As your company anticipates entering new markets, your organization will require a workforce that can quickly adapt to changing market conditions. The only way to ensure your company optimizes the talent pool is by engaging and embracing a global contingent workforce.
The term ‘global contingent workforce’ refers to the increasing number of workers who are engaged by organizations on a non-permanent basis, such as consultants, freelancers or temporary contract workers. A global contingent workforce enables companies to utilize foreign workers and to tap into specialized remote workers who are not necessarily available in their domestic markets.
In today’s globalized business environment, having a global contingent workforce is becoming the norm. Up to 40% of the US workforce is classified as contingent, a 10% increase from a decade ago. This boom, however, creates several problems, such as labor compliance, data protection, intellectual property risks and the need for a worldwide payroll solution. Here are the top four tips to managing your global contingent workforce and overcoming the challenges facing your company.
The Importance of Transparency and Visibility
Tracking a global contingent workforce can be challenging for the planning, forecasting and budgeting of any company. Many organisations without a centralized system find their data is scattered and complicated to analyse.
In contrast organisations that utilize a central work platform have visibility and transparency at their fingertips, allowing them to make instant decisions when hiring workers, expanding or reducing the scope of work.
The Need for Global Payroll Solutions
Payroll is one of the most complex challenges for a global contingent workforce. International payroll encompasses many factors. People need to be paid on time, while adhering to domestic and international compliance regulations. Managing global payroll in-house requires many resources and an intricate knowledge of local laws, customs and languages. Incorrect payroll not only results in an unsatisfied workforce, but also leaves risk for non-compliance and heavy financial penalties from the host state that can damage your company’s reputation.
Employing the use of an automated payroll system enables your company to perform all the payroll functions that would otherwise have to be completed manually and audited by an accountant. All documentation is stored and issued centrally and always compliant regardless the country and the language.
Managing Your Global Contingent Workforce, The Easy Way
Contingent workers are playing an increasingly larger and more important part in a company’s staffing strategies. When managed correctly, they offer lower labor costs, increased organizational flexibility, better informed staffing decisions and an improved operational performance. Advanced centralized global workforce management platforms provide a much stronger alignment between HR and your overall business goals. Such platforms give your company the tools needed to not only meet the challenges a global contingent workforce presents, but to thrive on them.