Deloitte calls contingent workers “the cornerstone of today’s workforce.” They define these professionals as workers, not on the company payroll but providing services as needed, including subcontractors supplying workers, such as staffing firms, contractors, temps, and consultants. Today, there are more than 70 million Americans in this gig economy, and by 2027, that number will grow to 86.5 million—more than 50% of the U.S. workforce.
Whether you view the contingent workforce trend as an opportunity or a detriment, the fact is that these workers are here to stay. One of the biggest challenges employers face when dealing with this workforce is having the kind of staffing software solutions to manage this highly mobile workforce.
The Rise of the Contingent Workforce
In recent years, the workforce landscape has undergone a profound transformation with the rise of the contingent workforce. Traditionally, permanent full-time employment was the standard, offering stability and benefits. However, work dynamics have shifted, giving rise to a new paradigm where contingent, or gig, workers play a pivotal role in the global economy.
One of the key drivers behind the surge in contingent work is technology. The digital revolution has enabled online platforms and marketplaces that connect workers with short-term job opportunities. This flexibility appeals to both employers and workers. Employers can tap into a diverse talent pool to meet specific project needs, while workers gain autonomy over their schedules and often explore multiple income streams.
The gig economy encompasses many professions, from freelance writers and graphic designers to rideshare drivers and delivery couriers. Even highly skilled professionals like software developers and consultants embrace contingent work arrangements. This trend has sparked debates about worker rights, job security, and benefits. Many gig workers lack access to traditional employment perks like health insurance and retirement plans, leading to discussions about the need for labor laws and social safety nets to adapt to the changing work landscape.
The rise of the contingent workforce has also implications for businesses. They must navigate a more complex labor ecosystem, balancing the advantages of flexibility with their workforce management challenges. Successful organizations are rethinking their talent strategies, embracing agile approaches to workforce planning, and investing in technology to streamline contingent workforce management.
The Importance of Staffing Software for Contingent Workforce Management
With the increasing contingent workforce, staffing and recruiting software has emerged as a critical tool for effective resource management. As organizations increasingly rely on freelancers, temporary workers, and independent contractors to meet their staffing needs, software solutions designed for contingent workforce management offer a range of benefits that help streamline operations and maximize efficiency.
Staffing and Recruiting Software Enables Efficient Talent Sourcing
Staffing software solutions provide a centralized platform to identify, attract, and onboard contingent workers. It allows organizations to create talent pools, track applicant data, and manage the hiring process more efficiently. With the ability to automate job postings and candidate sourcing, businesses can quickly access a diverse talent pool to fill specific project needs.
Staffing Software Provides Scalable Contingent Workforce Management
Staffing software solutions aid in strategic workforce planning by analyzing historical data and trends. It helps organizations identify peak demand periods, skill gaps, and hiring patterns, allowing them to make informed decisions about when and where to bring in contingent workers.
Staffing and Recruiting Software Enhances Compliance
Contingent workforce management often involves complex legal and compliance issues. Staffing agency software can help organizations navigate these challenges by ensuring contracts, agreements, and payment processes comply with relevant labor laws and regulations. This software can significantly reduce the risk of legal issues and potential financial penalties.
Streamline Onboarding with Staffing Software
Effective onboarding is a crucial aspect of workforce management, especially in today’s world, where businesses rely on a contingent workforce. Staffing software has emerged as a powerful tool to streamline the onboarding process, bringing numerous benefits to employers and workers.
- Efficiency: Staffing and recruiting software simplifies and accelerates onboarding by automating administrative tasks such as document collection, form completion, and compliance checks. This efficiency is particularly valuable when dealing with many contingent workers engaged in short-term projects.
- Compliance: Onboarding involves legal and regulatory requirements, including tax documentation, background checks, and workplace safety training. Staffing software ensures you follow all the necessary compliance, reducing the risk of legal issues and ensuring that contingent workers are properly vetted and trained.
- Consistency: Onboarding consistency is vital for ensuring that all contingent workers receive the same information and resources. Staffing software allows organizations to create standardized onboarding templates and workflows, guaranteeing that nothing falls through the cracks.
- Digital documentation: Traditional paper-based onboarding is time-consuming and environmentally unfriendly. Staffing software offers a paperless solution, allowing for the electronic collection and storage of all necessary documents, making it more eco-friendly and convenient.
- Improved communication: Effective onboarding is also about communication. Staffing software facilitates better communication between HR teams, managers, and contingent workers. It provides a platform for disseminating important information, such as company policies, safety guidelines, and project details.
- Feedback and evaluation: With staffing agency software, organizations can easily gather feedback from contingent workers about their onboarding experience and use this input to continually improve. This iterative approach helps enhance worker satisfaction and retention.
Improved Vendor Management
Maintaining visibility into a contingent workforce’s performance and availability is crucial for effective resource allocation. Staffing agency software offers real-time visibility into worker availability, skills, and performance metrics, enabling organizations to assign the right talent to the right tasks promptly.
