In every economic downturn, contingent labor has saved the day. During the financial crisis of 2008, and again in the early years of COVID-19, the manufacturing industry turned to temporary and contingent labor. And while the impetus to hire temporary staff may have been economic, organizations have discovered other advantages to a contingent or blended workforce.
Advantages to a contingent workforce
Flexibility
In manufacturing, this is key. Whether you want to meet seasonal variations in demand or remain flexible in a changing economy, a contingent workforce provides agility and scalability. And if you want to initiate a special project, you can hire specialized talent that may not be needed on a day-to-day basis going forward.
Time savings
Contingent workers can generally be hired more quickly and may not require onboarding. And because these workers are often chosen primarily for specific skills, they may require less training than a full-time employee.
Cost savings
Although contingent workers’ rates may sometimes seem high, they’re mostly ineligible for benefit programs, amounting to substantial overall savings.
Large talent pool
As of Q4 2024, Vietnam had approximately 33.2 million informal workers, accounting for 63.6% of the total employed workforce. This trend highlights that flexible, independent work is no longer merely a fallback option. Instead, it is increasingly becoming a conscious career choice for many people, offering autonomy and adaptability in a changing economic environment.
Strategic HR for a Flexible Workforce
If you tend to wait until your headcount falls and the rest of your workforce is overwhelmed before looking to augment your staff, you’re already behind.
Clearly define goals for your human resources plan.
Establish transparent policies that comply with legal regulations regarding employee benefits and classifications.
Ensure clear onboarding and offboarding processes, closely tied to the roles and responsibilities of seasonal personnel.
Optimize management by utilizing HR software or partnering with a specialized temporary labor management agency.
When policies are transparent, goals are defined, processes are standardized, and technology or experts are leveraged correctly, businesses will possess a flexible HR ecosystem that can operate sustainably, comply with legal requirements, and quickly adapt to market fluctuations. Now is the time to proactively shape your workforce, rather than merely reacting to shortages.
What contingent workers want
Gone are the days when contingent workers were easy to hire, easy to replace, and rarely committed for the long term. Today’s candidates come with their own expectations and needs — and a wealth of opportunities to consider before choosing where to stay. Companies that prioritize the contingent worker experience are the ones that attract higher-quality talent.
A truly contingent-friendly organization typically embodies four key traits:
Flexibility to meet candidates’ needs — from working hours and models to self-managed schedules.
Inclusion and fairness between contingent and permanent employees.
Support for personal growth — through training, performance feedback, and career pathways.
Clear transition opportunities for contingent workers to become full-time staff when the fit is right.
A proactive strategy combined with an effective implementation mechanism builds stronger bonds between organizations and their contingent workforce. This is the key to shaping a highly adaptive talent ecosystem and optimizing operational efficiency.
Managing your program
Just as important as drawing up a plan, you need the mechanism to make it all work. Depending on the size of your workforce, this can be a complex issue.
Leverage technology
Workforce management software allows businesses to manage everything from payroll, benefits and human resources (HR) to recruiting, onboarding, performance and learning from one location. There are many versions of these products available. Factors to consider include scalability, integration capabilities, ease of use and cost.
Consider a workforce management partner
The easiest way to ensure compliance, engagement and smooth sailing with your contingent workforce is by partnering with a professional. Consolidating your workforce management to one vendor not only minimizes risk, it also gives you full visibility into your workforce and simplifies performance measurement.
Finally…
If your company is more reactive than proactive about contingent staffing, it’s time to make some changes.
Start with well-defined policies and business rules that govern engagement, risk, compliance, cost, and overall program success. Craft your program around the contingent worker’s wants and needs, and prioritize a sense of belonging. And ensure ongoing success with software or a workforce management partner.
Mastering these basics will enable your organization to engage a flexible, on-demand workforce while minimizing potential challenges.
Want to discuss further? Contact us today.