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Flexible working models are a cornerstone of modern workforce strategy, offering companies the agility to stay competitive in a fast-paced global market. They promote innovation, enhance productivity, and support long-term workforce resilience.
A flexible workforce integrates multiple worker types within an organisation, including permanent staff, temporary workers and contractors. This model provides access to diverse skills precisely where and when you need them, enabling organisations to adapt and quickly scale in response to dynamic business needs.
However, Cpl’s market research shows 31% of hiring managers do not feel adequately equipped to handle situations requiring knowledge of employment law relating to contingent and temporary workers.
The Role of Contingent Workers in a Flexible Workforce
A contingent workforce is an essential component of a flexible workforce. Contingent staff offer unmatched adaptability and access to specialised skills. They are instrumental in helping organisations bridge talent gaps and adapt to fluctuating market demands.
Benefits of a Contingent Workforce
A study by Trinity Business School and the University of Derby revealed that organisations with at least 11% of their workforce comprising contractors are more productive and generate higher profits.
Key benefits of a contingent workforce include:
On-demand expertise: Organisations can swiftly fill skill gaps with specialised talent.
Cost efficiency: Contractors are not a long-term commitment.
Diverse talent pool: The inclusion of various perspectives develops innovation and creativity.
Scalability: Businesses can expand or contract their workforce in alignment with project demands or market conditions.
Flexible Models for a Resilient Workforce
The benefits of a flexible workforce extend to employees as well. Flexible and hybrid working arrangements are increasingly aligned with workforce preferences for varied career opportunities and better work-life balance. Cpl market research shows while 70% of Irish HR managers see it as effective for business, 63% of workers believe flexible and hybrid working has a positive impact on their employment.
By embracing a flexible workforce, organisations can:
Enhance overall productivity
Drive satisfaction among permanent, temporary and contract workers.
Remain agile in an evolving market
Solidify their position as industry leaders
Successfully Managing a Flexible Workforce
Despite its many advantages, the flexible workforce model does introduce some unique challenges.
Key areas to consider include:
Managing role expectations
Performance management
Co-employment challenges
Security and data risks
Cultural Alignment
Below, we explore these key challenges and provide strategies and tactics to help your organisation overcome impediments and maximise the potential of its contingent workforce.
Addressing Misaligned Role Expectations for Contingent Workers
According to a BCG study, globally, 40% of workers experience a gap between their skills and job duties, which presents a particular challenge for contingent workers due to underdeveloped role definitions and limited training. While permanent employees typically receive detailed onboarding and role clarity, temporary workers and contractors are often expected to "hit the ground running" with minimal support. This discrepancy can inhibit their effectiveness and reduce engagement with the hiring organisation and its goals.
To overcome role misalignment, organisations need to develop a full understanding of the role parameters and clearly communicate the need to potential hires.
This involves several key tactics
Precisely Define Job Roles: Clearly define the roles, responsibilities, and end deliverables they are looking to fill.
Recruit for skills: Align employees, particularly contingent workers, with roles necessitating their specific skill sets.
Clarify Role-Based vs. Project-Based Work: Clearly differentiate between ongoing roles and task-specific projects to avoid mismatches and confusion.
Effective implementation requires organisations to:
Clearly articulate job requirements during recruitment to ensure alignment from the outset.
Engage subject matter experts to assess candidate suitability for specific roles.
Provide tailored onboarding and training programs to clarify expectations, responsibilities, and deliverables.
Implementing these tactics helps establish clarity around role and skill requirements, reduces misunderstandings about expectations, and increases job satisfaction.
Effective Performance Management in a Flexible Workforce
Managing performance in a flexible workforce requires tailored strategies to account for differing roles and contributions. Role-based contingent workers benefit from performance metrics aligned with those used for permanent employees in similar roles, as this ensures fairness and consistency. In contrast, project-based contingent workers should be evaluated based on the quality of their deliverables and adherence to service expectations.
For role-based workers, establish clear key performance indicators (KPIs) to align contingent staff's efforts with organisational goals. Measurable benchmarks not only enhance productivity but also track progress and promote accountability.
For project-based workers, well-defined KPIs are essential to prevent miscommunication, provide clarity on expectations, and ensure that project milestones are consistently met.
