How Can Technology Impact Contingent Workforces in 2023 and Beyond?

workforces in 2023

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Technology will play a significant role in hiring and managing contingent workforces in 2023. For example, platforms such as Upwork, Fiverr, and Freelancer have made it easier for companies to find and hire freelancers, independent contractors, and other non-traditional workers.  

Additionally, there are numerous tools that can help companies screen, onboard, and manage their contingent workforce. This includes tools for tracking hours worked, paying invoices, and communicating with workers.  

Moreover, technology can help companies meet legal and regulatory requirements related to the contingent workforce. For example, it enables them to classify workers correctly and track their contracts, work hours, and agreements.

Role of Technology in Contingent Workforces in 2023

Technology is changing every industry for good, and the gig working economy is no different. As a result, it is now easier than ever for freelancers to find consistent work and for companies to find talented individuals. As a result, contingent workers comprise a significant portion of the global workforce.  

According to a Gartner report, contingent workers represent approximately 15-25% of the global workforce. However, the number is expected to increase to 35-40% by 2025. 

One of the most notable ways technology has impacted the contingent workforce is through the rise of online platforms and marketplaces. Platforms like Upwork, Fiverr, and Freelancer have easily enabled people to find and apply for gig work. These platforms have also made it easier for businesses to find and hire the right people.  

However, working with contingent workers adds greater complexities regarding legal and payout concerns. And if your company hires freelancers on a contract basis, you need to classify them correctly, or it might lead to fines and penalties.  

But again, technology comes to the rescue. By investing in the right tools, you can automate compliance, keep employee information secure, and meet statutory obligations.

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Here are some ways technology can impact contingent workforces in 2023. 

  • Online platforms and marketplaces can connect companies with a global pool of contingent workers, making it easier to find and hire the right workers for specific projects or tasks.
  • Virtual and augmented reality technologies can enable remote collaboration and communication for contingent workers, allowing them to work together as if they were in the same physical location. 
  • Blockchain can help create transparent, secure, and tamper-proof records of work performed by contingent workers, making it easier for companies to track and verify their work.
  • Machine Learning Algorithms can predict workforce needs and match the right worker with the right job based on skills and experience. 
  • Time tracking and project management software allow companies to monitor and manage freelancers’ work in real-time, including hours worked, tasks completed, and progress made. 
  • Automated payroll systems can ensure that contingent workers are paid accurately and on time. 

Adding Contingent Workers to HR Platforms

HRIS and enterprise resource planning platforms were designed for full-time employees. However, with the rise of gig workers in the economy, leading HR tools are considering expanding their systems to include features to manage freelancers. As a result, businesses can manage all their workforce (temporary and permanent) in one place.  

One of the key advantages of managing contingent workforces from your existing HR platform is that it gives you a comprehensive view of your human resources. This makes it easier for you to classify employees and meet compliance requirements. 

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How Can AOR Services Help Manage Contingent Workforces in 2023?

AOR (Agent of Record) services providers make it easier for businesses to manage contingent workforces. Here’s how.

  • Recruitment and Staffing: AOR services can help businesses find, hire and manage a large pool of contingent workers, making it easier to find the right workers for specific projects or tasks. 
  • Compliance and Legal Support: AOR services can help businesses ensure compliance with labor laws and regulations regarding contingent workers, such as properly classifying workers as employees or independent contractors. 
  • Payroll and Benefits Administration: AOR services can handle the administrative tasks associated with paying and managing benefits for contingent workers, such as processing payroll, managing taxes, and providing benefits. 
  • Time and Attendance Management: AOR services can help businesses track and manage the work of contingent workers in real-time, including hours worked, tasks completed, and progress made. 
  • Reporting and Analytics: AOR services can provide businesses with detailed reports and analytics on the performance of contingent workers, helping them identify areas for improvement and make better-informed decisions.
  • Virtual Onboarding and Training: AOR services can provide virtual onboarding and training for new contingent workers, allowing them to be productive quickly.
  • Risk Management: AOR Services can help businesses mitigate risks associated with managing contingent workers, such as worker misclassification, worker injury and other legal issues. 
  • Cloud-based Technology: AOR services can provide businesses with cloud-based technology to remotely manage and communicate with contingent workers. 

Wrapping Up

Technology is helping businesses grow faster than it was possible a few years ago. It also enables companies to manage their contingent workforce, meet compliance requirements, and save costs in human resources. With time-tracking tools, you can track their productivity in real-time and stay abreast of the progress.  

Ready to adopt technology for managing freelancers and independent contractors? Have questions? Shoot in the comments!

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