How Does Staffing and Recruiting Software Maximize ROI
Organizations increasingly turn to staffing and recruiting software to gain a competitive edge when managing contingent workers. These sophisticated tools offer a wide range of benefits, and one of the most significant advantages is their ability to maximize return on investment (ROI). Key areas of ROI include cost savings, reduced time-to-hire, enhanced productivity, and compliance benefits.
Direct Cost Savings
Managing a contingent workforce can be cost-intensive if not handled efficiently. Staffing software helps organizations optimize labor spend by providing insights into budget allocation, vendor performance, and worker utilization. This data-driven approach enables better decision-making and cost control. Traditional recruitment processes involve many types of expenses, from job postings and advertising to manual paperwork and administrative overhead. Staffing agency software streamlines these processes, significantly reducing costs in several ways:
- Reduced advertising costs: By utilizing job boards, social media, and integrated applicant tracking systems, staffing agency software reduces the need for expensive job advertisements. It also allows organizations to target their ideal candidates more effectively.
- Automated administrative tasks: Staffing software automates administrative tasks such as resume screening, candidate tracking, and interview scheduling. This automation cuts down on the hours required from HR staff, freeing them up for more strategic activities.
- Lowered turnover costs: One of the often-overlooked aspects of cost savings is the reduction in employee turnover. Effective staffing and recruiting software helps identify better-suited candidates, decreasing the likelihood of premature turnover and the subsequent expenses associated with rehiring and retraining.
- Efficient use of resources: Streamlined processes enable organizations to use their resources better. HR teams can focus on building relationships, conducting strategic interviews, and ensuring a smoother onboarding process, ultimately leading to better hires and less wasted time.
Another crucial aspect of maximizing ROI through staffing and recruiting software is the significant reduction in time-to-hire. In the business world, time is money, and every day a critical position remains vacant, productivity and revenue potential are lost. Here’s how staffing software addresses this challenge:
- Faster candidate sourcing: Staffing agency software allows organizations to source candidates more quickly, whether through candidate databases, job board integrations, or AI-powered candidate matching.
- Automated screening: Automated screening features within the software assess candidate qualifications and suitability rapidly, ensuring that only the most relevant candidates proceed to the interview stage. Hiring managers can focus their time and attention on the most promising candidates.
- Improved collaboration: Many recruiting software solutions offer features that streamline communication among hiring teams and their contingent workforce candidates. These collaborative features foster faster decision-making, feedback sharing, and scheduling, all of which contribute to a shorter time-to-hire.
- Predictive analytics: Some advanced recruiting software employs predictive analytics to forecast hiring trends and identify potential bottlenecks in the recruitment process. This proactive approach enables organizations to make adjustments and prevent delays.
Staffing and recruiting software also enhances overall productivity within an organization, further contributing to ROI. By centralizing candidate and job data, staffing software allows for easier access and management of information, eliminating manual data entry, reducing errors, and enabling more efficient decision-making. Communication tools within the software facilitate better communication, with faster response times, better engagement with candidates, and a more positive experience.
Staffing software offers several compliance benefits for contingent candidates, ensuring that organizations can maintain legal and regulatory standards while efficiently managing their contingent workforce. For example:
- Staffing agency software automates compliance checks, such as background screenings, criminal record checks, and verification of professional licenses and certifications. These features ensure contingent candidates meet the necessary qualifications and legal requirements before being considered for placement.
- Compliance often involves extensive paperwork, including contracts, non-disclosure agreements (NDAs), tax forms, and other legal documents. Staffing agency software provides a centralized and secure platform for storing and managing these documents. Staffing software reduces the risk of lost or misplaced paperwork but also makes it easier to access and audit compliance-related documents when needed.
- Many contingent workers operate under specific contracts that outline their roles, responsibilities, and compensation terms. Staffing software can help organizations create standardized contract templates that align with legal requirements, reducing the risk of contract disputes and legal challenges.
- Staffing software solutions often include audit trail functionality, which records all actions taken within the system. This feature provides a clear and time-stamped history of candidate interactions, compliance checks, and document management activities. In the event of an audit or legal inquiry, these audit trails serve as valuable evidence of compliance efforts.
- Compliance with labor laws, including overtime regulations and meal and rest break requirements, is crucial when managing contingent workers. Staffing software can track time and attendance data accurately, helping organizations ensure that contingent workers are compensated in accordance with labor laws.
- For contingent workers in roles requiring specific training or certifications, staffing software can track and monitor these qualifications. Workers are always up to date with required training and certifications, reducing compliance risks in safety-sensitive or regulated industries.
Optimize Your Contingent Workforce with Exelare Staffing and Recruiting Software
Managing your contingent workforce is easier with Exelare staffing and recruiting software. Staffing agencies increasingly turn to our cloud software to manage the complexities of their growing contingent workforce. Request a free demo to see how our staffing and recruiting software can help your business.