business strategy, improved workforce productivity and faster on-boarding (time-to-productivity).
Why are some companies thriving while others are struggling to stay in business? What is the distinctive difference between a good company and a truly great company? The answers to these questions can only be found when looking at what defines the company: its people. The people who make up a company are that organization’s unique and biggest asset. For most businesses, the workforce is also its largest expense, or better put, its largest investment.
At Sage, we believe that employees are the most important component in the quest to improve business results. It makes sense to treat employee-related expenses as an investment in the workforce. Like any other investment, this critical company investment must yield a healthy return.
We call that the Return on Employee Investment or ROEI. This white paper looks into investments that can help a company maximize the value of its workforce, and shows how technology can help improve ROEI and build a more profitable and successful business.
Focusing on Employee Engagement: How to Measure and Improve ItKip Michael Kelly
This white paper:- Outlines the characteristics of engaged employees- Identifies the traits that engaged, disengaged and actively disengaged employees demonstrate- Explores the costs of poor employee engagement to organizations- Provides suggestions to human resource and talent management professionals on how to gauge employee engagement in their organizations- Offers employee engagement trends and steps to improve employee engagement that HR and talent management professionals can take
Real-time Workforce Planning: Keeping up with business change Bhupesh Chaurasia
Adapting to change is not a new concern, but responding to the increasing pace of change is a challenge many of today’s organizations struggle with. Adoption rates for new technologies continue to accelerate, and each new innovation raises our expectations for how things get done. To keep up with the pace of change of both technology and process, business leadership
must adopt more dynamic decision-making processes throughout every part of the organization – including its people processes.
Describes changing trends of Career Transition in companies including start-ups. The delay in job landing is on account of (i) stigma associated with hiring a laid off employee (ii) lack of support by organization to build employees confidence (iii) lack of mobility on account of house lock , children education(iv)Lack job matching mechanism. Echoes the research of 2012 Nobel Prize in Economics winners Drs. A E Roth and L S Shapely on labour market inefficiencies.
6 best practices to get started on a digital HR strategyAbhishek Sood
40% of HR executives worldwide intend to replace their existing, on-premises HR system with a SaaS tool in the near future.
In this Forbes Insights research report, learn why many HR pros are focusing their vision on leveraging digital HR as a solution.
Discover:
What is driving digital transformation in HR
How digital HR is innovating HCM
12 benefits realized by leveraging digital HR
A tour of available digital HR technology
6 best practices to get your strategy started
White Paper analyzing innovative Human Resources trends throughout different industries and their effects on employee engagement, productivity, and overall morale. As more Millennials enter the workforce, employers are finding it more difficult to increase retention rates and aligning goals to the overall corporate goal. This paper talks directly on those concerns and how industry leaders are improving their own workforces.
Optimizing Your Workforce Productivity & Retention - Human Capital Insights -...ADP, LLC
In this Issue of Human Capital Management Vol. 5: Flexible Work Arrangements: Optimizing Your Workforce Productivity & Retention Five Eco-Friendly Strategies for Global Organizations Data Security Checkup: Protecting Employee Health Information
Throughout the years, there has been a shift from manual labour jobs to office-based work. In fact, in 1981, one out of three men and one out of five women had a manufacturing job whilst, in 2001, this has decreased to one out of five and one out of ten respectively. In addition to this decrease, there was an increase of workers in the service industry which changed the employees’ expectations of their working environment (Building a case for wellness, 2008). Today, employees require more personal services beside health and safety benefits as they are less likely to be injured at work. They are hoping for more flexibility such as the ability to work at home and the flexibility to customize their schedule. When it comes to improving employee engagement and wellbeing, this evolution creates a transformation from a classical managing approach to a more human relations managing approach.
HR Challenges and Solutions - Maintaining Compliance and Mitigating Future RiskADP Marketing
Many companies are facing increasing challenges to stay up to date with risk and compliance. Learn how to take control of compliance and manage risk in your business.
he EIU conducted a survey of 502 C-suite respondents, evenly distributed across four geographic regions in the US to better understand how they prepare for and combat workforce challenges.
