HR Data Management in a Non-Employee World: 4 Things to Know
The digitalization of the workforce and the rise of the gig economy has dramatically changed the structure of many organizations, which in turn has posed new challenges for HR teams. In addition to traditional full-time employees (FTEs), many HR teams and their peers in IT and cybersecurity are now faced with growing numbers of contractors, vendors, partners, affiliates, and freelancers – commonly grouped together as “non-employees.” While there are many benefits compelling organizations to utilize non-employees, this population of outsiders creates a new set of business challenges, not the least of which is that they inherently increase an organization’s exposure to greater risks than typical full-time employees.
For many organizations, the crux of the problem arises from not having sufficient resources and systems in place responsible for the timely and effective collection, processing, and operationalization of non-employee information. This exercise is particularly difficult to perform for non-employees because, unlike FTEs, non-employee data must be collected in a collaborative fashion oftentimes from disparate sources inside and outside of the organization. However, the systems used to perform this exercise for FTEs are not designed for the complexity and flexibility of non-employee populations and are therefore unable to support their unique needs. As a result, organizations lack an authoritative source of non-employee data that can be used to make well-informed business decisions and ultimately mitigate the risk associated with this utilizing these resources.