That’s why more organizations are now turning to contingent labor to address those gaps and improve efficiency. Contingent labor is a workforce solution that’s been growing in popularity in recent years. It involves companies employing skilled workers in temporary roles.

While these programs can be highly effective, they need to be implemented correctly. So how can you measure the success of your contingent staffing program? In this blog, we’ll explain how you can determine whether your program is working, which metrics you should track, and what to do if your program isn’t driving the results you need.

Why It’s So Important to Evaluate Your Contingent Workforce

It’s crucial to regularly measure the success of your contingent labor program. Doing so helps to ensure the program is aligned with your company’s goals.

If you’re working with a staffing firm, it’s also a good way to check that you’re getting the level of service you’re paying for.

Whether you’re employing a contingent workforce using your own resources or working with a provider, our talent experts at Acara recommend regular evaluations – every six to 12 months or so.

Now let’s get into the metrics you should look at during those evaluations.

Metric 1: Efficiency

There are many factors to consider when assessing the efficiency of your labor program. Here are some questions you can ask yourself:

What’s the time-to-fill?

Sometimes, filling a role takes a long time. The average time to find a quality candidate is around 41 days.

However, having the right staffing firm can reduce the search time and get your positions filled with qualified workers faster. Check out our cost of vacancy calculator to learn how much having unfilled positions on your team is setting you back.

Is the onboarding process seamless and fast-tracked?

Measuring onboarding time will help give you an understanding of how long it takes contingent workers to start contributing and can uncover process improvements. Having a standard operating procedure (SOP) for onboarding will ensure your temporary workers can get up to speed quickly on your company, needs, and goals.

Is your current contingent labor program putting strain on your HR team?

Just like with full-time employees, contingent workers come with time-consuming administrative tasks – from recruitment and onboarding to contracts and performance management. Many HR departments are already stretched thin with full-time employees and day-to-day tasks, so it’s important they don’t feel even more overwhelmed with a contingent workforce.

The right staffing firm will manage the entire contingent staffing lifecycle, including sourcing and screening, interviews, compliance, and onboarding. This will free up your internal HR team so they can focus on more important tasks.

Metric 2: Quality

Beyond efficiency, it’s important to check that your contingent staffing program is yielding high-quality workers. Ask yourself these questions to determine the quality of your program and workers:

Do the candidates fit your requirements and qualifications?

Your contingent staffing firm should provide candidates who are ready to come in and make an immediate difference for you. The contingent worker candidates being sourced should fit all of the requirements and qualifications you laid out so they can effectively perform the duties they were hired for.

If you’re declining a significant number of candidates being sourced by your provider and your interview-to-hire rate is low, it may be time to find a new partner who better understands your needs.

Are contingent workers meeting your needs?

Short-term employees should effectively fill talent gaps on your team and provide skills your regular workforce may lack. You should regularly evaluate the work your contingent employees are completing to ensure it’s up to your standards.

Sending surveys or performance evaluations to managers will help you better understand how well contingent workers are performing.

Do you have high turnover?

Tracking retention of your contingent workforce is important. High turnover could mean there’s a misalignment between the contingent worker and the role. This could also be the sign of a deeper issue – that you and your staffing firm aren’t aligned.

An experienced staffing firm will ensure they fully understand your organization and its labor needs so they can source and place suitable contingent workers.

Metric 3: Cost

One of the biggest things you’ll want to evaluate regularly is the cost effectiveness of your program. Having a clear understanding of cost-per-hire, conversion fees, and the underlying markup will allow you to understand the true cost of your contingent workforce.

To ensure you’re not going over budget, you should ask yourself these questions:

What’s the cost per hire?

If your internal teams are managing the recruitment of contract personnel, you need to keep in mind everything that went into acquiring a candidate, including advertising costs, screening costs, onboarding tasks, and administrative expenses.

While it might seem like working with a staffing firm could cost more, the right contingent staffing provider will actually help you save money. They’ll use their resources, experience, and talent pool to find better candidates in a timely manner and often at a lower cost per hire.

Are the conversion fees affordable?

The great part about using contingent workers is you can hire them full-time if they’re a good fit within your company, however most agencies charge a conversion fee depending on how long the worker has been on assignment.

It’s always a good idea to evaluate the contract-to-hire policy your staffing firm offers.

Does your program ensure compliance?

Successful contingent workforce programs will have a thorough understanding of the laws and regulations related to the provision of contingent employees. This will help avoid penalties and costly fines related to misclassification, wage and hour issues, immigration, and health and safety regulations.

When you work with a staffing firm, much of the risk shifts to your provider since they are the employer of record. Making sure that your staffing firm is reputable and up to date on legal requirements is essential in managing risk and reducing costs.

Metric 4: Flexibility

Keep in mind that flexible, temporary labor plans should readily flex to fluctuations in your business needs. This includes scaling up or down in response to seasonal demand, supporting new projects or initiatives requiring specialized skills, and covering unexpected employee turnover or absences to maintain operations.

Consider these questions to find out if the flexibility of your process is working:

Has the program been able to flex to support changing needs?

If your contingent staffing solution can’t flex with you as your needs change, you may want to consider partnering with a different staffing firm. The right staffing firm will be able to scale your program up and down as needed.

A good staffing firm will also consistently share metrics, best practices, and labor solutions with their customers.

Is the solution tailored specifically to your company?

Your contingent labor program should be designed for you and be based on your challenges, needs, and company culture.

