Staff Augmentation and SOW Contingent Workforces
Non-employees, or contingent professionals, are an integral component of a strategic workplace. But with temporary hires, many questions come into play from the simple to the more complex. Do we extend the same benefits we do to permanent employees? Are they a part of annual planning and strategy? How do we make them feel like a valued team member when their time on board has an expiration date? To date, we haven’t faced a bifurcated workforce to this extent, so there is still much trial and error in the process of sorting through such scenarios.
Contingent workers can be divided into two primary groups in terms of the way an organization employs them: Staff Augmentation and Statement of Work contractors.
Companies utilize contingent labor in the form of Staff Augmentation when they choose not to hire directly, and instead go through a staffing firm to find and provide contract professionals. Typically, an organization employs this method in an effort to maintain a legal separation from contingent and full-time workers. This labor force is typically hired only for the life of a project and has a clear ending date – back-filling for maternity leave, launching a product or annual tax preparation, for example.
Another common classification of contingent hiring happens through Scope of Work terms. When an organization hires these workers, it is typically because it has a particular challenge that needs to be addressed in the short term. The organization works directly with an IT company, for instance, to bring on a specialized team for a specific technology implementation or company-wide upgrade and employee training program until the issue is resolved. Employing contingent labor in this way is more affordable than working through a staffing firm, but it involves more risk as the employees are not vetted by the organization but by the vendor.
The reality of the contingent workforce is that it is growing in size and significance. In fact, it’s expanding exponentially as uncertainty and “fiscal cliffs” afflict the economic forecasts. Contingent labor allows for organizations to pay for talent on an as-needed basis, and also gives access to specialized professionals that couldn’t otherwise be afforded on a full-time basis.
Here are some best practices to keep in mind when hiring contingent professionals:
- Set guidelines up front. Will you want your contingent professionals to be instilled in the company culture as much as possible? Do you grant them access to company amenities? Will you provide benefits? Put it all in writing.
- Seek legal counsel. Once the plan has been drafted, have it reviewed by an employment lawyer. This may feel excessive, but it will save in time and resources on the backend in the case that something goes wrong. This step is most important when hiring through Scope of Work (versus Staff Augmentation via a staffing firm) to avoid any legal risks.
- Be 100% transparent. When bringing in contingent workers, no matter the type of association, review with each of them exactly what benefits, privileges, etc. they will and will not be granted during their time with the company.
The most important thing to remember is the value of holistic talent strategy development. Your organization may choose to keep contingent professionals as an entirely separate entity when it comes to logistical matters, but there will likely be times when it is necessary to bring all employees together to plan or strategize. Projects that call for team collaboration should be organized and managed as such for the best end product.
Cindy Lubitz is Managing Director of inTalent Consulting Group