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Managed Services
Offering business managers a contingent labor solution that retains business knowledge within the enterprise, adds flexibility with regard to headcount, reduces labor costs, and mitigates co-employment risk. Streamlining vendor interaction within the architecture of a managed services solution and allows the client company to focus on core business and strategy.
Corporations need to minimize risk
A percentage of companies have instituted HR (Human Resource) policies to minimize their co-employment risk. Most high-tech companies that heavily utilize contingent labor have policies and procedures in place governing the practice of using contingent employees. Many companies have simply mandated that a contingent worker cannot work for more than X months consecutively without rolling off contract for X number of months. We’ve also seen mandates where prior employees cannot be contracted back to the company, thus losing valuable expertise to the competition.
These mandates have effectively minimized the risk from an HR/Legal point of view. In practice however, productivity suffers as a result of the turnover of the contingent workforce, and valuable business knowledge is lost when the resource(s) is forced to leave .