Contingent workforce management - what is it and how can you manage it?
In an era defined by agility and fast-paced innovation, more businesses are turning to contingent workers to remain competitive. Whether it's scaling fast for a high-impact project or accessing niche expertise on demand, hiring a contingent workforce is now a strategic move for growth and efficiency.
In this article, we’ll explore what a contingent workforce is, why it matters, and how you can manage it effectively for maximum impact.
What is a contingent workforce?
A contingent workforce is made up of individuals - commonly known as freelancers or contractors - who are engaged by a business on a non-permanent basis. These professionals are typically brought in to deliver on fixed-term projects or to provide extra capacity when internal teams need support.
Freelance workforces have been a staple for many companies over the years but since 2020, the pandemic accelerated this shift. All kinds of industries are turning to embracing contingent workers as a flexible, scalable solution to evolving talent needs.
Benefits of hiring a contingent workforce
More companies are recognising the value of blending internal teams with a trusted network of expert freelancers. Here are some of the key advantages:
1. Build capacity quickly
Project timelines can be unpredictable. Hiring flexible talent gives you the immediate capacity to meet deadlines without overburdening your internal team. Freelancers are accustomed to hitting the ground running and adding value from day one.
2. Access in-demand expertise
Contractors and freelancers often specialise in specific fields, from UX design to data analysis, and bring deep subject matter expertise. This allows you to plug in exactly the skill set you need, without the long-term commitment of a full-time hire.
3. Accelerate project delivery
More hands, paired with the right skills, mean faster delivery. By complementing your in-house capabilities with external talent, you’ll streamline execution and meet your goals more efficiently.
4. Save time and money on hiring
Traditional hiring processes can be lengthy and expensive. A contingent workforce management solution like YunoJuno allows you to quickly source and engage pre-vetted talent, skipping the drawn-out recruitment cycle entirely.
5. Ensure compliance without the headache
Managing contracts, NDAs, right-to-work-checks, W2, and other legal requirements can be a challenge, especially across regions. Platforms like YunoJuno automate compliance workflows, saving time for your legal, finance, and HR teams and ensuring your business stays protected.
| Aspect | Employee | Independent Contractor |
|---|---|---|
| Control and supervision | Direct control over how, when, and where to work | Freedom to set their own schedules and methods |
| Payment | Regular wages; taxes withheld by employer | Paid per project; responsible for their own taxes |
| Benefits | Health insurance, retirment plans, paid leave | Must arrange their own benefits |
| Termination | Often requires notice and may include severance | Can usually be terminated at any time without benefits |
| Tools and equipment | Provided by the employer | Typically use their own tools |
How to effectively manage your contingent workforce
Managing a contingent workforce requires a different approach than managing permanent employees. From onboarding to compliance and performance tracking, it’s essential to have the right processes, and tools, in place to keep everything running smoothly.
Here’s how to do it effectively:
1. Centralise sourcing and onboarding
Rather than relying on spreadsheets, emails, and disparate platforms, use a centralised freelance management system (FMS) to streamline how you find and engage talent. With platforms like YunoJuno, you can:
- Access a pre-vetted pool of freelancers with the right skills
- Filter by availability, experience, rates, and compliance readiness
- Issue contracts and NDAs in a few clicks
- Kickstart projects faster with instant onboarding
A central platform ensures consistency, reduces admin, and eliminates the delays of traditional recruitment processes.
2. Ensure compliance
Every market has its own regulations around contractor status, taxation, IR35 (in the UK), W2, 1099 (in the US) and worker rights. One of the biggest risks of scaling your contingent workforce is non-compliance, especially when hiring across borders.
Best-in-class FMS platforms:
- Automate classification determinations and record keeping
- Ensure classification is correct through role-specific assessments
- Handle local tax and documentation needs
- Keep you up to date with evolving legal frameworks
This not only protects your business but also builds trust with your contingent workers.
3. Standardise contracts and payment workflows
Freelancers value prompt, reliable payment. Internal teams need visibility and control over project budgets. Standardising contracts and payments with automation is essential for:
- Reducing payment errors and disputes
- Ensuring terms are consistent and legally sound
- Aligning Finance, HR, and Legal on freelancer engagements
- Offering payment methods that suit global talent (e.g., local currency)
Platforms like YunoJuno automate invoicing and approvals, helping you maintain strong relationships and a professional experience for freelancers.
4. Track time, deliverables, and performance
Unlike permanent employees, contingent workers are often outcome-driven. That makes performance visibility critical. Tools that allow you to:
- Track time and project milestones
- Attribute time to specific budgets or departments
- Capture feedback and rate freelancer performance
Can help you make informed decisions about re-engaging talent and identifying your top performers. You’ll also be able to report on spend, project efficiency, and ROI across your flexible workforce.
5. Build and maintain a private talent pool
Once you've worked with great freelancers, keeping them close is essential. Create a private bench of trusted talent that you can call on again and again.
With a freelance management system, you can:
- Save and tag high-performing contractors
- Group talent by department, region, or skill
- Notify your favourites when new work becomes available
This reduces hiring time dramatically and builds institutional knowledge within your freelance pool.
6. Offboard with care
Even if the engagement is short-term, professional offboarding matters. Use a consistent process to:
- Close out projects
- Collect feedback
- Update compliance records
- Prompt repeat engagement for future opportunities
This ensures a smooth wrap-up and increases the likelihood of high-calibre freelancers returning when you need them most.
In short, effective contingent workforce management combines:
- Smart systems
- Clear processes
- Cross-functional collaboration
- A focus on freelancer experience
YunoJuno brings it all together in one platform, so you can scale your workforce confidently, compliantly, and with minimal friction.
The future of work is flexible
As the world of work continues to evolve, businesses that embrace a flexible talent strategy will be better positioned to adapt and thrive. Whether you need to scale a team quickly, bring in specialised skills, or reduce overhead, leveraging a contingent workforce is a smart, future-ready move.
