By Maria Rosploch, Global Vice President, Consulting, KellyOCG
Workforce dynamics change fast. Remote work, gig jobs, evolving worker expectations, and new technology are reshaping how businesses find and manage external talent. Organizations now rely on contractors, freelancers, and temporary staff for specialized skills and flexibility.
Managing this external workforce is increasingly complex, with growing challenges around cost control, compliance with labor laws, and adapting to shifting business needs. Success requires thoughtful planning — and not just hiring external talent but using smart tools and continually improving your approach.
A managed services provider (MSP) solution provides the expertise, technology, and objectivity to help you face these and other demands of today’s external workforce — but all MSPs are not the same. Use this checklist to assess your MSP needs and identify the key steps for effective external workforce management, empowering your organization to operate efficiently, maintain compliance, and adapt smoothly to future changes.
1. Build and Present a Compelling Business Case
Leverage data and market insights to demonstrate how external workforce strategies directly align with enterprise goals (e.g., agility in project delivery, rapid access to niche skills, and cost control). Enlist executive sponsors early to champion your initiative.
2. Set Transparent Objectives and Metrics
To unlock the value of your external workforce, align clear, transparent objectives with your organization’s strategic priorities. Consider why you are leveraging contingent labor or external partners. For example, is it to access specialized skills, market agility, or cost containment? This clarity ensures every stakeholder understands the value proposition and guides decision-making. Next, measure performance by establishing key performance indicators (KPIs) across critical areas such as productivity, quality, compliance, and cost-effectiveness. Make these metrics visible across teams, sharing results regularly with both internal leadership and external partners. Adjust KPIs as business needs evolve, ensuring your external workforce is always aligned with your organization’s changing goals and ready to deliver sustained value.
3. Strengthen Talent Channel Collaboration
Widen your talent partnerships and hold them accountable for quality, cost, and speed. Work with your partners to define the right qualifications, leverage the entire external workforce, including independent contractors, and established direct sourcing channels to maximize effectiveness and efficiency. Implement business reviews and shared service levels to drive accountability and innovation.
4. Actively Manage Compliance and Risk
Establish clear, centralized governance for statement of work (SOW) contracts, non-employee screenings, and worker classification. Apply technology to regularly audit for legal, regulatory, and contractual compliance, especially regarding local labor laws, data privacy, and vendor agreements. Your MSP should provide governance and controls to mitigate these risks.
5. Invest in Strategic Partnerships
Treat your staffing agencies as allies. Implement robust communication tools and protocols to ensure seamless information flow between internal teams, your MSP (if applicable), vendors, and external staff. Provide the details and expectations they need to support your goals. Leverage mutually accessible data to proactively manage performance and remove unnecessary barriers that prevent them from finding the best talent quickly. Regularly solicit and act on feedback from your partnership, jointly investing in training and driving improvements.
6. Operationalize Performance and Predictive Analytics
Implement real-time dashboards integrating data from your MSP (if applicable), vendor management system, financial system, HR systems, and external market data to provide a comprehensive view. Leverage AI tools and data insights for predictive analytics for market intelligence, demand forecasting, and workforce planning to make informed strategic decisions. This should be embedded in your everyday decision-making and governance structure.
7. Embrace a Holistic, Talent Ecosystem Approach
Bridge gaps between non-employee and full-time talent. Look holistically at the work needed and consider all types of talent (internal mobility, contingent workers, independent contractors, freelancers, SOW engagements, alumni or retirees, and full-time hires) to determine the optimal way to get work done based on the specialty talent required. Leverage technology to gain a unified view across all talent pools. Your MSP should have expertise in both contingent and full-time talent acquisition, along with recommendations on milestone management and effective SOWs. They should facilitate this strategic shift for you and provide external talent and market data on the right approach.
8. Embed Dynamic Governance & Co-Ownership
A thoughtful governance strategy should provide active partnership management, driving mutual value. Appoint governance panels involving business leaders, HR, procurement, legal, and MSP partners. Governance should provide guardrails for critical areas such as vendor selection, talent quality, data security, performance metrics, and scalability while also fostering innovation and agility. Define success together and provide open dialogue and joint problem solving to ensure all parties remain invested, empowered, and resilient with the mutual goal of organizational success.
Stagnant workforce management is no longer an option in today’s competitive landscape. By boldly transforming how your organization harnesses the full spectrum of external talent, challenges industry norms, and cultivates strategic partnerships, you will unlock exponential value.
Lead decisively: transform your workforce strategy into an engine of growth, adaptability, and innovation. Challenge conventional practices, demand excellence from every vendor partner, and relentlessly pursue improvements and innovation. Those who harness the true power of their external workforce will outpace their rivals, redefine success, and seize opportunities others never see. Now is the time to lead the charge and elevate your workforce management to a level that inspires and disrupts.