Today’s workforce is more fluid than ever, with contingent labor comprising a significant portion of the talent mix in many organizations. Yet, despite the clear strategic importance of these non-employee roles, many HR leaders remain hesitant to engage deeply with their company’s contingent workforce program. However, as more than half of contingent workforce programs are now ultimately overseen by HR, the momentum has already begun to shift.  

HR professionals who act early on this trend can capitalize on their unique strengths to elevate the workforce strategy across the board. Those who wait may find themselves playing catch-up while missing out on opportunities to drive greater value.  

Here are several compelling reasons why HR leaders should take charge — and why they need to expand their view beyond their own building. 

Meeting the full spectrum of workforce needs. With more ways than ever to engage talent, from contractors to service providers, HR’s involvement in workforce strategy is essential. Traditional “employee versus temp” decisions have evolved into far more complex assessments that include independent contractors, freelancers, outsourced support, digital platforms for on-demand talent and now automation and AI. When HR professionals take an active role in contingent workforce management, they can help align all labor strategies with their organizational goals, ensuring the right channel is utilized for the right task. Additionally, HR’s oversight of headcount and workforce allocation makes it ideally positioned to manage contingent resources, bridging the gap between budget constraints and talent demands across every labor category. 

Creating a unified DEI&B strategy. A robust commitment to diversity, equity, inclusion and belonging must extend beyond permanent employees. HR is the natural driver for these initiatives, and organizations are increasingly required to report diversity metrics that include contingent staff. By owning the contingent workforce program, HR can integrate DEI&B goals across all workforce categories, ensuring that diversity is measured and celebrated throughout the organization. This consistent, holistic approach not only boosts DEI&B but also enhances the company’s reputation as an inclusive workplace for all types of workers. 

Leveraging technology for cohesive workforce management. As organizations expand their reliance on contingent labor, integrating contingent workforce data into existing HR information system platforms becomes essential. This alone is not going to increase co-employment risk in the US — that exists anyway. By managing contingent workforce programs, HR can facilitate these integrations, allowing for unified yet independent insights across employee and non-employee populations. This seamless tech alignment supports better workforce planning and enables more effective decision-making, with HR positioned as the strategic owner of all talent-related data. 

Avoiding redundancy and strengthening employer brand. Direct sourcing strategies, which enable companies to engage contingent talent directly, are rapidly gaining traction. HR’s expertise in sourcing permanent talent gives it a unique advantage here, enabling the company to avoid duplicative efforts, maximize its talent reach and begin to remove the intermediaries (except the direct sourcing technology and a PEO organization) that have appeared in most so-called “direct sourcing” initiatives. HR leaders can shape a unified employer brand that appeals to both permanent and contingent candidates, creating a seamless and more cost-effective experience for all talent and minimizing inefficiencies in recruitment efforts. 

Setting guardrails across the workforce. Governance is a critical aspect of HR’s role in any organization, and many of the policies that apply to permanent employees also extend to contingent workers. HR’s involvement in contingent workforce management allows for more cohesive policy enforcement, creating a unified framework for worker behavior, ethics and responsibilities. Furthermore, as contingent workforce regulations grow more complex, HR’s experience in handling compliance issues is invaluable. By managing contingent programs, HR can ensure that regulatory requirements are met and that potential risks are mitigated. 

Mitigating compliance and legal concerns. From worker misclassification to labor law compliance, the contingent workforce brings unique risks. HR, with its established protocols for managing workforce-related risks and close relationships with labor and legal departments, is better equipped than any other department to handle these challenges. By overseeing the contingent workforce program, HR can proactively address potential issues and help avoid costly legal implications, ensuring the organization’s compliance in a constantly evolving landscape. 

Making the case for investment. Effective contingent workforce management often requires investments in tools, resources and processes to drive program improvements. HR, with its budget visibility and financial planning capabilities, is well positioned to advocate for the necessary funding. By taking ownership, HR can ensure that resources are allocated wisely to improve the program’s performance and drive long-term strategic value. 

Looking beyond internal boundaries. Traditionally, HR’s focus has been on the internal workforce. However, to fully realize the potential of today’s contingent workforce in its many forms, HR leaders must broaden its perspectives. External labor is no longer just a side component; it’s a core part of a robust workforce strategy. Keeping up with trends in talent engagement and understanding how other organizations manage contingent labor will enable HR leaders to innovate and stay competitive. Embracing this outside-in view is essential for creating a resilient, adaptable workforce strategy that serves the entire business. 

Early Adopters Gain Strategic Advantage 

As the role of HR in managing contingent labor gains traction, early adopters are positioned for success. HR leaders who take action now can lead their organization’s contingent workforce programs, crafting strategies that align with overarching business objectives and creating an inclusive, forward-looking workforce culture. By stepping into this role proactively, HR will not only enhance its value within the organization but also set a standard for best-in-class workforce management. 

As contingent workforce programs increasingly fall under HR’s domain, HR leaders have a unique opportunity to drive strategic change. The decision to own and manage these programs isn’t merely a question of casual oversight; it’s a chance for HR to unify workforce strategies, strengthen DEI&B initiatives and differentiate and mitigate risk across all labor categories. HR leaders who hesitate may find themselves struggling to catch up in an increasingly contingent world, while those who take charge today will position their organizations (and themselves!) for success. Now is the time for HR to embrace this opportunity and lead with a vision that includes all workers, internal and external alike.