Contingent Workforce Management

Companies also benefit by centralizing their HR administration and eliminating redundant relationships and non-uniform pricing amongst contract workers. For example, many larger companies have decentralized hiring managers that bring on contingent workers for specific projects, without knowing whether that employee has worked in other departments or if the job was completed to the supervisor's satisfaction. Outsourcing contingent employees through a third party employer of record allows companies to have a centralized database where they can see which contract employees have worked for the company in the past and how well they performed. Additionally, many states have laws limiting 1099 contract workers to work no more than 1000 hours per year or risk penalties for misclassification. By having employees centralized through an employer of record, this risk is mitigated.

First, the morale of the contingent employee is greatly improved if they have access to the same services as regular employees. Things as simple as being permitted to park in the same lot, get purchase discounts, and eat in the company cafeteria can help make the experience for the contingent employee more pleasant. Additionally, companies can go a step further and open up corporate training to contingent workers, allowing them to increase their skill-set and enriching their experience.