The right staffing firm will adapt and tailor successful strategies to fit your organization and make changes as needed to support your goals.

What to Do With Your Results

Once you’ve gathered key metrics like time-to-fill, cost-per-hire, conversion fees, and onboarding time, you should have a better idea of how your contingent labor program is performing – and whether it’s time for a change.

Remember, the right strategy will significantly enhance your team’s capabilities while optimizing costs and freeing up your internal resources. If you’re not seeing those results, it might be time to find a different staffing solution – or at least a different provider who can meet your needs.

If you’re looking for a staffing firm to help you navigate the complexities of contingent labor, reach out to Acara Solutions. We’ll get to know you and help design and implement a program that aligns with your unique business needs.

The post 4 Metrics to Evaluate the Success of Your Contingent Labor Program appeared first on Acara Solutions.

With organizations struggling to find workers amid ongoing talent shortages, more are bringing in contingent workers to help meet their needs. The United States’ contingent workforce grew to 4.3 percent in 2023, according to the U.S. Bureau of Labor Statistics.   

If you haven’t considered scaling your organization’s workforce with temporary workers, now might be the time to reconsider. In this blog post, we’ll break down six major benefits of temporary staffing that make it a viable solution for your talent needs. 

Related: The Upside of Converting to Contingent Labor

#1. Addresses Talent Gaps 

One of the biggest benefits of temporary workers is that they can quickly address talent gaps within your existing workforce. 

Let’s say you have a specific skill or trait that you need but that your current employees don’t have. A temporary staffing partner can provide you with a qualified worker who’s ready to come in and make a difference immediately.  

Hiring a temporary employee is much more efficient, and effective, than spending time sourcing, interviewing, and onboarding a full-time employee. 

#2. Greater Flexibility 

Bringing on temporary workers is also a strategy that comes with few strings attached – meaning you can end these resources’ assignments once your labor needs subside.  

So if your organization is in the advanced manufacturing industry and needs extra technicians to help with production on a new device, you’re only paying for these workers as long as you need them. As soon as operations are back to normal, your temporary workers can be dismissed. 

#3. Cost-effective 

Temporary workers are typically much less expensive than full-time employees. Think about the wages, benefits and other costs incurred for all employees (taxes, workers, compensation, etc), in addition to any necessary training or upskilling. Compare that to hiring a qualified worker who can put their skills to work right away – and is only around as long as you need them to be. 

If you work with a staffing partner to bring on temporary workers, you’re looking at even more significant cost benefits. Without having to spend time on tedious recruiting tasks, your HR team can pursue more valuable business objectives.  

#4. Offers an Employee Trial Period 

Leveraging temporary workers lets you evaluate their skills and determine how well they mesh with your direct staff. If you’re satisfied with their performance, you can easily convert them to a full-time employee.  

Most temporary staffing partners offer free conversion fees after accruing a predetermined number of hours worked, providing you with even more cost savings.  

Related: Explore Acara’s temp-to-direct talent services

#5. Reduces Administrative Tasks 

Temporary staffing providers do more than just find the talent you need. They can also handle all onboarding and payrolling responsibilities. 

So if your HR team is overwhelmed and stretched thin with administrative tasks, working with a temporary staffing partner can take some of the more time-consuming tasks off their plate. 

#6. Customizable 

Regardless of your company’s size and industry, your hiring needs will be unique and specific to your business. By choosing the right temporary staffing provider, you’ll get specialized talent acquisition services catered to your organization.  

Ultimately, your staffing partner will help you connect with candidates who align with your business objectives and company culture. 

Finding the Right Temporary Staffing Solution For You 

If you’re struggling to find full-time employees or need a more flexible workforce, temporary staffing is a solution that lets you quickly address your needs so you can stay competitive and drive growth.  

But finding success with temporary staffing requires the right talent partner. A good temporary staffing agency will get to know you and develop a deep understanding of your goals and challenges so they can provide you with the right resources. 

If you’re looking for a temporary staffing partner, you should find one that offers: 

• Scalability 
• Risk mitigation 
• Advanced sourcing technology 
• Fast turnaround

At Acara Solutions, we have decades of experience providing custom temporary staffing solutions to companies across a wide range of industries. If you’re ready to scale your workforce and address your talent needs, get in touch with our experts.

Updated on March 19, 2025

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The Hybrid MSP Advantage 

Integrated Approach: By blending the best features of preferred supplier and master vendor frameworks, Acara’s hybrid MSP delivers unparalleled flexibility and value. This model allows organizations to benefit from a strategic supply base that balances efficiency and quality in workforce management. 

Comprehensive Management Services: Acara’s hybrid MSP handles every aspect of contingent workforce management, including supplier consolidation, payroll administration, onboarding and offboarding, and enterprise reporting. This comprehensive service ensures streamlined operations and reduced administrative burdens. 

Enhanced Analytics and Visibility: Utilizing advanced processes, toolkits, and online dashboards, Acara provides enhanced analytics and visibility into workforce operations. This capability allows for better decision-making and improved management of contingent labor. 

Key Benefits 

Higher Quality Talent: Acara’s expertise ensures access to top-tier candidates through specialized recruiting strategies. By retaining existing suppliers for specialized roles, the program guarantees optimal access to high-caliber talent. 