Human resource-management-essay-on-attracting-and-retaining-staffTotal Assignment Help
The aim of human resource management essay is to understand the attraction and retention of talent within communication sector organizations followed by its key challenges.
Focusing on Employee Engagement: How to Measure and Improve ItKip Michael Kelly
This white paper:- Outlines the characteristics of engaged employees- Identifies the traits that engaged, disengaged and actively disengaged employees demonstrate- Explores the costs of poor employee engagement to organizations- Provides suggestions to human resource and talent management professionals on how to gauge employee engagement in their organizations- Offers employee engagement trends and steps to improve employee engagement that HR and talent management professionals can take
Real-time Workforce Planning: Keeping up with business change Bhupesh Chaurasia
Adapting to change is not a new concern, but responding to the increasing pace of change is a challenge many of today’s organizations struggle with. Adoption rates for new technologies continue to accelerate, and each new innovation raises our expectations for how things get done. To keep up with the pace of change of both technology and process, business leadership
must adopt more dynamic decision-making processes throughout every part of the organization – including its people processes.
Describes changing trends of Career Transition in companies including start-ups. The delay in job landing is on account of (i) stigma associated with hiring a laid off employee (ii) lack of support by organization to build employees confidence (iii) lack of mobility on account of house lock , children education(iv)Lack job matching mechanism. Echoes the research of 2012 Nobel Prize in Economics winners Drs. A E Roth and L S Shapely on labour market inefficiencies.
6 best practices to get started on a digital HR strategyAbhishek Sood
40% of HR executives worldwide intend to replace their existing, on-premises HR system with a SaaS tool in the near future.
In this Forbes Insights research report, learn why many HR pros are focusing their vision on leveraging digital HR as a solution.
Discover:
What is driving digital transformation in HR
How digital HR is innovating HCM
12 benefits realized by leveraging digital HR
A tour of available digital HR technology
6 best practices to get your strategy started
White Paper analyzing innovative Human Resources trends throughout different industries and their effects on employee engagement, productivity, and overall morale. As more Millennials enter the workforce, employers are finding it more difficult to increase retention rates and aligning goals to the overall corporate goal. This paper talks directly on those concerns and how industry leaders are improving their own workforces.
Optimizing Your Workforce Productivity & Retention - Human Capital Insights -...ADP, LLC
In this Issue of Human Capital Management Vol. 5: Flexible Work Arrangements: Optimizing Your Workforce Productivity & Retention Five Eco-Friendly Strategies for Global Organizations Data Security Checkup: Protecting Employee Health Information
Throughout the years, there has been a shift from manual labour jobs to office-based work. In fact, in 1981, one out of three men and one out of five women had a manufacturing job whilst, in 2001, this has decreased to one out of five and one out of ten respectively. In addition to this decrease, there was an increase of workers in the service industry which changed the employees’ expectations of their working environment (Building a case for wellness, 2008). Today, employees require more personal services beside health and safety benefits as they are less likely to be injured at work. They are hoping for more flexibility such as the ability to work at home and the flexibility to customize their schedule. When it comes to improving employee engagement and wellbeing, this evolution creates a transformation from a classical managing approach to a more human relations managing approach.
HR Challenges and Solutions - Maintaining Compliance and Mitigating Future RiskADP Marketing
Many companies are facing increasing challenges to stay up to date with risk and compliance. Learn how to take control of compliance and manage risk in your business.
he EIU conducted a survey of 502 C-suite respondents, evenly distributed across four geographic regions in the US to better understand how they prepare for and combat workforce challenges.
Human resource-management-essay-on-attracting-and-retaining-staffTotal Assignment Help
The aim of human resource management essay is to understand the attraction and retention of talent within communication sector organizations followed by its key challenges.
