10 Critical Areas to Improve in Your Contingent Workforce Program

Contingent workers—those employed on temporary, project-based, or flexible arrangements—are becoming a key component of today’s workforce. According to various industry estimates, 30–40% of the global workforce now operates on a contingent basis, and this trend is expected to rise.

This approach brings clear benefits such as cost savings, flexibility, and access to specialized skills. However, without proper management, these advantages can quickly give way to compliance issues, unnecessary costs, and reduced productivity.

To help you unlock the full potential of your contingent workforce and avoid common pitfalls, here are 10 critical areas to focus on:

1. Talent Acquisition & Onboarding

Why It Matters: Quickly finding the right talent can be the difference between meeting deadlines or falling behind.

Common Pitfalls:

Lengthy job postings
Poorly defined selection criteria
Inconsistent onboarding processes

Action Steps:

Streamline Recruitment: Leverage targeted job boards and reputable staffing agencies to reduce time-to-fill.
Standardize Onboarding: Provide clear documentation, set expectations, and offer training from day one.
Ensure Compliance: Verify eligibility and align documentation with labor laws before contracts are finalized.

2. Engagement & Retention

Why It Matters: Engaged contingent workers are 26% more productive (Gallup) and more likely to renew contracts, saving replacement costs.

Common Pitfalls:

Treating contingent workers as outsiders
Lack of recognition or growth opportunities

Action Steps:

Foster Inclusion: Involve contingent workers in team activities and recognize their contributions.
Offer Development: Provide access to skill-building or online courses.
Maintain Communication: Create open feedback channels and address concerns early.

3. Performance Management

Why It Matters: Clear goals ensure resources are allocated to high-performing talent.

Common Pitfalls:

Vague performance metrics
Lack of regular feedback

Action Steps:

Define KPIs: Set clear, role-specific performance indicators.
Schedule Check-ins: Monthly or bi-weekly reviews keep work on track.
Recognize Excellence: Simple acknowledgments can significantly boost morale.

4. Time & Attendance Tracking

Why It Matters: Accurate time tracking reduces payroll issues and supports effective budgeting.

Common Pitfalls:

Manual tracking errors
Time theft or unapproved overtime

Action Steps:

Use Automated Tools: Implement digital timesheets or biometric systems.
Monitor Compliance: Audit time logs to ensure alignment with labor laws.
Set Clear Policies: Establish rules against misuse and enforce them.

5. Payroll & Benefits Administration

Why It Matters: Timely, accurate payroll builds trust and avoids legal complications.

Common Pitfalls:

Miscalculations or delays
Tax compliance issues

Action Steps:

Automate Payroll: Use platforms that calculate deductions and generate invoices.
Stay Competitive: Offer market-rate compensation, especially for niche roles.
Ensure Legal Compliance: Regularly update knowledge of federal and state labor laws.

6. Risk Management

Why It Matters: Misclassification lawsuits and data breaches pose serious threats.

Common Pitfalls:

Vague contracts
Inadequate insurance
Missed background checks

Action Steps:

Conduct Risk Assessments: Identify legal, financial, and operational risks.
Secure Insurance: Confirm all liabilities are covered.
Run Compliance Audits: Review processes quarterly for alignment with regulations.
Tip: Tools like FlentisPRO VMS help monitor credentials and expiration dates.

7. Data Privacy & Security

Why It Matters: Contingent workers often access sensitive information.

Common Pitfalls:

Unrestricted system access
Failure to revoke credentials
Weak data protection policies

Action Steps:

Control Access: Only grant permissions needed for the role.
Comply with Laws: Follow GDPR, CCPA, and other data regulations.
Enhance Cybersecurity: Regularly update software and train staff.

8. Cost Management

Why It Matters: Without oversight, contingent workforce spending can balloon.

Common Pitfalls:

Hidden agency fees
Redundant or misallocated roles

Action Steps:

Track Budgets in Real-Time: Use analytics to monitor labor costs and invoices.
Cut Costs Strategically: Use preferred vendors and negotiate bulk rates.
Measure ROI: Ensure each hire supports business outcomes.

9. Vendor Management

Why It Matters: Over 70% of organizations use multiple staffing vendors—consistency is key.

Common Pitfalls:

Vague contracts
Slow vendor response
Lack of performance visibility

Action Steps:

Build Strong Relationships: Set SLAs and collaborate on expectations.
Evaluate Vendor Performance: Monitor fill rates, worker quality, and compliance.
Mitigate Risk: Ensure vendors meet all legal and operational standards.

10. Technology & Automation

Why It Matters: Manual processes can't keep up with a fast-moving workforce.

Common Pitfalls:

Outdated systems
Disconnected platforms

Action Steps:

Implement a VMS: A system like FlentisPRO centralizes requisition, onboarding, and compliance.
Integrate Systems: Connect your VMS with HR and ERP tools for full visibility.
Stay Current: Regularly upgrade software to access new features and enhanced security.

Transform Your Contingent Workforce Program

A well-managed contingent workforce provides your business with agility, cost-efficiency, and a competitive edge. Ignoring these 10 areas, however, could result in compliance risks, higher expenses, and lost opportunities.

The good news? Solutions like FlentisPRO VMS help you streamline operations, maintain compliance, and improve performance visibility.