Today, an estimated 60% of the current workforce identifies as the gig economy. And that number is only growing. Why? Because hiring workers on an ad-hoc basis allows companies to access hard-to-find skills as needed without paying extra salaries.
The problem is that investing in the gig economy without strategy results in rogue spend. In fact, worldwide companies spend an estimated $300 billion on contingent labor, 60% of which is unaccounted for in financial planning.
To avoid enormous rogue spend on talent, organizations need visibility and strategic planning into their workforce. With Ceipal Procurewise contingent workforce software, they get just that.
No Visibility Into Market Rates
When employers search for contingent workers, they usually don’t have a clear idea of what the service should cost. Without this data on pay rates, the business has no ammunition to strategically negotiate with contractors. This results in businesses hiring out contractors at pay rates well above the market’s benchmark.
Exposure to Hidden Risks
Limited visibility into labor and services exposes employers to hidden risks. The most common example is worker misclassification as the growth of the gig economy forces employers to distinguish between ICs and W-2 equivalents. But beyond that, lack of visibility into your workforce opens your company to malicious actors, which compromises cybersecurity as well.
Unpredictable Work Quality
Perhaps one of the most obvious challenges in hiring contingent workers is the quality of output. Without data on a contractors’ past performance, businesses cannot make informed decisions about individual contractor’s reliability. Even a recommendation from a co-worker or friend does not provide a guarantee that the project will be completed on time, accurately, and on budget.
Transform with Ceipal Procurewise
Companies who successfully invest in the gig economy equip themselves to overcome these challenges. Giving your team tools to increase visibility into market rates, vet prospective contractors, and evaluate non-FTE candidates is critical to securing high-quality, risk-free labor.
Ceipal Procurewise, Ceipal’s proprietary VMS, provides contingent workforce software for total talent visibility. Fully integrated, Ceipal Procurewise is a flexible, powerful, and user-friendly platform that automates and streamlines the contingent workforce hiring process.
The Ceipal Solution
Visibility Into Market Rates
Successfully negotiate with contractors for more cost-effective talent. With Ceipal Procurewise, you can compare contractor offers side by side to assess which ones are giving you the best deal. Plus, through Ceipal Procurewise’s business intelligence offerings, you can access market rates for different job titles and equip your hiring managers with the data they need to negotiate.
Track worker and supplier performance over time, so your team can strategically decide who you work with. At Ceipal, we leverage artificial intelligence to evaluate candidates’ skill sets and work experience, as well as “soft factors,” like workplace style and motivators. These insights are delivered directly to your hiring team, so you’re always equipped with objective data on who to hire.
Confidently manage all your non-FTE workers. From contract information to worker classification, Ceipal Procurewise securely houses all sensitive documentation. Ceipal Procurewise also provides an auditable system of record for your non-FTE workers, along with a repository of all essential data from your contract. Plus, it even helps with basic worker vetting services, like credit checks, certification checks, insurance validation, and more.