Creating Engagement in a Diverse Workforce - Technology tools to help you eng...HeyEmbedMe
According to the Global Human Capital Trends 2016 report, “employee engage-
ment is a headline issue throughout business and HR.” Fully 85 percent of survey
respondents ranked engagement as a top priority, yet only 46 percent reported that they
were prepared to address engagement challenges.1
One of the drivers behind the focus on engagement — which not only concerns HR,
but also has wider implications for the overall performance of an organization — is
the increasing diversity of today’s workforce. From aspiring Millennials to aging Baby
Boomers — working in a complex mix of full-time, part-time, contingent, temporary,
and contract roles — the 21st-century workforce is more diverse than ever, challenging
organizations to build and support a corporate culture that fosters employee engage-
ment. When you pair this diverse workforce with the growing competition to attract and
retain top talent, it’s easy to see why culture and work environment have become key
drivers of employment brand. No matter the age, status, or position of your employees,
how can your organization effectively engage and inspire today’s diverse workforce?
RECRUITMENT AND RETENTION PLAN 1
RECRUITMENT AND RETENTION PLAN 6
Recruitment and Retention Plan
MBA 533
January 25, 2015
Recruitment and Retention Plan
Given the increase in product demand, I would need to hire a number of employees in different functional areas. Since the emphasis of Motors and More is on innovation, growth and product development, the areas that will require a huge number of new employees include marketing and sales, manufacturing, operations, customer relations and HR. In order to meet the 96% output requirement, there will be need for hiring an additional five employees in the manufacturing and operations departments. Because of high automation in the company, this number of employees will be enough in streamlining operations. The employees in the manufacturing and operations departments will be responsible for new product developments and making modifications to guarantee production efficiencies (Arthur, 2004).
There will also be the need for increasing the sales and marketing personnel by 25%, which will involve hiring an additional 6 employees to cater for the needs of the expanding market. Employees in all the departments will come from different demographic backgrounds. Motors and More will also hire two additional customer service representatives. The primary function of these representatives will be responding to and resolving customer queries. Lastly, the HR department will require four additional employees responsible for formulating policies and procedures, conducting employee appraisals and formulating training programs.
The turnover rate at Motors and More has currently been higher than normal. This might be due to a variety of reasons. First, the high turnover rate might stem for unfair promotion practices in the company. Even though approximately 48% of Motors and More employees are minorities, the senior and supervisory positions are primarily held by Caucasian men. This lack of inclusivity might be demoralizing some employees and make them feel detached from the company. According to Truss, Mankin, & Kelliher (2012) lack of inclusivity can lead to high turnover rates. Furthermore, the company might not have proper reward structures for compensating the employees. Failure to provide necessary incentives can reduce job satisfaction and increase the turnover rates.
Lack of flexible working arrangements is another factor that might be contributing to increased turnover in Motors and More. Employees might feel overburdened due to the high expectations to meet consumer demands, a factor that might decrease their commitment at work (Arthur, 2004). The absence of a functional HR Department also implies that the company has deficient training programs. This can also increase turnover rates. It is worth noting that turnover can have negative costs and implications for the org ...
HR departments will become more focused on the outcomes of their actions — the effect
of what they do on the corporation versus the effect of what they do on HR.
Contra Costa County is an organization that I have worked for in the past. Within this PowerPoint presentation I will educate the senior leadership about the benefits of the Staffing Organizations Model. Upon completion of the presentation I highly recommend that the organization utilize the Staffing Organizations Model for the betterment of the infrastructure.
Chief human-resource officers in Europe say a shift to employee-centric policies is long overdue. The pandemic is a big factor in their thinking, but process fatigue has been building for some time.
2. 2ContingencyStaffing:A MainstayinPermanentWorkPlacementStrategy
Contingency Staffing has become more common and more popular over the last few
years. Contingent workers are defined as freelancers, contractors, and temporary employees. The
beginning of this tread of keeping contingent workers in place at organizations happened during
the recession in 2008 and 2009. Though companies have used contingent workers during peak
seasons when extra help was needed, a big production needed extra hands or to cover “life
events” such as vacations, illnesses, or maternity/paternity leave, it is a more permanent strategy
in placed for corporations due to several factors. One of the biggest reasons is cost. Corporations
who place contingent or temporary workers in positions do not pay out for benefits or bonuses.
They do not need to pay for holiday or vacations for these workers. Administration cost goes
down as well since not as much documentation is needed for contingent workers. Secondly,
working contingent worker gives employers more flexibility in their workforce and corporations
are using contingent workers during their growth or expansion of their company. Lastly,
corporations expanding into the global market benefit more from temporary experts, just in time
hiring, and virtually remote workers.
