In today’s competitive business climate, organizations need an agile workforce that can execute strategies and achieve corporate goals quickly and efficiently. Yet, employers must also be responsible for managing their workers’ wages, bonuses, and deductions as well as provide support during the length of a worker’s assignment(s).

It’s a complex, time consuming process, and staying on top of the frequent changes to legislation can be problematic. Any oversights will result in non-compliance, which could lead to serious fines and negative employer branding.

To stay compliant and competitive, growing organizations will typically shift from a ‘direct contractor payrolling model’ to a third-party payrolling model, either built around the selection of a dedicated supplier or through informal referrals to a variety of vendors.

But which model is the best option for bringing qualified talent quickly and cost effectively into your contingent workforce? Depending on your organization’s acquisition needs, below is a list of payrolling models to consider:

They go by many different titles: contingent workers, gig employees, freelancers, consultants and contractors, but regardless of naming, they all serve the same purpose in providing organizations with flexible, skilled staffing solutions to help employers quickly respond to market changes and demands.

In an effort to save on cost, better manage talent and regain control over their recruits, organizations have become increasingly more comfortable taking on some or all of the contingent worker engagement process for simple or frequent openings within their organizations.

The practice of engaging contingent workers directly is known as direct sourcing, and while it's true that direct sourcing can save organizations money, the opposite can also be true if the company doesn’t have the proper resources in place or a formal program to manage the process.