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YunoJuno's Contingent Labour Health Check reveals core business challenge

YunoJuno's Contingent Labour Health Check Tools reveals core business challenge
James Orpin
James Orpin
April 25, 2024
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Last September, YunoJuno developed a Contingent Labour Health Check tool to help those working with contractors and freelancers better understand the shape of their spend, benchmark their programmes and identify issues and opportunities.

When we analysed the data collated from respondents over the past 6 months, our findings were really interesting...

Lack of controls for visibility

• There is a consistently low level of understanding of how many contractors are engaged at any one time

• More respondents were not aware of their total contingent labour spend

• However once spend had been identified, the revenue line became something procurement departments saw as a potential lever for value and efficiency

Operational understanding is low

• There is a low level of visibility across key operational areas like how many stakeholders are involved in the hiring of a contingent workforce

• Time to hire varies considerably across our Business Health Check respondents with submissions ranging between 2-5 days and 1-3 weeks

• Ownership of a Contingent Workforce Programme is unclear, raising questions like where does this sit? With procurement? HR? Or across both?

Global compliance confidence a grey area

All respondents have a UK compliance process, and while the majority are confident that they avoid misclassification, 20% lack confidence with Global Compliance - adding increased pressure to businesses to ensure they are protected by tax implications, labour laws, and any specific regulations that may affect remote work arrangements.

Our findings also discovered there was a significant lack of visibility of whether, and how, compliance checks for workers outside of the UK are carried out. 

To ensure a fair and compliant working relationship, a trusted partner is required to tailor contracts to align with local laws and regulations, including payment terms, working hours, and any other relevant clauses to help mitigate legal risks.

Our conclusion is that visibility is key

Without clear visibility clients are unable to embark on ensuring compliance, building simpler process and providing business value in the area of contingent labour. This is an underpinning requirement when assessing the prevalence and magnitude of issues like IR35 and equivalent compliance, and when benchmarking rates and departmental spend. This means that risk could be inherent, with efficiency and effectiveness likely to be below par.

Visibility enables clients to identify opportunities that could drive compliance, efficiency and value. It allows the organisation to know how many stakeholders are involved, how long it takes to hire and finally to identify ways of improving the process.  Knowing how much is spent, by whom and on what types of talent allows you to start a journey towards savings and business value.

How YunoJuno can help

YunoJuno provides clients with total visibility of all critical Contingent Labour dimensions, and is enabling greater compliance, more efficiency and enhanced value.

If you are keen to understand more about your levels of visibility on Contingent Labour in your organisation, YunoJuno offers a free diagnosis of your current Contingent Workforce Management programme, where we can help you streamline processes, identify risks, optimise and save costs.

Complete our online Contingent Labour Business Health Check and let YunoJuno help you benchmark your programme.

AspectEmployeeIndependent Contractor
Control and supervisionDirect control over how, when, and where to workFreedom to set their own schedules and methods
PaymentRegular wages; taxes withheld by employerPaid per project; responsible for their own taxes
BenefitsHealth insurance, retirment plans, paid leaveMust arrange their own benefits
TerminationOften requires notice and may include severanceCan usually be terminated at any time without benefits
Tools and equipmentProvided by the employerTypically use their own tools

Gain full contingent workforce visibility with cost control

Complete Health Check →
Complete Health Check →

Gain full contingent workforce visibility with cost control

Complete Health Check →
Complete Health Check →

Join YunoJuno today

Speak with us today to find out how we can help you save money by managing your external workforce.

Are you a freelancer? Join YunoJuno

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