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Contractor Management

Contractor Management Outsourcing – The ‘What’ and ‘Why’

contingent workforce imageAustralian businesses, like many global businesses,  have experienced significant changes in the approach to how the workforce is made up and managed. With the increase in contingent workforce numbers, there has been a noted increase in contractor management outsourcing. A major driver in this change has been the growing complexities of juggling various types of employees, most often in the form of full-time, part-time, job share, short and long term projects and satellite workers.

Why use a contingent workforce?

A strong contingent workforce is an essential part of a risk-averse talent pool. Contractors ensure your access to appropriate skills for critical roles, which is something not always achievable when recruiting for permanent positions. A lot of businesses find however, with the employment of more contractors comes greater risks and more administration headaches.

Note: For more information on Contingent Workforce, visit a recent blog of ours: THE CONTINGENT WORKFORCE-What is it and why it is increasingly being used for strategic reasons in businesses

About outsourcing Contractor Management

A way of combating this is through contractor management outsourcing. Outsourcing management of temporary workers, specialists, contractors and consultants is becoming more common as companies realise the benefits. Contractor payroll and management outsourcing is a growing trend among corporates as a solution to manage the back office complexities that come with a large contingent workforce, which greatly minimises risks and takes administrative pressure off HR departments. This is because by law, contractors need to be managed in a very different way than permanent employees, which most often results in HR departments feeling that added burden and risk.

Employing contractors can be complex with specific legislation covering everything from how contracts are drafted to how employment and payment is structured. Due to this, companies often find having access to someone with an expert understanding of these compliance matters and who can help ensure financial and contractual risks are minimised is preferable to managing it in-house.

Direct benefits of Contractor Management outsourcing

Companies that specialise in contractor payroll management will customise a solution to suit the specific needs of the business, from a complete tailored solution through to insurance cover for individual contractors. This allows the business to experience more control in dealing with their contractors quickly and directly.

If a business seeks to engage a contractor payroll and management company that provides genuine efficiency, expertise, cost savings, and flexibility through a robust and scalable platform, they’ll simply find they have a highly recommended, hassle-free way of effectively making a contingent workforce work for them.

If you are interested in finding out more about how we can assist you and your business, contact us today.


Purnima Kabra