Cost Out Savings: The hybrid MSP model typically delivers significant cost savings, ranging from 9% to 12% in the first year. By consolidating suppliers and eliminating rogue spend, organizations can achieve substantial financial benefits. 

Speed to Hire: With a dedicated program manager and optional on-site recruiting lead, Acara ensures fast and efficient hiring processes. This speed is crucial for meeting fluctuating demand without compromising quality. 

Scalability and Flexibility: The hybrid MSP is designed to scale with your organization’s needs, providing flexible staffing solutions that adapt to changing market conditions. 

Improved Hiring Experience: A single point of contact simplifies communication and operations, ensuring smooth processes from onboarding to offboarding. 

Enhanced Workforce Retention: Proactive contractor care initiatives improve retention rates by offering consistent pay, benefits, and performance management coaching. 

Leveraging Preferred Supplier and Master Vendor Strengths 

Acara’s hybrid MSP uniquely blends the advantages of preferred supplier relationships with the comprehensive management of a master vendor program. As a preferred supplier, Acara develops an intimate understanding of the organization’s core needs and objectives, enabling more tailored and efficient staffing solutions. Simultaneously, by acting as a master vendor, Acara centralizes management of the entire contingent workforce, driving cost savings and streamlining processes. This approach allows organizations to benefit from the deep expertise and dedicated service of a preferred partner while also gaining the broader supplier management and cost control benefits typically associated with master vendor programs. The result is a more agile, cost-effective, and quality-focused contingent workforce management solution that adapts to the organization’s evolving needs. 

In summary, Acara’s hybrid MSP provides a robust solution for managing contingent labor efficiently while ensuring quality and cost-effectiveness. This innovative model is particularly beneficial for organizations looking to optimize their workforce strategies in an ever-evolving economic environment. 

Transform Your Contingent Workforce Management 

Acara’s Hybrid MSP combines the best of preferred supplier and master vendor models to deliver a flexible, cost-effective, and quality-focused solution. From streamlining operations to improving talent retention, our tailored approach helps businesses thrive in a dynamic economic landscape. 

The post Exploring the Benefits of Acara’s Hybrid MSP appeared first on Acara Solutions.

More employees and companies are taking advantage of contingent labor, according to the U.S. Bureau of Labor Statistics (BLS). 

The agency released its new contingent employment statistics on Nov. 8, 2024, revealing a total of 6.9 million workers in the United States – or 4.3% of the workforce – reported holding a contingent position as their main job. The findings are based on a survey conducted in July 2023.

These latest statistics reveal an uptick in contingent work over the last six years. The last time the survey was conducted, in May 2017, only 3.8% of workers reported holding contingent jobs.

To understand what this means for the U.S. workforce, let’s take a closer look at what the data says.

A Closer Look at the Contingent Workforce

In addition to the statistics that reveal how many contingent workers there are overall in the U.S., the new report dives deeper into who exactly makes up the contingent workforce.

What is Contingent Labor?

First, we should explain what contingent labor means. The survey sent out defines a contingent job as one that employees don’t expect to last. These roles are temporary, where workers don’t have a contract for ongoing employment. 

It’s important to note, however, that jobs are not considered contingent if they’re temporary due to personal reasons – like an employee retiring or leaving work to return to school.

Who are Contingent Workers?

As we mentioned, the new statistics tell us that 4.3% of the workforce in the U.S. is contingent. But who exactly makes up that percentage by demographic?

By Age

The survey found that the contingent workforce skews younger. According to the BLS, workers between the ages of 16 and 24 are four times more likely to have a contingent job than those 25 and older. 

The survey revealed the following contingent work rates by age:

• Workers Age 16-24: 12.9%
• Workers Age 25-54: 3.1%
• Workers Age 55+: 2.6%

Men vs. Women

Men and women hold contingent jobs at almost the same rate, according to the survey findings. Men reported holding contingent jobs at 4.3% while women were at 4.2%. 

For both men and women, workers in the youngest age group (16-24) hold contingent jobs at the highest rate. Men in that age range reported a 13.3% contingent rate while women reported a slightly lower 12.5%.

Race & Ethnicity

The survey also provides insights into the race and ethnicity of the contingent workforce. The results show that Asian and Hispanic or Latino workers are more likely to be contingent than white or Black workers.

• White Workers: 4.1%
  • White Men: 4.1%
  • White Women: 4.0%
• Black Workers: 3.9%
  • Black Men: 4.5%
  • Black Women: 3.3%
• Asian Workers: 5.9%
  • Asian Men: 5.7%
  • Asian Women: 6.2%
• Hispanic/Latino Workers: 6%
  • Hispanic Men: 6.6%
  • Hispanic Women: 5.2%

Education

According to the BLS, workers enrolled in school are much more likely to be in a contingent position than those who are not enrolled. Workers aged 16 to 54 who were in school reported a 15.5% contingent rate, compared to 4% reported by workers not in school.

The data also sheds light on the education level of workers 25 and older who reported holding a contingent job:

• Less Than a High School Diploma: 7.1%
• High School Graduate With No College: 2.7%
• Some College/Associate Degree: 2.2%
• Bachelor’s Degree or Higher: 3%

Industries & Occupations With Contingent Workers

The new BLS survey also collected information on the industries and occupations with the most contingent workers.

By Industry

Agriculture and related industries have the highest rate of contingent labor, according to the survey findings, followed by the leisure and hospitality industry.

• Agriculture and Related: 10.4%
• Leisure and Hospitality 7.7%
  • Arts, Entertainment, and Recreation: 14.1%

By Occupation

The findings show the highest rate of contingent work in natural resources, construction, and maintenance jobs, closely followed by service jobs. The lowest was in management, business, and financial occupations.

• Natural Resources, Construction, and Maintenance: 6.5% 
  • Farming, Fishing, and Forestry: 17.9%
  • Construction and Extraction: 7.4
• Service: 6.1%
  • Personal Care and Service: 9.3%
  • Protective Service: 5.6%
  • Healthcare Support: 4.2%
• Management, Professional, and Related Occupations: 3.6%
  • Management, Business, and Financial: 2.1%

By Job Type

The BLS noted in its update that part-time workers are about three times more likely to hold a contingent job than full-time workers. 

• Part-Time Work: 9.7%
• Full-Time Work: 3.2%

Second Jobs

According to the BLS, 5% of employed Americans hold multiple jobs. Of those multiple jobholders, 1.1 million people – or 12.8% – have a second job that’s contingent. Approximately 2% of people with multiple jobs reported they were contingent in both their main and secondary jobs. 

What This Means for the Labor Market

According to the survey results, 40.8% of contingent workers preferred their arrangement with temporary work, while 44.8% would prefer a permanent job for their main role. Other workers didn’t have a preference.

These percentages, in addition to the rest of the survey findings, not only give us a better understanding of the current contingent workforce but also reveal a heightened interest and reliance on contingent labor.

“As businesses navigate an increasingly dynamic labor market, the rise in contingent employment provides both companies and workers with new opportunities and flexibility. The latest data from the BLS highlights how more Americans are embracing contingent roles, whether by choice or out of necessity. This shift allows organizations to address talent shortages, scale operations quickly, and access specialized skill sets. For businesses, contingent staffing has become an essential strategy to remain agile and resilient in today’s ever-evolving economic landscape.” — Acara Solutions President Brian Christel

Start Taking Advantage of Contingent Labor

It’s clear, based on this new data, that the U.S. workforce is shifting, and the role of contingent work will continue to evolve in the coming years.

With the recent uptick in contingent employment, and more Americans showing interest in contingent roles, now is the time to explore this as an option for your business.

If you haven’t used contingent labor before, there are plenty of reasons you should. Contingent staffing is a highly customizable solution that allows you to fill talent gaps and add specific skills to your workforce that you may be missing. 

Hiring contingent workers lets you work with employees on a trial basis, allowing you to assess their skills and fit with the company’s culture. If a contingent employee is a good match, you can hire them full-time.

Using contingent workers, and working with a contingent staffing partner, also saves you time and money because your provider will handle administrative tasks like onboarding and payroll.

Ready to Get Started? We’re Here to Help!

If you’re ready to take advantage of contingent staffing, Acara Solutions is here to help. We source thousands of contingent labor candidates annually, connecting companies with highly qualified workers. 

At Acara, we don’t just fill positions. We focus on finding the right people for you. Our experts will work closely with you to assess your unique challenges, understand your culture, and identify skill gaps so we can connect you with contingent workers who will help you reach your full potential.

Learn more about our contingent workforce solutions or contact us to see how we can support your staffing needs.

The post Contingent Workforce Trends: 4.3% of US Workers Are Contingent appeared first on Acara Solutions.

However, contingent labor programs present significant opportunities for quick wins that can build momentum and provide long-term strategic value. McKinsey’s research indicates that procurement can unlock up to 10-15% cost savings through better management of indirect spending, which includes contingent labor. According to Deloitte’s Global Human Capital Trends, 51% of companies use contingent workers to reduce costs, and 47% use them to access specialized skills not available in-house. 

Here’s how procurement leaders can effectively navigate this area to secure early successes while driving meaningful impact. 

Where to Aim First 

1. Brainstorm Your Opportunities
   Begin by mapping out all potential opportunities related to contingent labor. This can range from cost savings, improving vendor relationships, enhancing workforce flexibility, or reducing compliance risks. Keep an open mind and engage stakeholders across departments to ensure a wide range of perspectives. 
2. Prioritize with Impact/Changeability Analysis
   Once you have a list of opportunities, prioritize them using a simple impact/changeability analysis. The goal is to identify initiatives that can generate significant results but are also easy to implement. This exercise will help you quickly determine where you can achieve the most value with minimal disruption. 
3. Create Your Business Case
   Building a solid business case is essential for gaining organizational buy-in. Focus on how the initiative impacts not just procurement, but your broader business partners. This will help you demonstrate that contingent labor management is not just a procurement concern but a strategic business initiative. 
4. Update Priorities Using Portfolio Management
   As your priorities evolve, use portfolio management techniques to assess their affordability and overall impact. This helps ensure that the initiatives you pursue are aligned with your organization’s financial and operational constraints. 
5. Leverage Quick Wins to Build Momentum
   By focusing on the low-hanging fruit, you can secure quick wins that generate immediate value. This early success helps create momentum, making it easier to push for larger, more strategic initiatives down the line. 

Building Your Business Case 

Crafting a compelling business case is crucial when seeking stakeholder support for contingent labor programs. Here’s how to approach it: 

• Think Like a Salesperson
  You are essentially “selling” your business case internally. Frame it in terms of unmet business needs, and how solving those issues with contingent labor will drive success. 
• Clearly Define the Unmet Business Needs
  Lay out the specific problems your contingent labor program will address. Whether it’s a skills gap, operational flexibility, or cost savings, make sure the need is clear and compelling. 
• Gather Facts, Data, and Proof Points
  Back your case with solid data. This can include benchmarks from your industry, cost-benefit analysis, and ROI estimates. Use proof points to illustrate your arguments and make them more persuasive. 
• Calculate Investment Needs and Scenarios
  Define the financial requirements of the program. Calculate the ROI and potential payback period, offering different scenarios that demonstrate the value under various conditions. 
• Socialize and Gain Stakeholder Support
  Build support among key stakeholders before presenting the business case to decision-makers. This will smooth the path toward approval and implementation. 
• Know Your Audience
  When presenting your business case, tailor your approach to your audience. Begin with a concise elevator pitch and have the detailed data available for those who need it. Avoid oversimplification, but ensure clarity. 
• When You Get to “Yes,” Stop Talking
  Once you’ve received approval, resist the urge to oversell. At this point, the focus should shift to implementation. 

Implementation: Managing Change Thoughtfully 

Executing contingent labor programs often involves digital transformation and requires careful management to avoid overwhelming your organization. 

• Lead with Culture
  Change can be met with resistance. Lead proactively by fostering an inclusive environment, communicating clearly, and being open to feedback. Be ready to course-correct if needed. 
• Leverage Small Wins and Continuous Improvement
  Don’t try to tackle everything at once. Implement initiatives gradually, celebrating small wins along the way to maintain morale and encourage further progress. 
• Celebrate Success
  Recognizing achievements helps to maintain momentum and build enthusiasm for continued improvements. 
• Define, Plan, Implement, Sustain—Then Rinse and Repeat
  Follow a structured approach to ensure the program is effective. Define your goals, plan the steps, implement carefully, and ensure the changes are sustainable. Once you’ve succeeded, repeat the process to build continuous value. 

Key Takeaways for Procurement Leaders 

• Balance Investments in People, Policies, and Processes
  While critical, investments in tools and automation can enhance productivity, improve quality, and free up time for more strategic initiatives.
• Prioritize Using Impact/Changeability Analysis
  This approach helps you focus on initiatives that generate maximum impact with minimal disruption. 
• Build a Strong Business Case
  Approach the business case like a sales pitch: understand your audience, present data-backed insights, and focus on unmet business needs. 
• Thoughtfully Manage Change
  Lead with culture and use small wins to maintain progress while implementing your transformation. 

By following these steps, indirect procurement leaders can effectively manage contingent labor programs, securing quick wins while setting the stage for long-term success. These strategies help align the program with broader business goals, ensuring that the procurement team adds strategic value and contributes to overall organizational growth. 

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Additional data tells us the future of contingent work is bright:

• A report by the U.S. Government Accountability Office states that 40% of the U.S. workforce consists of contingent workers, with the average organization employing 18% of its workforce on a contingent basis.
• Projections indicate that by 2050, freelance or contingent workers will make up 50% of the U.S. workforce.
• The trend of increasing contingent labor is global. An Oxford Economics survey found that 83% of executives have reported a rise in the use of contingent labor to achieve business goals.

Shifting Employment Expectations

As workforce dynamics continue to evolve, job-seekers are adjusting their employment expectations. Full-time job opportunities may not be as abundant as they once were, but the demand for contingent labor is on the rise. Workforce experts predict that companies will increasingly adopt contingent labor and project-based work to meet their evolving needs.

The Growing Prevalence of Contingent Labor

According to the U.S. Bureau of Labor Statistics, approximately 80% of employers use contingent labor, and this number is expected to grow in the coming years. Job consultants, freelancers, and independent contractors offer immense value to organizations by providing flexibility and versatility to address urgent business needs. Additionally, organizations are recognizing the cost-saving benefits of utilizing contingent workers in place of full-time employees.

Benefits of Contingent Labor

Contingent labor offers numerous advantages to both employers and employees:

• Flexibility: Employers can quickly scale their workforce up or down based on project demands.
• Cost Savings: Organizations save on costs associated with full-time employment, such as benefits and long-term commitments.
• Access to Specialized Skills: Contingent workers often bring niche skills and expertise that might not be available within the existing workforce.
• Speed to Market: Projects can be executed more rapidly with the availability of skilled contingent workers.

Challenges and Considerations

While contingent labor presents many benefits, it also comes with challenges that organizations need to address:

• Integration: Ensuring that contingent workers feel included and valued within the team can be difficult.
• Compliance: Managing legal and regulatory requirements for contingent workers can be complex . Make sure you have a strong contingent labor partner that can advise of you new laws and regulations.
• Quality Control: Maintaining consistent work quality and productivity among contingent workers requires effective management and oversight.

Best Practices for Leveraging Contingent Labor

To maximize the benefits of contingent labor, organizations should consider the following best practices:

• Strategic Planning: Develop a clear strategy for integrating contingent workers into your workforce.
• Effective Onboarding: Provide thorough onboarding and training to ensure contingent workers understand your organization’s culture and expectations.
• Continuous Communication: Maintain open lines of communication with contingent workers to address any issues and keep them engaged.
• Performance Management: Implement systems to monitor and evaluate the performance of contingent workers regularly. Your contingent labor partner will be able to help you with performance management.

If your organization is looking to supplement its workforce, consider leveraging contingent labor. This approach not only expands your pool of talented resources but also supports qualified workers and their families. Contingent labor presents a unique “win-win” scenario for employers and employees, highlighting the promising future of the workplace in 2024.

As the landscape of work continues to evolve, partnering with the right staffing solutions provider is crucial. At Acara, we specialize in sourcing and filling contingent labor needs to help your organization stay agile and competitive. Whether you need skilled freelancers, project-based workers, or long-term contractors, our expert team is here to support you every step of the way.

Contact us today to get started.

The post The Future of Contingent Work in 2024 appeared first on Acara Solutions.

Despite the attention that contract labor has been receiving in recent months, many people still don’t comprehend the purpose of a contingent workforce. I’m here to simplify this concept and illustrate the tremendous value that contract workers can bring to your organization.

What does the term “contingent workforce” mean?

Believe it or not, contingent workers are not actually employed by the company that they work for. Rather, these individuals work under a pre-determined contract or on a temporary, as-needed basis. Contract workers are critically important for organizations faced with pressing short-term needs. For example, if a company has an urgent project that needs to be completed, a contingent employee can be hired to assist with the assignment. Upon completion of the task, the worker is free to explore outside opportunities with other companies.

What are the advantages of maintaining a contingent workforce?

It can often be tedious and time-consuming – not to mention expensive – to manage and monitor your population of contingent workers. By outsourcing this segment of your workforce to a trusted staffing partner, your organization will be stripped of this organizational and administrative trouble. In terms of cost savings, you’ll no longer have to support your workers’ health insurance and other costly benefits. Plus, you’ll be awarded increased flexibility to evaluate your organizational hiring needs on a regular basis. Being able to quickly hire temporary employees to account for seasonal peaks or assist with pressing business undertakings will help to optimize operations while slashing your budget.

Can contingent workers be hired full-time?

Of course! If you’ve been impressed by a contract employee’s work and your organization has the capacity to bring them on in a full-time role, many staffing firms offer contract-to-direct conversions at no charge. The worker will possess an intimate understanding of your organization, thereby slashing the costs and burdens associated with employee onboarding and readiness training.

Do contingent workforces represent the future of work?

Since the outbreak of COVID-19, we’ve seen firsthand how unpredictability can be a business’s worst nightmare. For most organizations, long-term labor needs and future hiring swings can be tough to predict. By leveraging a population of contingent workers, however, companies can nimbly ramp up or scale down the size of their workforces without having to worry about troublesome layoffs, furloughs, or other tough employment decisions. Because of increased flexibility, added compliance benefits, and reduced costs that accompany the outsourcing of contract work, it is safe to assume that contingent employees represent the future of work.

To learn more about how contract work can benefit employees and employers alike, check out our latest Acara blog.

The post The Upside of Converting to Contingent Labor appeared first on Acara Solutions.

Overseeing these contingent initiatives can be incredibly time-consuming, forcing your internal resources to push other priorities to the backburner. A master vendor program, master vendor solution, or MVP, is a way to both enhance your contingent workforce and give back time to your direct employees. 

What is a Master Vendor Program?

A Master Vendor Program (MVP) is a contingent workforce management solution in which a single vendor serves as the primary supplier of temporary staffing for a client organization. In this setup, the master vendor is responsible for all aspects of managing contingent workers, including sourcing, recruiting, onboarding, invoicing, compliance, performance management, and offboarding. The master vendor enjoys preferred status, receiving priority in filling requisitions, and only involves other suppliers when unable to fill a position.

The MVP solution typically involves a contractual agreement between the client company and the master vendor, specifying the program’s expectations, service levels, and pricing structure. As needed, the master vendor collaborates with a network of staffing suppliers to meet the client’s temporary staffing needs. Some MVPs specialize in specific industries or job functions, while others have expertise across various sectors.

Related: E-Book: Master Vendor Programs: The Key to Your Contingent Workforce’s Success

According to Law Insider, organizations can hire a master vendor partner to source temporary workers from their own labor pools while managing the entire contingent labor supply chain. Rather than maintaining individual relationships and adhering to specific contract terms with each supplier, organizations will only need to keep in contact with their master vendor provider. 

Related content from Aleron Group partner Broadleaf Results: Infographic: Managed Service Program (MSP) or Master Vendor Program (MVP) 

Here are some of the key benefits that a master vendor program (MVP) can offer your company. 

1 – Fully scalable programs 

Acara’s master vendor programs are customized to align with your organization’s specific workforce objectives, and the size of our team can be scaled to support ebbs and flows in your hiring needs. If you’re faced with a dramatic uptick in staffing requisitions, we’ll bring on more recruiters to aid this spike in demand. A good MVP provider is well equipped to support any talent challenges that come your way. We can also fulfill all client-specific skill testing or onboarding procedures, including drug and background screenings. 

Related: Creating a Master Vendor Solution for a High-Tech Semiconductor Client 

2 – Greater cost savings 

Contingent labor is almost always more cost-effective than hiring a workforce chock-full of salaried employees. In a master vendor solution, your organization will gain access to a comprehensive view of all contingent labor spend. If we identify suppliers using inaccurate rates, we’ll put an end to this costly rogue spend to generate significant savings for your organization. Centralizing all contingent labor through a master vendor program will also drive more aggressive pricing due to a high volume of spend, resulting in immediate savings to your bottom line. 

Related: Optimizing Contingent Labor: The Benefits of a Master Vendor Program

3 – A single point of contact 

A master vendor program will manage all supplier interactions on your behalf. Acara provides our clients with a single point of contact for all master vendor engagements to streamline and simplify operations throughout all stages of the recruitment process. You’ll no longer have to worry about tracking down a supplier or two—we’ll take those problems off your hands. 

Related: Master Vendor Solution: Streamlines Contingent Labor Needs and Enhances Diversity Recruiting Strategy 

4 – One consolidated invoice 

Rather than receiving dozens of invoices from suppliers across the country, a master vendor solution provider will consolidate all invoices into one. Your organization won’t be responsible for paying each supplier individually, preserving valuable time for your internal resources. 

5 – A commitment to reporting and analytics 

Because all program metrics run through the master vendor provider, data can be more easily tracked, and performance more effectively measured. Greater transparency around all aspects of the contingent labor program will enable your organization to operate more efficiently. 

Summary 

A master vendor program can be the ultimate solution to enhance the quality and overall performance of your contingent labor program. The main objectives of an MVP are to centralize all spend and management of your temporary staff, maximize cost savings, and give your talent acquisition team more time to focus on other crucial job duties. 

With a single point of contact and dedicated program team, Acara can streamline your contingent workforce through a customized solution that meets your unique needs. 

Acara’s master vendor solution presents the perfect answer to address the pain points associated with the management and oversight of your temporary workforce. Have a question about our master vendor solution? Contact us today, or take our MVP Quick Assessment to find out if an MVP is right for you.

Related: Managed Service Program, Master Vendor Program, or Both? Finding the Right Workforce Solution for Your Business 

This blog was written by Director of Enterprise Sales Derrick Ryskamp. 

The post The Benefits to a Master Vendor Solution appeared first on Acara Solutions.

What is an MVP solution?

A Master Vendor Program is a contingent workforce management solution where a single vendor acts as the primary supplier of temporary staffing to a client organization. In this solution, the master vendor is responsible for coordinating and managing the supply of contingent workers—from sourcing and recruiting to onboarding, invoicing, compliance, performance management, and offboarding. The master vendor (or primary vendor) has preferred status and is given priority for sourcing and filling requisitions and will only bring in other suppliers when they can’t fill the position.

The MVP solution typically involves a contractual relationship between the client company and the master vendor, which outlines the program’s expectations, service levels, and pricing structure. The master vendor then works with a network of staffing suppliers to fulfill your temporary staffing needs. Some MVPs specialize in specific industries or job functions, while others have experience working across various sectors.

Benefits of using an MVP solution

MVPs offer several benefits to organizations that rely on contingent workers, including:

• MVP owns recruitment with an 85-95% fill ratio
• Enhanced responsiveness, quality submittals vs. quantity, and quickest to submit
• Dedicated program and recruitment team with a single point of contact
• Standardized and efficient processes with consistent onboarding and compliance metrics
• Complete performance reporting with the Vendor Management System (VMS) tool
• Economies-of-scale pricing to create significant cost savings

Related: The Benefits to a Master Vendor Solution

Who uses an MVP?

MVPs are typically used by large organizations that have a significant contingent workforce or temporary staffing needs. These organizations may include corporations, government agencies, healthcare facilities, and educational institutions. This solution suits organizations with many suppliers who want to simplify their management and reduce costs. This solution can often be utilized in conjunction with an MSP program. In addition, MVPs can be particularly useful for organizations with a demand for similarly skilled workers and those operating in multiple locations.

What is an MSP?

A Managed Services Program (MSP) is a type of business processing outsourcing (BPO) that helps organizations manage their contingent workforce or temporary workers. Contingent workers can include contractors, freelancers, temporary employees, and other types of non-permanent staff. An MSP is a model where a managed services program provider oversees the entire contingent workforce program, including multiple suppliers. The MSP acts as the primary point of contact between your organization and the suppliers, managing every aspect of the contingent workforce program, from sourcing and recruiting to contract management, invoicing, and reporting. This includes facilitating requisitions, interview coordination, oversight of hiring and onboarding, sending invoices, payment processing, and reporting and analytics. The MSP will effectively align the right combination of suppliers—with proven performance in job categories specific to your organization—to provide an assortment of high-quality candidates that compete for each of your contingent hiring needs.

The MSP solution typically involves a contractual relationship between the client company and the MSP provider, which outlines the responsibilities and obligations of both parties. While the specific terms and conditions may vary based on the agreement, commonly addressed aspects include the scope of services, service level agreements (SLAs) and key performance indicators (KPIs), and governance and dispute resolution.

Related: What is MSP? Managed Service Programs: Explained

Benefits of using a managed services program solution

MSPs offer several benefits to organizations that rely on contingent workers, including:

• Multiple vetted diverse and uniquely skilled suppliers—with proven performance in job categories specific to your organization—all on a level playing field
• A highly agile model that can be seamlessly scaled up or down to adjust to market demands
• A program built to manage all labor categories across all locations while ensuring the highest candidate quality and most competitive rates
• A suite of technology provides advanced workforce analytics and reporting and viability into spend
• One contract and consolidated invoicing on one billing cycle
• Greater visibility into costs across 16 categories resulting in 8-20% savings
• Supplier-funded, ensuring no additional cost to your organization
• Reduced contingent labor lifecycles and time-to-fill rates

Related: How MSPs Drive More Holistic Total Talent Acquisition Solutions

Who uses an MSP?

