Temporary Labor Provider Agreements

As any human resources professional or hiring manager knows, contingent labor is no longer a temporary fix to a temporary problem; it’s a permanent mechanism that provides flexibility in how talent is deployed.


For many in corporate staffing, having to "resort" to utilizing contingent labor is an unpleasant activity and is often relegated to the lowest-cost outsourced service provider the organization can find, or worse— the outsourced service provider used is also a "friend" to one of your hiring managers, or a friend of a friend, or is related to your biggest client's CEO, or ... you get the picture.


With this paradigm becoming the norm, managing agreements with your service providers has become critical.  It's an ethical issue, it's a cost issue.  If you are being pressured to be more fiscally responsible than ever before, agreements can no longer be on a handshake or long-standing verbal agreement.


As the employer, you should know exactly what each temporary associate is paid, and exactly what percentage is added to that pay rate to generate the "bill rate."  You should also have protections built into your agreements that protect the company, should an incident with a temporary associate occur.


We have found, in every instance of being asked to take on the endeavor of evaluating temporary labor environments, companies were being charged exorbitant "mark-up" rates that far exceeded industry standards.  Agreements, when they existed and were current, left the companies open to huge liabilities.


It shouldn’t require much to convince you that given the increasing role contingent labor plays in the organization, it's essential for organizations to build a contingent labor management framework in order to drive strategic talent management. 


ITM will assess your contingent labor environment, agreements, and quality of staff being provided, and put processes in place to optimize the capability and capacity of the temporary labor force you receive.


Let us help you accomplish your organization’s objectives at the lowest possible cost.