The extended workforce has bounced back and is growing. According to the Staffing Industry Analysts (SIA) 2022 Workforce Solutions Buyer Survey, contingent labor accounts for an average of 22% of their respondents’ total workforce. However, by implementing non-permanent work, a new set of rules and regulations come into play that your organization must properly follow to maintain compliance.
Failing to meet your company’s compliance requirements can result in significant costs and inefficiencies. But how can we mitigate the risks? In this article, we discuss three main points you need to add to your must-have list in order to get your extended workforce program on the right side of compliance.
3 Ways to Work With Existing Compliance Requirements
There are many things to factor in when defining your contingent worker compliance process. However, the existing basic hiring requirements of your organization can provide a good foundation for this work.
Before you focus on your extended workforce, look at the requirements for hiring permanent employees in similar role types. Your contingent workforce program should mimic what you’re doing with your permanent staff as closely as possible. If you’re not in human resources, connect with your HR team to find out what hiring and onboarding processes they have in place. This information will help you to:
1) Repurpose Your Minimum Requirements for Employment
Are there certain requirements your organization adheres to for full-time employment such as background checks and drug screening? If your background check provider already has a set process for roles in your company, using the same requirements will keep that process clear and simple for the provider as well as the worker.
There’s an added benefit to this: if there’s a chance they could be brought on full time in the future, you’ll want that work done upfront so there’s no chance of a red flag that could derail the process. Not only could it mean that hiring the individual permanently is no longer possible, but it gives that worker a poor experience and view of your company.
LEARN MORE ABOUT COMPLIANCE | ‘6 Key Compliance Categories for All Contingent Workforce Programs’
2) Know When to Use Company-Supplied Resources
While your supplier is the contingent worker’s employer, there may still be occasions when that person needs onsite support. If they’re injured, who should they approach? If they require access to a certain area or site, or if something isn’t working as expected, who is the right person to talk to?
Your organization will be expected to provide resources and answers to a limited range of questions like these. However, the supplier must be aware of its own responsibilities to the worker, and your organization’s generalized resources should not be considered a replacement for the supplier’s own. Ultimately, direction for completing tasks should be up to your supplier—in other words, the worker’s employer.
HAND-PICKED FOR YOU | ‘3 Easy Steps to Create a Partnership With Your Staffing Suppliers’
3) Adapt Your Certifications and Agreements
Similar to background checks, if the role requires certain documentation it should be aligned with HR’s process. If your company works with sensitive or proprietary information, a non-disclosure agreement (NDA) may be required regardless of employment status. Certifications required for specialized positions will also need to be documented, but when it comes to short-term employment, how that information is captured will be different from permanent employees.
Learn More About Risk Mitigation and Compliance
Meeting your minimum compliance requirements is the first step toward guaranteeing a successful internally-managed program. Nevertheless, other procedures also need to be in place to mitigate risks.
If you’re interested in learning more about compliance and risk management, download our ebook ‘4 Ways to Ensure Your Internally-Managed Contingent Workforce Program is Compliant’. In this document, we dive deep into the importance of clear communication, proper VMS technology, and regular audits to ensure your program operates with minimal risk.
Is There Too Much to Manage? Why It Pays to Think of Hybrid Alternatives
According to the aforementioned SIA survey, 39% of organizations manage their extended workforce program internally, and a further 19% say they plan to do so in the future. Whatever approach they take, HR teams must focus on hiring quality talent with the proper skills. However, ensuring all requirements for their extended workforce are met in time is no small task.
While internal management of external workforce programs has many benefits, a hybrid management program like VectorVMS’s Shared Managed Services (SMS) helps to ensure candidate quality while offloading the significant potential strain on your HR resource.
An SMS program allows you to manage your contingent workforce while still receiving specialized services of your choice, from consulting to the administration of your extended workforce compliance processes. You will also have access to subject experts who will work as an extension of your internal team and help you solve the intricacies of non-permanent hiring.
Contact us today to find out if SMS is right for your internally-managed program.
Meet the Expert
Cindy Chunn – Senior Program Manager
Cindy Chunn was a seasoned Program Manager at VectorVMS. She served as a strategic partner to our clients, providing implementation support for our VMS technology and consultation services for contingent workforce program management. In her five years with VectorVMS, Cindy successfully led strategic business objectives, process improvements, and operational excellence for large and mid-market clients. Prior to VectorVMS, Cindy spent six years with Manpower as a regional director, overseeing multiple branches and large contingent workforce programs. She also served as a government solutions executive, blending public and private talent solutions for clients in the public sector.