Jim Link(2012) writes in his article, Companies Making Contingency Staffing a
Permanent Strategy, that in 2012, according to the annual Workforce 360 study, 67 percent of
companies utilize contingent workers, which make up 8.3 percent of their workforce-up from 8.1
in 2005 and 6.6 in 2009. This is a number increase of approximately 25,000 jobs a month with
84 percent of employers’ state their temporary staffing have either increased or stayed the same.
(Link, 2012). Rossheim(2011) in his article, Contingency Staffing Trends for 2011 and Beyond,
states that the temporary workforce between 2007 through mid-2009 dropped by 33.7 percent
3. 3ContingencyStaffing:A MainstayinPermanentWorkPlacementStrategy
with the total private workforce dropped by just 5.8 percent according to an analysis by the
Bureau of Labor Statistics. Then in 2010 the temporary workforce rose by about 300,000 to 2.21
million. The Bureau believed by 2012 that contingent employment would return to 2008 levels.
(Rossheim, 2011). As part of the recession, “88percent of employers either maintained their
contingent workers or increased them according to a December 2010 survey by staffing firm
Yoh.” (Rossheim, 2011). According to Accenture’s 2013 “Rise of The Extended Workforce”
report, “to compete in the future, organizations will need to push talent management beyond the
confines of the enterprise wall to include the new extended workforce: a global network of
outside contractors, outsourcing partners, vendors, strategic partners, and other nontraditional
workers.” (Woody, 2013). Also according to Woody’s article, Freelancing in America: Rise of
the Contingent Workforce, the Labor Department recent reports show companies are focusing
more on filling short-term needs and hiring part-time workers. Woody refers to it as the “just-in-
time” model for staffing. It is believed that by 2014 that 60 percent of corporations plan to
increase freelance hiring according to research conducted by Tower Lane Consulting. Some
factors driving the change are the needs for “just in time hiring, temporary experts, and the
virtual reality of remote workers.” (Woody, 2013). The areas of workforce that will see the
increase is the financial industry, defense contractors for the US government, construction firms,
and natural resource companies. “Professional contingent hiring and staffing opportunities are
increasing fastest in the Northeast and in the Southeast, where growth is returning, says Rebecca
Callahan, president of staffing firm SourceRight Solutions.” (Woody, 2013). A decade ago,
author Daniel Pink stated that the United States was rapidly becoming a “free agent nation”.
Researchers from the Aberdeen Group estimated in 2012 that nearly 26 percent of the average
organization’s workforce is contingent or contract-based. They also stated they were growing
4. 4ContingencyStaffing:A MainstayinPermanentWorkPlacementStrategy
rapidly and jumped by 12 percent that year.(Frauenheim, Contingent Workers, 2012).
Christopher Dwyer(2014) wrote 2014: The Year Ahead in Contingent Workforce Management,
where the research study: The State of Contingent Workforce Management believes that over the
next three years there will be a growth by nearly 30 percent in the contingent workforce in many
different categories such as services, consultants, SOW, traditional temporary labor, independent
contractors, etc…Organizations will need to realign their approach to their workforce to
implement strategies that include the contingent worker. Human Resource departments will need
to be prepared to adjust their recruiting, staffing, and training to include these workers. With the
understanding the purpose of these workers is to put them to work faster and efficiently for their
organization.
Human Resource Departments will need to implement strategies to include contingency
workers according to the needs of their organization. “In order to restructure an existing
workforce and include a permanent contingent worker segment, employers need to start with
three critical components to achieve integrated staffing success: collaboration, strategy, and
technology.” (Link, 2012). Collaboration should include decision makers, stakeholders, and
human resource departments. It will be up to the human resource department to address the
issues and create a staffing strategy that shares a unified set of needs and solutions.(Link, 2012).
Conor Smith(2011), president of The BOSS Group, in his blog for Cella Consulting he
recommends some practices and gives tips in his article titled, The “New Normal” in Staffing
Strategies: Contingent Workers. Smith states to first define the strategy and lay out the reasons
the company will use contingent labor. This may require a more refined definition for each
department who will utilize contingent workers. Some of the reasons may include: need to
increase capacity on a project basis or seasonal work, people with specialized skills that may be
5. 5ContingencyStaffing:A MainstayinPermanentWorkPlacementStrategy
needed for a time but not a necessity for permanent full time employment, coverage for full time
employees during vacations, maternity leave, illnesses, and employee resignation, and budget
wise part of the labor force will always remain contingent so more flexibility as the business
changes.
Human resource departments, after developing a strategy plan, must develop relationship
with vendors and freelancers so they are reliable and will provide labor as needed. Dealing with
these workers requires creativity in viewing their talents and abilities. As HR manager, you must
be able to determine if they are the ones that fit your need at this time. Also do they align with
your company’s goals and missions? They cannot simply be a quick fix because this can be
disastrous if they are not committed to either the project or company during their employment.
Building relationships with them will be the key to determine their drive or motivation. Smith
also recommended developing an onboarding plan for contingent workers. “As contingent
workers play a greater role in your workforce, it is critical that you have a plan to properly
onboard them so they are productive as quickly as possible.” (Smith, 2011). Lastly, Smith
recommends that Human Resource and department managers hold their contingent workers
accountable. They are to help meet the company goals in whatever project they are working on
or position they are filling. Link also recommends that HR create a model for future hiring
decisions along with a talent acquisition strategy formalized and documented. Advanced
technology can automate manage the strategic acquisition process which includes new and
innovative solutions and analytics software that will help hiring and help managers more
efficiently with staffing needs.(Link, 2012). Barry Asin, president of Staffing Industry Analysts,
that organizations need to stop setting their contingent workforce to the side and add them to
their strategic workforce planning. In Frauenheim’s article, Contingent Workers: Why
6. 6ContingencyStaffing:A MainstayinPermanentWorkPlacementStrategy
Companies Must Make Them Feel Valued, Steve Youll, human resources strategic planning
analyst for Greif, not only sees companies engaging with highly skilled individual but states that
it is the HR’s responsibility to “attract them, vet the effectiveness of their work, and woo the
good ones back time and again will be crucial.” Companies have purchased software tools called
vendor management system to address their contingent workforce strategy. Other companies
have turned to third-party managed-service providers, MSPs which are staffing services agency.
John Healy, vice president and talent supply chain strategist for Kelly Services Inc, says MSPs
have a responsibility to help their client determine whether their need is for efficient contingent
workers such as for an assembly line or for more professional talent. Creative and talent
professionals will need a more responsive, high-touch relationship. HR needs to look at their
contingent workers as they do their regular employees. They still need to assess performance of
these workers because mediocre and low quality work threatens a company’s efficiency and
productivity. Feedback is crucial especially if the majority of these workers are coming from the
millennial generation that requires it to perform their best. As some companies are relying on
contingent workers for their customer service representatives they must require excellence in
their performance. This is crucial because the customer sees these people as the company’s
people.
In all aspects how a company handles and deals with their contingent workforce is very
important to company success. Human Resources are a key factor in collaboration between the
leaders and this part of the workforce along with it is their responsibility to develop a strategic
plan. However, company executives and managers play a crucial role in their contingent
workforce be beneficial for their company. The reasons behind companies using contingency
workers vary from company to company. Companies must deal with the pros and cons of having
7. 7ContingencyStaffing:A MainstayinPermanentWorkPlacementStrategy
contingent workers in their organization. The biggest pro for companies in today’s economy is
cost. Borowki’s(2008) states in Risk, Benefits of Using Contingent Workers that cost are the most
significant motivation for companies using temporary workers and independent contractors.
