Contingent Workforce, Clarified: Lessons from the Jobtopia Podcast
By Mickey Pelletier
What do you get when you combine rising headcount, multiple staffing partners, and inconsistent processes across dozens of business units?
A recipe for chaos—and the origin story of contingent workforce management as we know it.
I recently joined Tony on the Jobtopia podcast to talk about what contingent workforce management actually is, why it’s so misunderstood, and where organizations (and the industry itself) are heading next. Here’s the quick recap—with a few added insights I didn’t get to say on air.
What Is Contingent Workforce Management, Really?
At its core, contingent workforce management is about overseeing the full lifecycle of non-employee talent: sourcing, engaging, onboarding, paying, and offboarding workers who aren’t on your company’s direct payroll.
In the early days, companies leaned on staffing agencies to bring in temporary workers. But as those lists of suppliers grew into the double digits, managing vendors, compliance, and cost quickly became unmanageable. That’s where the concept of a Managed Service Provider (MSP) entered the picture—bringing process, structure, and accountability to the table.
Think of the MSP as the operational engine behind your contingent workforce, and the Vendor Management System (VMS) as the technology that keeps it all running. One handles the service, the other manages the data. Together, they help companies navigate an increasingly complex and critical segment of their workforce.
The Struggle Is Real (and Systemic)
Despite decades of evolution, the contingent workforce space is still largely misunderstood—even inside the companies that rely on it.
Managers may only engage with the VMS once or twice a year. Suppliers may miss opportunities because the communication chain has changed. And organizations may struggle to see contingent labor as anything more than a tactical problem to solve, rather than a strategic asset to leverage.
From my experience, the biggest issues tend to fall into two categories:
- Lack of visibility and control: Companies don’t know who’s on site, what they’re being paid, or even where to find that information.
- Fragmented systems and processes: Spreadsheets, outdated contracts, varying rate cards—it’s all over the place.
This is what I call “Gen 1” pain. It’s where many companies start—and where a lot of value can be unlocked quickly through centralization and standardization.
Moving Up the Maturity Curve
As organizations evolve, so do their needs. Gen 2 and beyond isn’t just about temps—it’s about integrating independent contractors, SOW engagements, freelance platforms, and even direct sourcing strategies.
The challenges shift from tactical to strategic:
- Are we using the right mix of talent channels?
- Can we predict and meet business demand?
- How can we make workforce decisions faster, smarter, and more cost-effectively?
Spoiler alert: AI is going to play a big role in all of this.
AI: Buzzword or Breakthrough?
AI can absolutely transform the way we manage contingent labor—but only if it’s solving real problems.
Here’s where I see the biggest value:
- On the front-end: Screening, scheduling, and early-stage candidate engagement are already being automated. The key is making the experience feel human and purposeful, not robotic.
- On the back-end: AI agents can streamline requisition creation, pull historical data to recommend the right worker or supplier, and even suggest alternative fulfillment models—like nearshoring or fractional freelancers—based on cost or speed needs.
Ultimately, AI should augment, not replace. When used right, it helps managers make better decisions, faster—and makes the entire process more efficient and strategic.
Final Thoughts
Whether you’re just starting to realize your contingent workforce is out of control or you’re looking to take your program to the next level, the key is this: it’s not just about managing people, vendors, or costs. It’s about building a smarter, more resilient way to get work done.
If your organization is ready to rethink its approach—or just needs help making sense of it all—I’d love to help.
Let’s make contingent workforce management something people do understand.
Check out Tony’s blog to see what he took away from our conversation. And thanks again to Tony and the team over at Timpl!
