Risk Management in Contingent Hiring: Mitigating Potential Pitfalls

Tame versions involve workers consistently not showing up on time for work or simply demonstrating no work ethic at all to get the job done. Crazier versions include workers showing up to work intoxicated, belligerent, or worse! Bad hiring decisions span both the full-time hiring realm as well as hiring part-time workers. Companies have several levers that they can employ to improve the vetting process for full-time hires: more extensive applicant screening, better targeted interview questions, and performance evaluations, to name a few. But do similar levers exist for contingent, part-time labor? The answer is most definitely ‘yes’, however there are some common pitfalls that companies must navigate to mitigate their risk of making bad decisions when it comes to flex staffing. 

Here are 3 strategies to help mitigate potential pitfalls when it comes to engaging contingent workers:

Strategy #1 - Demand a tried-and-true vetting process from your provider.

Presumably, your company’s recruiting and human resources departments ensure that each full-time applicant undergoes a background check. You should demand the same of your flex staffing provider. In fact, you should demand that your provider has a comprehensive vetting process that not only includes a background check, but includes other elements such as work history verification, live screening, and even training. Having an end-to-end process is critical in mitigating risk. An early-in-career worker might easily pass a background check and sail through a video call screen, but may have zero experience working in a corporate office environment. Training workers on office etiquette, for example, will help alleviate issues around unsuitable clothing or inappropriate dialogue in the workplace.

Strategy #2 - Take the time to spell out all the details for the work to be performed.

Mitigating risk starts with setting specific expectations. And setting specific expectations requires keen attention to detail and ensuring that you’ve documented all aspects of the work to be performed. Obvious details include work location, start time, and any skills that are required. Perhaps less obvious details include what to wear, check-in procedures, and non-disclosure agreements that must be signed prior to starting work. Where should workers park their car? Is there a cafeteria nearby, or should workers plan for their own lunch? No detail is too small. Leading flex staffing providers will guide you through the process of providing as much detail as practicable, ensuring that when your workers arrive at your doorstep, they will hit the ground running! 

Strategy #3 - Measure the output and performance of your flex workers.

As a manager, you have better things to do than keep close tabs on each and every employee, let alone each and every contingent worker. But how do you use your time most effectively and at the same time ensure that you’re getting the expected results from your flex workforce? Best-in-class flex staffing providers will not only ensure that performance data is captured consistently and accurately, but will assimilate this data and report back to you with a digestible summary along with key insights to help you make quick, informed decisions. Data could include hours worked, tasks performed, tickets closed, and issues encountered. Ask your provider how they plan to capture this type of data as well as help you effectively use the data to make business decisions. 

Summary

Every business manager must concern themselves with risk mitigation strategies when it comes to hiring contingent workers. Whether you choose to work with managed service providers, staffing agencies, or labor marketplaces, asking the right questions will save you time and countless headaches down the road. To learn more about how to take advantage of contingent labor for your business, visit us at www.conneq.com.

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