The world of work continues to evolve – quicker than it ever has before – and competitive organizations are increasingly investing in the power of a contingent workforce to become more agile in these disruptive times. As employers everywhere are using more forms of contingent workers, it’s likely that your organization is also getting on board with the same transformation.

According to McKinsey, up to 30 per cent of an organization's workforce in the U.S. is made up of contingent workers, with employers having unprecedented access to a talent pool of 42 million of them. And while the rise of a flexible talent provides many benefits, it also leaves employers grappling with the hurdles of managing the many complexities that come with these types of workers. For answers, organizations committed to a more strategic approach to contingent talent management are turning to a Managed Services Program or Managed Services Provider (MSP) as an effective resource.

If you’re considering investing in an Managed Services Provider or are interested in learning how an MSP can help optimize contingent workers to drive real business value across your organization, the following insights will help you make an informed decision.

When onboarding an independent contractor in Canada, organizations must classify aspects of the contingent worker relationship to ensure compliance with the correct tax and employment laws. Misclassification of workers happens in Canada when Canada Revenue Agency (CRA) and/or regulatory bodies deem one or more of an organization’s contract workers as actual employees. Independent Contractor classification will also affect the cost of employing specific contractor types.