Medium to large-sized companies across various industries utilize MSP solutions. If your company oversees a sizable or diversified contingent workforce population, you can consider outsourcing the management of these workers to an MSP provider. An MSP will improve recruiting process efficiency and assist in building a more robust applicant pipeline for your business, bringing in a steady stream of top talent.

Which is suitable for your company?

There is no one-size-fits-all answer to whether an MVP, MSP, or both is the right choice for your organization. A workforce solutions provider can assess your organization’s specific needs, objectives, and available resources to gain insights and guidance tailored to your situation and assist in making an informed decision. Regardless of your talent acquisition challenges, Aleron can work with your team to craft workforce solutions that deliver exceptional results.

Contact us to learn more about MVP and MSP. You can also complete our MVP Quick Assessment to see if an MVP is right for your business.

This blog was written by Derrick Ryskamp.

The post MVP or MSP?: That is the Question appeared first on Acara Solutions.

By 2027, it’s predicted that 86.5 million people will be working as temporary or gig workers or independent contractors, also referred to as contingent workers. Organizations are looking toward contingent labor to help bridge their talent gaps, provide greater flexibility, and optimize their workforce. In fact, contingent workforce participation is projected to increase by 53 percent globally and 26 percent in the U.S. in 2023. Contingent labor provides a more streamlined approach for human resources and operations to identify workers and quickly adjust to unexpected changes.

Here are five ways to utilize continent labor during an economic downturn:

1. Transition away from the direct hire model: The COVID pandemic and Great Resignation induced an overly used direct hire workforce model. The job market bounced back quickly, causing employers to hire permanent employees with inflated wages due to talent scarcity. With a possible recession, companies are returning to a more temp-to-hire-focused contingent labor model, allowing them to maintain flexibility in their staffing levels without committing to a large permanent workforce. This approach:

• Enables organizations to hire temporary workers on a trial basis before deciding whether to offer them a permanent position.
• Offers a cost-effective way to assess workers’ skills and alignment with your company culture before committing to a long-term employment agreement.
• Provides a more flexible workforce reduction solution and less public sign of a company’s financial situation when required to cut costs or restructure. Reducing the number of contingent workers is simpler than conducting mass layoffs.

2. Learn from the 2008 recession: Keeping a flexible 30 percent contractor headcount using contingent labor became a widely implemented model during and after the last recession. In 2008, many companies were forced to make difficult decisions about their workforce to reduce costs and maintain profitability. Those companies that had already developed a variable workforce and utilized contingent labor were better positioned to manage these challenges. By keeping a flexible 30 percent contractor headcount using contingent labor, companies can maintain the agility and flexibility needed to respond to changing market conditions to help them better manage their costs and maintain profitability during economic uncertainty.
3. Protect your organization from a double-dip recession: A double-dip recession is a term used to describe a recession that occurs in two distinct phases, with a period of economic recovery between them. In a double-dip recession, the economy experiences a period of decline, followed by a brief period of recovery, and then another period of decline that’s typically worse than the first. A double-dip recession can be particularly challenging for businesses, as it can create a sense of uncertainty and make it difficult to plan for the future.

Contingent labor can be a valuable tool to protect your business from the impact of a double-dip recession because you’re not committing to direct placements before having a grasp on economic conditions ahead. During a downturn, utilizing contingent labor allows you to make quick and difficult decisions about your workforce to reduce costs and stay competitive.

4. Leverage payrolling/employer of record (EoR) services to help slowly bring back valuable staff as contingent workers for short-term project work while minimizing risk. By serving as the employer of record, a recruitment agency (like Acara) takes care of critical administrative work and assumes responsibility for various costs and liabilities—like taxes, unemployment insurance, workers’ compensation, and benefits—associated with these non-permanent workers. This can be a significant relief for your company, help your bottom line, and allow your permanent employees to focus on other areas of your business.

Related: What is Employer of Record—and Why Is It So Beneficial in Today’s Recruitment Landscape?

5. Benefits: Staffing firms can be relied on for affordable contingent labor when your company wants to cut back on benefit payments. Staffing agencies may be able to negotiate better rates for benefits like health insurance or retirement plans due to their larger size and bargaining power. Using a staffing agency can also help to reduce the administrative costs associated with managing employee benefits. For example, the staffing agency may handle enrollment, claims processing, and other administrative tasks, saving your business time and money.

Related: Why Utilize Temporary Staffing Services

The bottom line

Developing a variable workforce consisting of temporary contract workers and permanent employees can provide your company with greater flexibility and resilience during times of economic uncertainty. Therefore, a contingent workforce should be a critical component of your talent strategy, not just a short-term solution. Engaging with temporary workers gives you the flexibility to adjust your labor needs quickly and strategically while reducing costs and minimizing your risk to win out over your competition and grow your business.

Related blog from Aleron Group partner Broadleaf: Using an MSP Solution to Recession-Proof Your Talent Strategy

Acara can help

Strategic business and talent planning are more important than ever. Acara consults with you and your team about your contract employment needs, taking stock of your entire workforce. Acting as your temporary employment agency, we assess your challenges and pain points and work to pinpoint the most qualified candidates who are the best fit for your business. Contact us here to learn more about how we can improve your organization’s workforce and operational efficiencies.

This blog was authored by Damian Scandiffio.

The post Five Ways to Utilize Contingent Labor During an Economic Downturn appeared first on Acara Solutions.