4 Tips on Getting Started Building a Successful Contingent Workforce Program

Contingent work has become a critical workforce component for organizations facing ongoing socioeconomic and political shifts. A flexible workforce enables businesses to quickly adjust to market changes, new regulations, and shifting demands without the constraints of traditional employment models.

By tapping into specialized talent as needed, companies can scale operations efficiently while maintaining cost control. And as global labor markets continue to evolve, leveraging contingent talent ensures businesses stay agile, competitive, and resilient in an unpredictable environment.

In this blog post we are going to discuss essential considerations in building a successful contingent workforce program, including flexible work models, a focus on skills, breaking down silos, and leveraging the right tech.

1. Adopt Flexible Work Models

The rise in contingent work is closely tied to the desire for greater flexibility among workers. Many professionals are rethinking traditional career paths and seeking more autonomy, work-life balance, and projects that align with their values.

As the gig economy continues to expand, companies must adapt to this shift by implementing flexible work models that allow workers to pursue meaningful, fulfilling opportunities while still contributing to organizational goals. This might include offering part-time, freelance, or contract roles that can be adjusted based on worker preferences and business needs.

Incorporating flexibility into organizational workforce strategy not only attracts top talent but also helps improve employee satisfaction, retention, and engagement. This is because workers are increasingly prioritizing roles that offer more control over their schedules, location, and workload.

In embracing flexible work options, organizations position their business as a progressive employer that values innovation, autonomy, and the personal well-being of its workforce, which ultimately benefits both the company and its employees.

2. Focus on Skills and Expertise

Contingent workers today are highly skilled professionals who bring specialized expertise to the table. Fields such as IT, healthcare, finance, and engineering are seeing a growing number of highly qualified individuals choosing short-term assignments instead of traditional full-time positions.

These professionals value the ability to curate their careers based on passion and lifestyle rather than tenure. As a result, organizations need to shift their mindset about contingent workers, recognizing them as valuable contributors to key projects and business success.

To attract and retain skilled contingent workers, organizations should focus on sourcing talent based on their skill sets rather than simply availability, or traditional qualifications like degrees. Instead, they can build a contingent workforce strategy that identifies and targets high-demand skill sets and utilizes proven skills-based talent strategies that will add value to the business. Learn more about leaning on skills versus qualifications and how to win top talent in the market.

Additionally, offering competitive pay rates, as well as flexibility in work arrangements, will allow them to gain a competitive edge for recruiting top-tier professionals. While refining that approach, ensure that the projects or assignments being offered appeal to the ambitions of skilled workers, guaranteeing both talent satisfaction and long-term success for the organization.

3. Break Down Silos

One of the main challenges companies face in managing a contingent workforce is the siloed approach to managing different types of workers. For example, procurement teams may handle Statement of Work (SOW) workers, while department heads might manage freelancers or temporary employees through various internal processes.

This fragmentation leads to inefficiencies, making it harder to track performance, ensure compliance, or even fully understand the capabilities of the workforce. It’s critical to address this by unifying the management of all contingent workers under one system or team.

A more integrated approach will allow the organization to centralize the management of the contingent workforce, providing greater visibility and control. This streamlined method enables better coordination across teams, reducing administrative overhead and minimizing the risk of compliance issues. Discover why streamlining contingent workforce management is critical to program success.

When all contingent workers are managed through one cohesive framework, organizations also benefit from clearer communication, improved talent alignment, and more effective decision-making, which ultimately leads to more successful workforce outcomes.

4. Leverage Workforce Management Technology

The future of contingent workforce management lies in leveraging technology to centralize, optimize, and gain insights into talent pools. Traditional methods of managing contingent workers through multiple systems and vendors can result in fragmented data, making it difficult to assess performance, compliance, and cost efficiency.

Investing in an integrated workforce management (IWM) platform is a game changer, offering a single source of truth for managing all types of contingent workers, from freelancers to contractors and SOW professionals.

An IWM platform streamlines processes, providing centralized dashboards that give teams real-time insights into the contingent workforce. This visibility empowers organizations and leaders to make informed decisions regarding talent allocation, budgeting, compliance, and performance.

Additionally, advanced technologies like Artificial Intelligence (AI), such as Magnit’s Gen-AI Agents, and data analytics can help forecast workforce needs, reduce costs, and ensure compliance across the board. By embracing these tools, organizations not only improve operational efficiency but also position the business to make smarter, data-driven workforce decisions that drive success in the long term.

Interested in unlocking the full potential of your contingent workforce? Download the quick start guide today. 

Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of Magnit and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.