Search:

Articles

< Back to Articles

Managing the Contingent Workforce: Cecile Bereal, President of the Society for Human Resource Management, weighs in on the benefits and challenges of using contingent workers.

By Ms. Elizabeth Rice, SPHR

Use of the contingent workforce is clearly on the rise, as employers seek to cut costs and improve their bottom line while employees look for increased flexibility and the ability to specialize in a particular field. By outsourcing to consultants, contractors, project managers, and field workers, etc. - companies can add to their staff on a need-only basis, while these contractors maintain the flexibility to handle multiple contracts without limiting their opportunities to a single employer.

IES recently spoke with Cecile Bereal, President of San Diego's Society for Human Resource Management, about the current state of the contingent workforce. Ms. Bereal serves as a human resources consultant for employers, helping them to create an HR plan for managing and training employees. An expert in strategic HR management, she offered a qualified assessment of the pros and cons involved in using the contingent workforce, as well as advice for establishing an effective relationship between employers and contractors.

The benefits of the contingent workforce

As many companies seek to save money by creating a more flexible and agile workforce, the demand for consultants, project workers, and other contingent workers in general is increasing. And as companies increase hiring on a contract basis, more workers are telecommuting and working remotely, away from a company's physical headquarters. This creates an opportunity for employers to lower their expenses, and frees up contingent workers for multiple contract opportunities, creating a number of benefits for all involved.

A key advantage for employers outsourcing to contingent workers is the freedom to determine a worker's hours on a need-only basis, without having to pay salary and, in many cases, benefits. In addition, points out Bereal, "Companies who use contract and contingent workers get high-level experts in their field. These knowledge workers often have many years of experience, and this valuable expertise will save employers money in the long run."

In addition, using the contingent workforce for contract projects provides employers with a ready, reliable, and qualified pool of potential employees. "After hiring a contingent worker for a special project," Bereal notes, "companies can determine whether or not they want to offer permanent employment."

Maintaining contingent status has a number of benefits for a contract worker as well. "A large advantage for contingent workers is that they can charge employers on a consultancy basis, maintaining a great deal of flexibility," says Bereal. "Contingent workers may come in for projects and shorter periods of time, and can charge by the project or by the hour for their expertise." In addition, she adds that many workers enjoy their employer/worker relationships more when hired on a contingent basis, because "they can maintain a very neutral position within the company.

Managing challenges of the contingent workforce

Despite the solutions offered, outsourcing to contingent workers can sometimes create challenges for employers and employees alike. Bereal acknowledges that a key issue for employers is control. "Because it isn't their employee," she says, "employers may be concerned that they have limited control when compared to more permanent members of personnel."

Contingent workers, on the other hand, face the issue of potentially inconsistent business. "The greatest challenge for contingent workers is the fact that work is temporary," Bereal says. The freedom and flexibility offered by temporary and contract work also means that contingent workers must plan for uncertainties in the demand for their services.

In order to ensure a successful relationship between employer and contingent worker, Bereal offers the following advice for contingent workforce management: "Create a contract agreement, rather than a verbal one, in which employer and worker clearly define their expectations, limitations, and project goals, as well as the anticipated length of the contract and specified project deliverables." Establishing guidelines and expectations initially and in writing will clarify roles and expectations, as well as facilitate communication throughout the project or duration of the contract.

About the author:
Ms. Elizabeth Rice, SPHR is the President of Innovative Employee Solutions® - a San Diego-based company specializing in payroll and HR administrative services for the contingent, non-core workforce. Ms. Rice has more than 20 years of experience in HR and executive management and is noted both regionally and nationally for her particular expertise in employee relations, women's workforce issues, and temporary employment. Ms. Rice can be contacted at erice@innovative-es.com