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Negotiation strategies that win over contingent workers

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Negotiation strategies that win over contingent workers

The contingent workforce continues to challenge talent markets on both sides of the border, yet the many advantages that come with contingent workers makes temporary talent critical in order for an organization to adapt and succeed in today's ever-changing marketplace.

In Canada, contingent workers currently comprise 30% of the workforce, expecting to grow to over 35% by 2025. In the U.S., the gig economy is estimated to be about 34% of the country's workforce, and is expected to rise to 43% by 2020. As these numbers continue to grow, 21st century organizations will need new strategies to attract non-traditional workers -- including negotiating for their work.

Negotiating pay rates with your organization’s contracted resources can be one of the most daunting aspects of your hiring program, but it’s also one of the most important.

When beginning negotiation discussions, your organization needs to enter the conversation prepared with knowledge and best practices that ensure a fair, market-based contract rate that’s mutually beneficial to both parties.

Below is an easy-to-follow, actionable plan that will align your directly sourced workforce with your cost saving objectives.

1. Leverage your hiring data

Use your hiring data to establish benchmarks on what you pay for specific roles. If you already have a rate card, even better. Use it and compare it against your hiring results, paying particular attention to the use of “niche” or “other” worker types. If you are using these types of workers, dig in to find out why. This usually means that someone is working around rate compliance, you need to add a new category or you should review your existing rate card to current market conditions.

Approaching the bargaining table prepared with a framework for dialogue will improve the chances of achieving mutually beneficial relationships with your contingent workforce. Harvard Law School’s Program on Negotiation recently released a free Negotiation Preparation Worksheet to help you create that framework. You can download your copy here.

Topics: Job Seeker

John Barnes
John Barnes
Account Executive

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