With labor being one of the most essential and sizable investments in business, companies are naturally looking for innovative solutions to get work done more efficiently, at optimum costs. The concept of contingent workforce focuses on the labor pool, where employers recruit candidates based on the requirement.
This pool consists of freelancers, consultants, independent employees, and expert contingent workforce management companies and solution providers. They are hired on a per-project basis, where they either work on-site or remotely.
Contingent workers are not simple temp workers but are skilled professionals that bring benefits to the company while providing their services at reasonable prices. They are highly skilled in their fields. Once the project or task is complete, their service is complete. However, they can be called back when the requirement arises.
To leverage contingent workforce, many companies are looking into Human resource management systems, which can optimize the entire process. If your workforce management is disjointed, optimization of contingent workforce can prove to be challenging and quite expensive.
How does HRMS Meet The Challenges of Managing Contingent Workforce?
Using Human Resource Management Systems to manage a contingent workforce can help yield great benefits to a company and provide substantial ROIs. By streamlining the management process and optimizing the supply and demand for all contingent workers, you can enhance your management efforts by a great deal! Here is how:
Streamline Administrative Tasks
A great HRMS-based contingent workforce management system can free up a lot of time and streamline a lot of tasks that managers struggle with. When less time is spent by managers on employee attendance, recruitment, and job screening, they can spend time improving employee productivity and save on labor costs. An HRMS solution automates redundant, time-consuming administrative tasks that managers spend hours on, so they can focus on the efficiency of the workforce.
When you automate tasks like scheduling, payment, and the management of your contingent force, administrative and labor costs are significantly decreased and a lot of time is saved. A good system handles all manual tasks, automates interdepartmental functions, and tracks employee efficiency, saving the time of not only HR reps but all managers in the company.
Employees are benefited from this system as well and can save a lot of time on manually entering information, planning their day based on company schedule, and opt for flexible training times.
Managing a company’s employees, especially the contingent workforce, manually through multiple channels can increase the risk of error. Managing administrative tasks manually and entering details, calculations, and performance reviews can be challenging as it is.
However, with the contingent workforce who only work on project-basis, finding their files, making updates and changes manually, and making payment calculations can leave a wide gap for errors that can cost the company a lot of money. HRMS systems automate recruitment forms, time-offs, payrolls, and more functions, bringing the room for error down by huge margins!
Identify Best Practices
A great workforce management system helps you store, monitor, compare and evaluate data on the contingent workforce, which helps managers discover the best practices to adopt for their company. This can include training practices, motivation, and employee retention practices, and flexible work culture that can be adopted by the contingent employees.
Understanding the needs, strengths, and weaknesses of these employees can help companies optimize their efforts and allow the employees to feel motivated. This can motivate them to work for the rates you can afford and stay loyal to your company.
The above factors demonstrate how a Human Resource Management System is the ideal solution that companies should integrate to face the challenges brought on by managing a contingent workforce!
Read More on KulFiy: