How to Manage a Contingent Workforce

by Roberta Chinsky Matuson

Organizations no longer use temps just to fill in for vacationing receptionists. Now, temporary workers are found in a variety of businesses, including those in need of unskilled labor and seasonal employees, and in companies whose workflow and talent demands vary.

If history repeats itself, the demand for temporary employees will increase significantly as we pull out of the recession. Develop a solid game plan now, and you will be one step ahead of your competitors.

No Time Like the Present

Marty Goober, managing partner of Overture Partners LLC, an information technology contract services company in Newton, Massachusetts, says this is the time to build relationships with your vendors. "Use your vendors as a strategic tool," advises Goober. "You should be revisiting your list of vendors and upgrading your list. This way when your projects hit, you will have the first opportunity at the best available talent."

Minimizing Risk

Just-in-time labor mitigates the risk of adding to your head count, notes Pam Murray, president of Boston-based Veritude, a Fidelity Investment company. Murray advises companies consider the following when deciding on whether to bring on a full-time hire or temp:

• Does this project have a start and stop date?
  
  
• Can the work be completed with a six-month person?
  
  
• Is this a revenue item with questionable longevity?
  
  
• Is your organization looking for elasticity? <

If you answered yes to any of these questions, then contingency workers might be in your future.

Integrating Temps into Your Workforce

At Lands' End, in Dodgeville, Wisconsin, contingent workers are part of the culture. Diane Huza, director of recruitment and development, is a prime example. She started her career at Lands' End as a flex worker.

"We bring in more than 3,000 temporary employees a year to handle our peak holiday season, and the company retains many of the flex employees all year long," says Huza. "This model has been used at Lands' End for as long as I can remember."

The company treats employees like part of the family, even when they are not actively employed during nonpeak times. Furloughed employees, who commit to returning to the company when business needs arise, can use their employee discount for purchases throughout the year.

Way of Life

Wirefab Inc., a Worcester, Massachusetts, manufacturer of wire products, uses temp services to supply unskilled labor. "Hiring temporary employees gives us the opportunity to evaluate people prior to putting them on the payroll," says James Samsel, president. As a result, turnover has been limited, which has been cost-effective for the company.

Vendor Selection

The best way to find a vendor specializing in the placement of contingent workers is through referrals. Ask your peers at other organizations for the names of temporary staffing companies that have serviced their accounts well. Murray adds that it is important to find a vendor that can meet your specific needs. If you're looking for IT professionals, for example, you may be better off with an agency that specializes in IT placements.

Companies that plan on hiring a large number of contingent workers should look for a firm that offers centralized invoices and on-line timecards. This way, you won't find yourself hiring a temp just to manage all of the paperwork generated by numerous service providers.

Other Tips

Huza says a good plan is key to hiring a solid contingent workforce. She also believes it is critical to work closely with front-line leaders and managers to ensure everyone is on the same page.

Accurate job descriptions are vital, according to Murray. They enable firms like hers to find candidates with the right fit. Candidates who fit better are more likely to complete their assignments.

Goober encourages his clients to be open to ideas expressed by contingent workers. "They have a lot to contribute since they are usually coming in with a fresh approach," he says.

Keep in mind that many contingent personnel are temporary workers by choice. They enjoy moving from company to company and taking on new challenges. Treat them well, and you will reap the benefits of having flexibility in your workforce as well as a constant stream of new ideas.