Business today must be flexible than ever before. Globally, organizations are focused on creating an agile workforce comprised of both employee and non-employee workers to deal with increase competition and rapidly changing market conditions.
The usage of contingent workforce management has risen dramatically in recent years as a result. Contingent workforce management increasingly being use by companies for both strategic reasons. Such as supplementing internal talent capability, and operational reasons, such as increasing flexibility and responsive.
The same study estimates that some large companies spend up to 30% of their procurement budgets on contingent workers.
It makes sense that organizations are turning their payroll expenses from a fixed cost to a variable cost by using contingent workers.
However, paying independent contractors is very different from paying your employees.