Companies do not provide vacation time, holiday pay, sick leave, or health insurance for
contingent workers. The other cost benefit is they are not required to withhold payroll taxes, pay
social security and Medicare takes, or make unemployment contributions. Alongside this is
administration cost. A company participating in a leased employment arrangement saves time
reviewing employment applications, interviewing candidates, and preparing tax withholding
forms and other documentation needed for permanent employees. And also contingent workers
can be fired or let go without the hassle of documentation of infractions or other forms needed
for reasonable cause for firing a permanent employee. As stated earlier, contingent workers can
increase efficient during peak hours, days, or periods of demand and for one-time projects. A
company experiences periods of low demand than can stop using them. For permanent
employees, a feeling of job security: “because workers such as independent contractors and
temps allow you to use labor fluidly and adapt strategies for expanding and reducing hours with
minimal effect on the employment core workforce, regular employees may feel an increased
sense of job security. (Borowski, 2008). Another benefit is recruiting opportunities; contingent
workers are a good resource for recruiting for permanent positions. With these workers already
working for the company, it is easy to evaluate their work performance along with their work
ethics. Do they give this job their all? Are they motivated to give their best for the company?
They also offer a broader talent pool. A company may need an individual with a particular talent
for a special project with a limited duration that do not required hiring a full time regular
8. 8ContingencyStaffing:A MainstayinPermanentWorkPlacementStrategy
employee. Flexibility is a big incentive for companies in hiring contingent workers because they
can increase and decrease staff with economic consequences and minimal legal risks.
The risks for hiring contingent workers are listed by Borowski as decreased in loyalty and
productivity, impact on employees, confidentiality, increased training cost, and status.
Employers are concern that contingent workers are not dependent on employer for their
livelihood or motivated by advancement opportunities. They feel this makes contingent workers
less likely to be loyal, be less productive, and their quality of work will be substandard. In some
organizations, regular employees resent contingent workers. They feel these workers rob them of
overtime or take a regular full time job from someone else. They may also know someone who
was laid off during bad economic times and now that position is being refilled by a temp worker.
Companies do not have a contract with contingent workers so they are free to move to
competitor. Those with specialized skills and the number of expertise is limited can negotiate
with more than one company and can also go to the one who will pay more. Contingent workers
can result in higher turnover which also results in higher training cost. Some contingent workers
feel they are not treated the same as regular employees and feel left out or isolated from the
company and the other employees. They also feel their work will not be recognized or rewarded.
Ed Freunheim addresses the issues between employers need to change their outlook on
contingent workers and how they need to make them feel valued. “Increasing amounts of work
are going to higher-skilled contingent workers-to professionals such as engineers, graphic artists,
and nurses-whose talents can be pivotal for organizations.”(Freuheim, 2012). These same people
are more likely millennials who need more attention than previous generations. Companies that
are going to make contingent workers a mainstay in their organization they must develop a new
relationship with them. “That relationship might be called the ‘arm’s length embrace’.” Even
9. 9ContingencyStaffing:A MainstayinPermanentWorkPlacementStrategy
though they are independent and need that respect, they also need to feel as part of the
organization as long as they are. Ways to make them feel a part of the company are invitations to
social gatherings, improved communication, recognition and rewards when applicable. This also
means a fair wage for them not lower wages because they are only “temporarily”. Brian Kropp,
analyst for research firm the Corporate Executive Board, says, “Organizations need to rethink
their approach. If you treat them as ‘hired help,’ then they will behave as ‘hired help.’”
(Frauenheim, 2012). As more and more contingent workers become independent contractors
with areas of expertise, companies need to value their skills and abilities by paying them what
their services are worth and by giving recognitions when it is deserved. Companies who really
want to benefit from their contingent workforce than they must develop open and complete
communication. If for example, they are working on a portion of a big project, give them the
whole picture so they know how to implement their part to coincide with the rest of the project.
Companies also need to understand this give and take relationship. The company giving the
independent much needed information but also the independent is array of good information and
knowledge.
Organizations have the potential of misclassifying workers. The Labor Board concluded
in their findings that there is no set definition for an employee compared to an independent
contractor. Employers need to evaluate their workforce to make sure they are following
government guidelines for their labor force including contingent workers. Companies can face
significant legal risk if they misclassify an employee as a contingent worker when actually the
courts will classify them as a regular worker. The legal risks they can face are tax liability
because companies do not withhold taxes nor do they pay social security or Medicare taxes for
contingent workers. A company can also face wage and hour violations by not paying minimum
10. 10ContingencyStaffing:A MainstayinPermanentWorkPlacementStrategy
wage or paying for overtime work. Contingent workers risk not be covered by the employment
discrimination statutes. Companies are not liable for work related or workers’ compensation for
contingent workers or do they receive employee benefits. Occupational safety and health issues
along with family medical leave issues are not required for temporary or independent
contractors. Organizations, when it comes to contingent workers, they concentrate on labor costs
and legal compliance. “Microsoft Corp’s landmark $97 million settlement with its ‘permatemp’
in 2000 put the ‘co-employment’ issues on employers’ agenda, and recently the Obama
administration has made worker misclassification enforcement a priority.” (Frauenheim, 2012).
