Do contingent workers need performance plans?

Contingent workers may benefit from a performance plan in some scenarios.

Contingent workers may benefit from a performance plan in some scenarios.

The trend of using contingent workers has gained steam in recent years and shows no signs of slowing. Although employees working on a contracted assignment may only be around for the short term, their performance can still have an effect on the organization. As a result, HR may want to focus efforts on ensuring that contract workers also maintain high levels of performance.

As an article from Staffing Industry Analysts details, just as the cost of turnover of a full time employee can be high, the cost of turnover of contingent workers can also be costly. As such, instead of letting a contingent worker go because the situation is not proving to be optimal, organizations can take steps to improve the worker's performance. The article's author explains that improving performance could actually work to save on costs at the same time. 

"The positives are pretty easy to identify if it works: retain the investment made, no lost time on sourcing a replacement and you have a dedicated, appreciative and probably even a very loyal contingent worker. Not bad for requiring a little extra effort from your engagement manager, the contingent worker and his or her employer. Everyone wins in this scenario."

With an increasing number of people choosing to be part of the contingent workforce, the need to optimize these types of working situations is growing. According to the Harvard Business Review, the contingent trend is not just due to the economy, but some workers purposely choose to strike out on their own. It is of the best interest of workers and companies alike to come up with a mutually beneficial working arrangement. If a performance improvement plan is part of the solution, HR software can help manage and track the details.