how to build a contingent workforce.

Flexible staffing – and specifically the ability to acquire particular skills at short notice, or scale up and down your workforce capacity in line with demand – can prove particularly important in rapidly evolving industries like manufacturing, logistics and the automotive sector.

Using contingent labor can also help you achieve practical, everyday benefits such as:

• reduced overtime costs
• filling short-term capacity gaps created by absenteeism and staff turnover
• cheaper and quicker hiring than permanent recruitment

This article details key components for successfully building a contingent workforce and achieving optimal outcomes both for your business and your temporary employees.

key components for building a contingent workforce

a dedicated on-site team 

When building a contingent workforce, ensure you assign a dedicated team that works on-site with a first-hand view of your business functions. The on-site team should at least include:

• a commercial manager
• an account specialist
• a process manager

These team members should be supported by experts specializing in disciplines such as health and safety, legal and compliance, which means you get a comprehensive, holistic service that benefits your organization in various ways.

Working on-site means the team will get a deeper understanding of what you do well, the most common obstacles you face and where you have opportunities to improve.

Another key benefit that may come with having a designated team on-site is that they can gauge sentiment and attitudes in the workforce and discover your employees' most common concerns, priorities and questions. This is a key benefit if you're committed to goals such as delivering a positive workplace experience, building a strong employer brand and reducing staff turnover.

The team should reflect a commitment to driving continuous, long-term improvement, helping you with flexible staffing, workforce management and other immediate concerns – paving the way for sustainable growth and success.

understanding your market

Ensure your on-site team understands your market and is equipped to support your specific industry. They should be able provide research findings and insights that can lead to more relevant, responsive workforce management.

One of the biggest benefits you can gain by employing a dedicated on-site team is a stronger understanding of your industry and the direction it's heading in. The team members should also keep you abreast of the latest employer branding insights, which will help you understand jobseekers' needs and how you can appeal to them.

According to our Employer Brand Research 2024 report, the number one driver around the world is salary and benefits.

finding the talent you need

Acquiring and retaining the talent you need to achieve your core business objectives (whether it's in the form of contingent labor or permanent staff) should always be a top priority. On some occasions – when you need to meet a sudden increase in customer demand, for example – it's vital that you're able to identify and recruit capable workers at high speed.

This is one area where a designated team can provide great value for you and your business – by maintaining an extensive network of qualified, vetted candidates, who are ready to start work at short notice. 

The Randstad website and our subsidiary Monster – one of the world's largest job boards – are powerful channels for you to get your vacancies seen by a wide audience.

cutting costs

A proficient on-site team can help you reduce your overall workforce costs. Here are some examples of how these financial benefits can be achieved:

• quicker and more efficient recruitment: The less time you have to dedicate to your hiring cycle, the more you save. 
• reduced overtime costs: If you can bring in capable contingent workers to boost capacity at short notice, you don't need to worry about covering overtime costs for permanent employees.
• higher productivity: Having the right people in your workforce at the right time increases your output, raises efficiency and reduces the risk that you'll miss out on valuable business opportunities.
• reduced turnover: Constantly losing staff and having to replace them is expensive, with a range of costs to take into account. 
• seasonal flexibility: Industries like manufacturing are heavily affected by seasonal trends. A strong flexible staffing strategy makes it easier for you to scale your workforce up and down, so you always have the right number of staff on hand at the right time. 

engagement and retention

Delivering a positive employee experience is a worthwhile goal for every business. If people feel engaged and happy working for you, they will be more productive and less likely to leave. As well as being valuable

in the short term, this helps you build a positive employer brand, which is beneficial for your future recruitment activities.

Having competent team members on-site allows them to interact directly with your employees. Through direct conversations, answering questions, and listening to concerns, they can offer tailored recommendations to drive engagement.

A skilled team should be able to provide support with key aspects of the employee experience that feed into engagement and retention, including:

• Onboarding and induction: Make sure you get these processes right if you want to start relationships on the best footing.
• Training: Give people the skills they need to work efficiently and boost their future employability.
• Performance reviews: Keep track of how individual workers are doing and set targets for ongoing improvement.

This is an updated version of an article originally published on 19 January 2021.