With 2017 right around the corner, it’s time to look to the future of healthcare contingent workforce management. In 2016, we observed a significant increase in the use of contingent labor, with 83% of hospitals reporting they were now using contingent labor. This marked an increase of 41% from 2015. With this increase, new workforce solutions have emerged to further enhance contingent workforce management. Do you know which trends will shape how you manage contingent labor in 2017?
Contingent Workforce Trends to Watch for in 2017
In 2016, health systems across the nation began to investigate how to ensure their contingent workforce programs were proactive, cost effective, and capable of achieving strategic business goals. In 2017, we predict the following trends will continue to reshape these programs:
- Obtaining qualified candidates will become more challenging. In 2017, the war for talent will continue to challenge health systems. Nursing demand is already outpacing available supply 2 to 1. It will continue to challenge health systems as more nurses retire, leaving over 1 million nursing positions vacant. Contingent workforce programs will seek proactive solutions to obtaining qualified candidates. This is expected to include diversifying supplier pools, partnerships with vendor neutral MSP’s, and new talent acquisition strategies.
- Partnerships with a vendor neutral MSP. As contingent workforce programs grow, health systems will require a more consultative approach to workforce solutions. We predict many will partner with a vendor neutral MSP to obtain more intelligent contingent workforce solutions. In partnership with a vendor neutral MSP, health systems will gain a partner who can proactively mitigate risk, improve compliance, and guide health systems through changing healthcare regulations.
- 1099 business validation services. New FLSA guidelines will continue to challenge health systems, particularly in their contingent workforce programs. With 35 states in partnership with the Department of Labor (DOL), and the Internal Revenue Service (IRS,) the issue of non- employee misclassification will loom large. To mitigate the risk of fines, penalties, and lawsuits, health systems will turn to experts to gain guidance on non-employee classifications. Obtaining business validation services will be an important component to reshaping contingent workforce and SOW programs, becoming a more integral part of healthcare compliance.
- Strategic analytics. In order to make more strategic decisions, health systems will integrate more strategic analytics into their decision making process. Health system leaders will seek to integrate more market intelligence and nuanced reporting into the process to predict staffing needs, compete for qualified candidates, and more. Technology will feature more data and vendors will offer more reporting solutions to shape contingent program strategies.
As 2017 approaches, health systems have already begun to investigate how to improve their contingent workforce programs. These trends will significantly impact a health system’s ability to mitigate risk, achieve cost savings, and improve results of their growing contingent workforce programs. To find out how these trends will impact your health system’s contingent workforce program, contact the leading vendor neutral MSP, RightSourcing, and take a free workforce analysis.