Managing a contingent program effectively requires well-defined policies and business rules that govern engagement, risk, compliance, cost and overall program success. A well-defined policy enables the organization to leverage the benefits of the contingent workforce while minimizing potential challenge. Here are ways the organization benefits.

Standardization and efficiency. Policies enforce and ensure consistency in how contingent workers are hired, managed and paid, promoting impartiality and transparency. A policy standardizes the process for sourcing, selection, onboarding and offboarding of contingent workers, leading to increased efficiency and productivity in your talent acquisition efforts.

Risk mitigation. Policies also enforce compliance with anti-discrimination statutes and labor laws, reducing legal and financial risks.

Policies establish clear expectations for your contingent program, which reduces potential risks like data security breaches or intellectual property theft. Policies emphasize clear and consistent worker classification aligned with relevant regulations which minimizes the risk of legal or financial repercussions for both the organization and the supplier. By adhering to established criteria outlined in the policy, both parties can operate with greater confidence and avoid potential penalties or disputes arising from worker misclassification.

Cost containment. Policies also optimize program costs by defining parameters for pay rates, expense reimbursements and contingent worker engagement durations.

Having defined policies in place can help foster positive working relationships with the organization and contingent partners by outlining clear communication channels, expectations and escalation processes.

The benefits don’t just stop with the organization, however, as suppliers and contingent workers benefit as well.

Quality. A well-crafted policy will boost candidate and talent engagement (see below), which will improve your organization’s standing as an employer of choice and attract better-quality talent.

Supplier Benefits

There are several supplier benefits when establishing a contingent program policy.

Process standardization. Policies standardize the end-to-end process for managing contingent workers. This, in turn, helps mitigate risk and improve visibility. Policies with clear roles and responsibilities can eliminate ambiguity between what the supplier is responsible for and what the organization is responsible for.

Policies also emphasize clear and consistent worker classification aligned with relevant regulations. This clarity minimizes the risk of legal or financial repercussions for the organization and the supplier. By adhering to established criteria outlined in the policy, both parties can operate with greater confidence and avoid potential penalties or disputes arising from worker misclassification.

Additionally, standardized policies outline the organization’s expectations regarding worker qualifications, performance management and communication. With this transparency, suppliers can tailor their services and candidate pool more effectively to align with the organization’s specific needs.

Streamlined engagement. Policies establish communication channels between the organization and suppliers, which fosters collaboration by giving suppliers insight into the organization’s culture, the project’s demands and the preferred modes of communication.

They should outline how the performance of the supplier and their contingent workers will be managed, evaluated and monitored throughout the engagement. This may include performance metrics, surveys, business reviews and processes for addressing performance issues or concerns.

An established policy with guidelines that all suppliers must adhere to provides a level playing field for all program participants.

Contingent Worker Benefits

Organizations that prioritize the candidate experience ultimately attract a higher quality workforce.

The fair and equitable treatment of contingents should be a cornerstone of a program’s policy, guaranteeing a uniform and equitable process for onboarding contingent workers. This entails creating a feeling of inclusion — even in a temporary capacity — by making information readily available, offering training resources and maintaining open lines of communication.

Policies can streamline the engagement between contingent workers, hiring managers and suppliers by outlining everyone’s role and responsibilities throughout the onboarding and offboarding process.

Established performance feedback is another benefit. Policies outline performance management practices, allowing contingent workers to receive feedback on their work through their supplier. This can be valuable for professional development and potentially lead to opportunities for improvement or extension of their assignment.

Managing a contingent program effectively requires well-defined policies and business rules that govern engagement, risk, compliance, cost and overall program success. By taking a strategic, integrated approach, the contingent program policy enables an organization to leverage the benefits of a flexible, on-demand workforce while minimizing potential challenges.