The state of Texas defines an employee as someone an employer exercises direction or control
over and for whom they are responsible for wages and taxes. An independent contractor,
however, is responsible for their payroll, social security, and Medicare taxes and is not subject to
the employer’s direction or control. There is not a clear definition for an employee and the
National Labor Board feels that due to this fact that employers take advantage of the ambiguous
definition to have lower labor cost and not pay taxes or benefits for contingent workers.
The questions that are arising in companies today are whether it is more beneficial for
hiring contingent workers in key situations. “With 56 percent of companies indicating their
increasing concern about an impending skills gap, it is even more important to identify talent
needs and structure the best workforce based on the supply of qualified talent, including full-time
and contingent candidates.” (Link, 2012). Rossheim(2011) also states that industries going
through fundamental changes are using professional contingent labor. Also according to Dr.
Woody(2013), the contingent workforce is going global as companies use independent
contractors in other countries or they outsource their labor such as customer service. According
to the collected data, contingency staffing is here to stay and HR departments will be the
11. 11ContingencyStaffing:A MainstayinPermanentWorkPlacementStrategy
forerunners in developing staffing strategies along with recruiting techniques for this unique job
force. They will need to also have a good training plan in place so these “just-in-time” workers
can began producing for the company as soon as possible. They need to build rapport with this
much needed talent of professionals who have the talent needed for their company at the time
along with developing relationships. Long term relationships does not mean long term
employment but it keeps the communication open so whenever this individual’s talent is needed;
they are willing to come help out the company. In this sense, the time a contingent employee
spends at a company should not only be productive for both but it needs to be a good experience
for the worker for their willingness to continue to work there as needed or to come back when
needed.
In conclusion, motivation is a crucial key in getting quality work from contingent
workers. Their personalities may play a part but more so their feeling of belonging and valued.
They need to feel as an important member of the organization and not as a “second class” citizen.
They need to be implemented into all aspects of the company’s organization as far as the goals
and missions of the company. They need to be included in any gatherings the company has while
they are employed. Any changes in company guidelines or policies that may affect them should
be communicated to them as well. Contingent workers are becoming a mainstay in today’s
workforce due to the economy and immediate needs of the company. Companies are finding it
makes more sense to hire contingent workers when the job or project does not require a
permanent full time employee. Full time employees should look at contingent workers as
fulfilling a need of the moment and not as a threat to their job. Contingent or independent work
benefits those who want a more flexible schedule. Those who do not want to be a part of any
office politics, and treasure the diversity of assignments that comes from working independently.
12. 12ContingencyStaffing:A MainstayinPermanentWorkPlacementStrategy
Those who work as contingent workers involuntarily will also give the company good
performance because their hope is to be a permanent employee. Finally, as companies are
dealing with not only today’s economic issues they are expanding globally. A company who
wants to be competitive in the global market will do so have a large array of people working for
them from permanent, temporary, contractors, and even outsourcing.
13. 13
Works Citied
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Rossheim, J.(2011). Contingency Staffing Trends for 2011 and Beyond. Retrieved from
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Woody, Dr.(2013). Freelancing in America: Rise of the Contingent Workforce. Retrieved from
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contingent-workforce
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Frauenheim, E. (2012). Contingent Workers: Why Companies Must Make Them Feel Valued.
Retrieved from http://www.workforce.com/articles/contingent-workers-why-companies-must-
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Dwyer, C. (2014). 2014: The Year Ahead in Contingent Workforce Management. Retrieved from
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Texas Workforce Commission, State of Texas website:
http://www.twc.state.tx.us/news/efte/ics_contract_labor.html