Contingent-Workforce Recruitment Program: What it is and why your Company Needs One

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contingent recruitingCorporations often segment initiatives as part of their comprehensive recruitment plan. These initiatives are intentionally designed to operate separately from the typical external recruitment process, although there’s a certain degree of collaboration among recruiters allocated to support these specific functions. The success of each program is measured and often hinges on the budget and attention invested in them. While some of these programs boost employee morale and project good corporate citizenship – all admirable traits – the true recruitment advantages extend beyond morale-boosting and commendable acts.

These collective programs form the backbone of most workforce strategies. Data is tracked, and performance is assessed with the anticipation that the right strategy is implemented and executed to a degree that makes a difference. However, one area of the recruitment plan that is often undervalued as a legitimate program is the contingent workforce or temporary contract recruiting. This function might have been overlooked because it supports temporary hiring, not direct hiring, as the other programs do. It might also be that this recruitment function is outsourced to external recruiters, so it doesn’t appear as a significant part of the recruiters’ workload plan, or perhaps funding is allocated through a department other than Human Resource. The fact is, corporations should develop a *Contingent-workforce Recruitment Program (CRP). Contingent or contract hires often present low-risk, high-reward, and cost-efficient solutions. Let’s explore these existing programs and the benefits they yield:

  • College Recruiting Program: This can be a crucial branding component. Companies often see a higher ROI with college hires and tend to have better retention rates.
  • Employee Referral Program: This is typically considered the most successful of the recruitment programs. The Employee Referral Program yields the most hires of all programs. It is the most dependable source for high-quality hires and generates a high retention rate.
  • Internal Mobility Program: This presents its benefits—cost-effectiveness, known performance history, and a streamlined onboarding process.
  • Alumni Networks or Boomerang Program: This program is gaining momentum. A well-structured program can benefit from an uncertain economy as many high-quality employees reenter the job market. Companies can keep tabs on former top performers and entice them or tap into their referral network.
  • Wounded Warrior Program: These hires bring unique leadership and teamwork skills; they are loyal and often have salary expectations far below the industry average.

So, what is a Contingent-workforce Recruitment Program?

A Contingent-workforce Recruitment Program outlines your strategic approach to employing contract labor. Corporations can design CRP or delegate this function to a Managed Service Provider (MSP). The features and benefits of a Contingent-workforce Recruitment Program can differ depending on the Managed Service Provider; however, corporations that design their own can reap the general benefits this program offers. Here are some reasons why recruitment leadership should implement a CRP:

  1. Broaden your talent pool. Recruiting agencies specialize in networking, recruiting, and closing. Adding more recruitment muscle amplifies your chances of finding the right talent.
  2. ROI. In terms of ROI to cost-per-hire, a contract conversion to hire offers far more benefits than a direct hire:
    • Known performance, skills, and abilities pre-hire increase hiring accuracy and retention.
    • Companies receive a standard 6-month period of performance without vesting 401K, benefits cost, or Paid Time Off accrual.
    • Reduced onboarding time.
    • Less training time (**one study shows the average time companies dedicate to training each employee is 32 days).
  3. Reduced time to fill. A well-developed plan can cut TTF by five days per contractor, providing a significant overall ROI.
  4. Free up internal recruiters’ time (which would count towards cost per hire for a direct hire).
  5. Expand your employee referral network without incurring an employee referral fee.
  6. No legal issues or severance obligations when parting ways with a contract worker.
    Here are some key tips for recruiting leaders when formulating a CRP:
    • Ensure your contractors are evaluated similarly to your Full-Time Employees (FTEs).
    • Establish an alumni network for your contract employees, analogous to your corporate alumni network.
    • Form a “consortium of vendors” and assign a recruiter as an interface to support all of your outsourced job requirements.

    To request our white paper on the Peer to Peer Collaborative Recruiting Network’s Contingent-workforce Recruitment Program, please visit https://www.p2pcrn.com/contact-us/.

    *The term Contingent-workforce Recruitment Program (CRP) is a term I, the author, have created and is not yet acknowledged by SHRM, HCI, or any other Human Resource association.

    **Based on a report from Training magazine’s 2005-2007 study.

 

By Corky Harris