Today, the need for contingent staff is becoming increasingly important for companies looking for temporary staff. means flexible workforces for organisations that can assist them in their overall growth and achievements. As per reports by Forbes, contingent workers consist of approximately 40–50% in almost all sectors, including IT. Many organisations look for contingent staffing services so that they can appoint the right candidates for their flexible workforce. Because of this, organisations need to build a reliable and strong relationship with the suppliers who provide them with contingent staff.
Maintaining and building a strong relationship with contingent staff suppliers requires time and effort and also some crucial internal changes. Let’s find out more about how an organization can become a preferred partner to contingent staffing suppliers.
Why become a preferred partner?
When you become a preferred partner for contingent staffing suppliers, you get a lot of benefits. Some of them are:
Cost-effectiveness
One of the main benefits of preferred partners is that they can get multiple financial benefits. If you establish a strong partnership with a contingent staffing supplier, it becomes easy to negotiate about a lot of things. You can do this on favorable terms. As a result of this, there will be a reduction in staff augmentation, which will save a lot of money.
Access to the talented staff
The preferred partner will also get the first access to the top talent. This is because the staffing suppliers can keep a section of skilled and experienced workers for their preferred partners. So, if you become a preferred partner, then you can get access to the candidates that are suitable for your organization. In addition to this, your organization can also ensure that they have the best contingent staff in the business.
A precise and streamlined communication
Another important benefit of becoming a preferred partner is a precise and streamlined communication process. In addition to this, the entire process of contingent staffing will become faster and easier. The staffing process sometimes gets tedious because of administrative processes.
So, the preferred partner doesn’t have to deal with all the time-consuming administrative processes. But there’s a need to have a balance between the partnership and the business. A mutual relationship is important to build so that both can get benefits.
Contingent Staffing Supplier’s Perspective
want a partnership with the organizations that consists of shared objectives and reliability. Every supplier wants transparency from the client company. From the supplier’s perspective, companies must communicate with them properly about their requirements and expectations. This enables the suppliers to provide contingent staff and better service to meet the company’s requirements effectively.
Along with this, suppliers want their payment to be regular as it helps in making their relationship with companies reliable. Any interference in the payment leads to cash flow management so it may also hinder the ability to offer quality staffing service.
Potential issues that could happen in partnership between the company and staffing firm.
The organisations need to know how to train the contingent staff and transition their roles. There can be issues if there’s a poorly transitioned contingent staff. This could cause inefficiencies and excessive costs. Not just this, there will also be damage to the partnership between the company and its staffing firm. The contingent staffing service in the USA is on the rise, so they also need to focus on the potential risks that could hamper the relationship between suppliers and companies.
Damage to the business’s brand
Poorly transitioned contingent staff sometimes also impact the brand’s reputation. There will also be a negative perception in case of improper transitioned contingent staffing. So, this will ultimately lead to a negative impact on the company’s brand, reputation, and name.
Legal risks
One of the potential risks that also increases due to poorly transitioned contingent staffing is the legal risk. There are times when the contingent staffing is incorrectly classified; this could pose legal risks. In addition to this, the company will also, at times, face potential legal risks or fines if they are not given their rights and benefits.
Decreased company’s potential
There will also be an issue of lack of understanding of the role and responsibilities. So, a wrong-transitioned contingent staff can lead to a sharp decrease in productivity and inefficiency in business operations.
A decrease in the morale of the contingent staff
An unsatisfied contingent staff can be a reason for a decrease in the turnover rate. Contingent staff who feel neglected or underprepared may experience decreased morale, leading to lower engagement and potentially higher turnover rates.
An increase in the training costs
The contingent staff needs to be well-trained and experienced. In case of wrong-transitioned contingent staff, there will be an additional cost requirement in their training. So, the organization will have to bear the increased cost of onboarding and training.
Final words
If an organisation has requirements for contingent staff, then it needs to build better partnerships with them. The role of contingent staffing in organisations is crucial, and organisations must have strong partnerships in terms of transparency and shared growth. Ensuring proper transition of contingent staff is the main advantage of partnership with the suppliers.
FAQs
What companies use contingent workers?
Healthcare, IT, and many other industries employ contingent workers to add flexibility to the workforce.
How do you find contingent workers?
Organisations can find contingent staff from staffing agencies. However, businesses can also find contingent workers through job boards and freelance websites.
What is the difference between employees and contingent workers?
A contingent worker works on a temporary or contract basis. They are mainly appointed for a company on certain conditions. But the employees are permanent staff of an organization.