KING OF PRUSSIA, PA, UNITED STATES, October 14, 2026 /EINPresswire.com/ — With no single department taking the lead, enterprise organizations risk losing control of workforce costs, compliance and visibility as responsibilities become increasingly fragmented.

One in four enterprise organisations lack full alignment between HR and Procurement when making contingent workforce decisions, raising concerns that fragmented responsibilities could undermine efforts to build more agile, cost-effective workforces, according to new global research from People2.0.

The study of 700 senior HR and Procurement decision-makers across the US, Canada, UK, Netherlands, Australia and India found that over a quarter (25%) of organisations describe the relationship between the two functions as only somewhat aligned or worse, while over a third (39%) identify internal alignment as a major challenge in managing their contingent workforce.

The findings show that responsibility for managing contingent workers is increasingly spread across different departments, but teams are not always working together effectively. Workforce Procurement, Talent Acquisition and HR now have the greatest influence over contingent workforce decisions, with between 55% and 58% of respondents rating each function as having a high or primary role in decision-making.

However, there is no clear consensus over who should take the lead, with just 17% identifying Workforce Procurement as the primary decision-maker, with the same proportion citing Talent Acquisition, while 16% point to HR. Finance and Legal also play a role, adding further complexity to how contingent workforce programmes are managed.

Matt Fryer, Regional Director EMEA at People2.0, commented on the findings, “Organizations are still working out who in the business is ultimately responsible for managing contingent labor, and it frequently falls in the gap between HR and Procurement. Many organizations simply do not have a centralized view of their contingent workforce, which means they lack the data needed to manage it effectively. A growing trend is a specialized management function that blends procurement, HR, recruitment and compliance into one centralized team.”

Bringing more departments into workforce decisions should encourage collaboration, but different priorities can make that difficult. HR and Talent Acquisition tend to focus on people, skills and workforce experience, while Procurement is more concerned with costs, contracts and supplier relationships. Unless responsibilities are clearly defined, teams can end up working towards different goals.

This can create problems well beyond the departments involved. Inconsistent onboarding, gaps in worker classification and compliance, and limited visibility over workforce costs and performance can all result from a lack of coordination. And as contingent workers make up a larger share of the workforce, these issues become increasingly difficult to manage.

Three-quarters (75%) of respondents say contractors, freelancers and temporary workers account for at least 11% of their workforce, while 43% report that contingent workers represent more than 20%.

Christie Heintz, Senior Program Director, Shared Services at People2.0, explained why managing an increasingly complex contingent workforce requires clearer ownership, “Managing a contingent workforce program used to look a lot simpler. A hiring manager knew who they wanted, picked up the phone, and had someone starting Monday. Today, organizations have had to get serious about how these programs actually run. Procurement manages cost and contracts, HR manages classification and onboarding, legal manages risk and technology platforms manage the data. The most successful enterprise programs have a dedicated internal team that owns the contingent labour function.”

The research also reveals differences in workforce governance across international markets. Organisations in India report the highest levels of collaboration between HR, Procurement and Talent Acquisition, alongside the strongest alignment between HR and Procurement among the six countries surveyed. While approaches vary between countries, the challenge for enterprises is much the same: making sure everyone involved in workforce decisions is working towards the same goals.

“As reliance on contingent talent grows, closer coordination between HR, Procurement and Talent Acquisition will be critical to avoiding fragmented processes, improving visibility and ensuring workforce strategies deliver the flexibility businesses need,” concluded Heintz.
The State of Contingent Workforce Management Report, Enterprise Edition is available to download via the People 2.0 website (https://www.people20.com/2026-state-of-contingent-workforce-management-report/).

ENDS

About the research
This research (https://www.people20.com/2026-state-of-contingent-workforce-management-report/) comprised a quantitative online survey of 700 senior business decision-makers working within enterprise organisations (500+ employees and annual revenues of $100M+) across six key markets: the USA, Canada, the UK, the Netherlands, Australia and India. The study focused exclusively on senior business decision-makers in HR and Procurement professionals, as these functions played a central role in contingent workforce strategy and management. Respondents were also screened using additional qualification questions to ensure they had direct responsibility for, or influence over, contingent workforce decisions.

The sample was weighted towards North America (USA: 200 respondents; Canada: 100 respondents), with 100 respondents surveyed in each of the remaining markets, providing a total sample of 700. At a 95% confidence level, this delivered an overall margin of error of approximately ±3.7%, making the findings robust for identifying global market trends and comparing the perspectives of HR and Procurement professionals. The research explored the challenges enterprise organisations faced in managing contingent workforces, identified which functions held the greatest influence over workforce decisions, and examined the key factors shaping contingent workforce strategies across large organisations. The analysis focused primarily on the overall findings, with comparative insights between HR and Procurement respondents where statistically appropriate

Media contacts:
Anthony Monks
ITPR
people2.0@itpr.co.uk
+44(0) 207 183 8200
+44(0) 7842 386 809

About People 2.0: https://www.people20.com/
People2.0 is a global provider of workforce compliance and payroll services for enterprises and talent suppliers, including staffing firms, search and recruiting firms, mass talent entities, and professional services firms. People2.0 helps these businesses navigate employment, labour, and tax regulations across the world.

Specializing in worker classification and compliance, People2.0’s employer of record (EOR) and agent of record (AOR) services streamline talent placement operations, correctly classify workers, and facilitate international placements. Whether hiring locally or globally, People2.0 empowers enterprises and talent suppliers of all sizes to engage the contingent workforce, keeping businesses compliant with local and international regulations. Using its global network of in-country experts, People2.0 enables its partners to hire any worker, anywhere, in any arrangement.

These services help businesses in 130+ countries grow faster, operate more profitably, and expand globally.

Anthony Monks
INFORMATION TECHNOLOGY P.R.
people2.0@itpr.co.uk

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