By adopting role-appropriate performance metrics and leveraging KPIs effectively, organisations can drive cohesion and performance across a diverse and flexible workforce.
Addressing Co-Employment and Communication Challenges
Flexible workforces require careful coordination of responsibilities and communication to ensure seamless integration. Through our client partnerships and reach with over 6,000 clients Cpl has found that while the HR management of a contingent workforce lies with their direct employer, task management and control of their work typically sits with the organisation they are assigned to. This duality can lead to uncertainty among managers and workers regarding roles and communication, potentially leading to dissatisfaction, reduced productivity, and co-employment challenges.
Ambiguities in supervision and responsibilities may occasionally overlap between the worker's direct employer and the client organisation, underscoring the value of clearly defined guidelines. Such confusion can impact worker morale and hinder effective collaboration.
To overcome these challenges, organisations should prioritise the following strategies:
Define Supervision Guidelines: Establish clear demarcations of responsibilities between the direct employer and the client organisation, ensuring all parties understand their roles.
Implement Structured Communication Channels: Create well-defined processes for addressing operational and HR-related concerns to streamline communication and prevent misunderstandings.
Differentiate Performance Metrics: Clearly distinguish how employee and contractor performance will be measured, tailoring evaluations to the nature of the role.
A transparent, structured approach allows organisations to navigate the complexities of co-employment, promoting collaboration and enhancing worker satisfaction.
Mitigating Security and Data Risks in a Contingent Workforce
The temporary nature of contingent work, combined with equipment issuance, heightens the risk of security issues.
As with permanent staff, insufficient onboarding and a lack of security oversight can further amplify the potential for data vulnerabilities, making security a critical concern in managing a contingent workforce.
To address these risks, organisations must adopt robust security protocols tailored to the unique challenges of managing contingent workers. Key strategies include:
Tailored Training Programs: Provide contingent staff with training on IT and data security protocols to ensure they understand organisational expectations and compliance requirements.
Efficient Equipment and Account Management: Implement strict processes for issuing and reclaiming laptops, devices, and access credentials to reduce the risk of data exposure.
Collaboration with Talent Providers: Work closely with talent solution providers to align on security expectations and ensure the suitability of candidates.
By reinforcing security measures and maintaining vigilant oversight, organisations can protect sensitive data while effectively integrating contingent workers into their operations.
Enhancing Cultural Alignment and Engagement for Contingent Workers
Excessive turnover rates among contingent workforces often stem from a sense of disconnect and exclusion, which can disrupt project continuity and inflate onboarding and training costs. Many contingent employees feel disengaged due to being treated differently or disrespectfully, excluded from employee engagement activities, or assigned unchallenging, lower-level tasks. This lack of cultural alignment and engagement not only diminishes contingent staff's sense of belonging but also impacts organisational productivity and morale.
To address these issues and to create a more inclusive environment, organisations can adopt strategies aimed at enhancing engagement and cultural alignment for contingent staff:
Promote Respect and Equity: Treat contingent workers with the same respect and consideration as permanent employees, ensuring they feel valued and appreciated.
Encourage Team Integration: Include contingent workers in team activities, provide access to resources, and involve them in decision-making processes where appropriate.
Assign Meaningful Work: Allocate tasks that align with their skills, offering opportunities for them to contribute meaningfully and demonstrate their value.
By creating a supportive and inclusive work environment, organisations can enhance cultural alignment, reduce turnover, and optimise the contributions of their contingent workforce.
The Future of Flexible Workforces
A well-managed flexible workforce offers organisations the adaptibility, diversity, and resilience needed to thrive in a rapidly changing world.
However, to address the unique challenges associated with a flexible workforce model and truly leverage its benefits, businesses may need to turn to a seasoned external partner.
For over 20 years, Cpl has served as a trusted implementation and management partner for flexible workforce models across diverse industries, including Public Sector, Technology, Financial Services, Life Sciences, and Healthcare.
Our proven track record spans MSP, RPO and BPO solutions tailored to each client's unique needs.
Discover more expert insights from our latest whitepaper, Navigating the World of Contingent Workers. Click here to download your free copy today.