The modern workforce is more complex than ever. Alongside permanent employees sits a growing contingent workforce—contractors, freelancers, consultants, and gig workers—who play critical roles in delivering business outcomes. Yet, despite their importance, this segment of the workforce is often invisible.

Most companies cannot confidently answer basic questions about their contingent workforce: How many contractors do we have? What is their total cost? What risks do they present? And how should we integrate them into our broader workforce strategy?

This lack of visibility creates risk and inefficiency. Contractors may be hired through multiple channels with inconsistent processes, rates, and compliance checks. Leaders may underestimate their true cost or miss opportunities to leverage contingent workers more strategically. In some cases, poor oversight even leads to reputational or regulatory exposure.

But there is a way forward. By adopting a structured approach using a maturity model as a guide—

organisations can progress from fragmented, ad-hoc contractor use to a managed, strategic program that balances flexibility with control.

The Contingent Workforce Maturity Model 

A maturity model offers a useful lens for organisations to understand where they are today and where they need to go. At a high level, the stages typically look like t

his:

1. Ad Hoc – Contractors are engaged individually by managers with little oversight. Data is scattered, visibility is minimal, and risks are unmanaged.
2. Emerging – HR or procurement begins to centralise some processes, such as approvals or preferred suppliers. Partial visibility is achieved, but management is still inconsistent.
3. Defined – The organisation develops policies, standard contracts, and tracking mechanisms. Leaders start to see the scale, cost, and risk profile of contingent labour.
4. Managed – A central program—either insourced through HR/talent teams or outsourced to a Managed Service Provider (MSP)—oversees contingent labour. Processes are consistent, compliance is managed, and data informs decisions.
5. Strategic – The contingent workforce is fully integrated into workforce planning. Leaders can model different workforce scenarios, balance permanent and contingent talent, and align resources with business priorities.

Insourcing vs. Outsourcing

At the “managed” stage, organisations face a key decision: should they run the program themselves or outsource it to a specialist?

• Insourcing means HR or talent teams directly manage the contingent workforce program. This allows closer alignment with internal strategy and culture but requires dedicated capability, technology, and ongoing investment.
• Outsourcing to an MSP brings specialist expertise, established processes, and technology platforms. It can accelerate maturity and deliver scale efficiencies but requires strong governance to ensure the partner aligns with business needs.

Both models can be effective if designed thoughtfully. The right choice depends on the size of the contingent workforce, the complexity of the environment, and the organisation’s appetite for building internal capability.

The Benefits of Maturity

Regardless of the model chosen, moving up the maturity curve delivers significant benefits:

• Visibility and control over headcount, cost, and compliance.
• Reduced risk through consistent contracts, vetting, and governance.
• Cost efficiency by managing rates, tenure, and supplier performance.
• Strategic agility by integrating contingent labour into workforce planning, ensuring the right mix of talent to meet business needs.

The Way Forward

The contingent workforce will only continue to grow as organisations seek agility and specialised skills. Treating this segment as an afterthought is no longer viable. @thehumancollaborative works with companies across all sectors, helping them define their contingent workforce strategy, roadmap, business case and designing the deployment of all of these.  Reach out for help!