More than ever companies are trending toward maximizing the value of a contingent workforce—the engagement of non-permanent workers. Across business units, the benefits of leveraging freelance workers are palpable on both sides of the equation: Cost containment and the ability to enhance productivity with the flow of business for the corporation, flexibility and freedom of choice in the hands of the freelancer. As the contingent workforce continues to grow in size and complexity, organizations are increasingly challenged with managing such resources, driving savings and improving efficiencies, putting a structure around data. In light of these challenges, companies are turning toward the use of a Managed Service Provider (MSP) to oversee and optimize the utilization of freelancers.
Navigating Worker Misclassification
The meeting and event industry has shared in the global uptick in contingent workforce utilization while leveraging MSPs to corral these channels of flexible labor. As with any other niche, meetings agencies and internal corporate event teams are reaping the rewards of the freelance economy, but this is not without risk. Stakeholders are free to select meetings specialists by specific skill set without adding fully burdened employees to headcount. Using an industry-specific external model to manage this process lends unquantifiable expertise, but just as importantly helps navigate the potentially hazardous terrain of worker misclassification.
Experienced, industry-specific MSPs function to provide clients with the information and arms’ length necessary to properly leverage contingent labor. Specifically in the realm of corporate events, freelancers too often run the risk of resembling full-time employees. Not only is it necessary for an outsourced model to bring a track record of industry-specific knowledge, but they must also be able to advise and consult corporations on the game changers of risk: