Why Legacy Systems Can't Keep Up with the Modern Contingent Workforce and What to Do Instead
- Grace Underwood
- May 29
- 2 min read
Updated: Jun 2
Organizations are increasingly leaning on contingent labor to drive agility, innovation, and scalability. While the talent strategy has advances, many companies still rely on legacy systems that were never designed to manage a flexible, global, and compliance-sensitive workforce.
Using VMS platforms, spreadsheets, or manual onboarding tools, legacy infrastructure is creating more risk than reward especially when it comes to Employer of Record (EOR) services, worker classification, and contingent workforce management.
Here's why your old systems are falling short and how modern SaaS platforms purpose-built for the contingent workforce ecosystem can help mitigate risk and drive the growth you are looking for.
TOP 3 Ways to Improve Legacy System Utilization in Contingent Workforce Management
Legacy Systems Create Data Silos That Hinder Workforce Visibility
One of the most common issues with legacy workforce systems is data fragmentation. HR, procurement, legal, and finance all need access to worker information, yet these systems rarely speak the same language therefore leading to siloed data, duplicated entries, and a lack of real-time insight.
In contingent workforce management, this lack of integration leads to gaps in compliance and limited visibility into workforce spend...ultimately resulting in pretty inefficient processes.
Legacy Workflows Aren't Built for the Flexibility of the Modern Contingent Workforce
The days of "one-size-fits-all" workforce programs are over. Companies today require agile, configurable solutions that can adapt to shifting business priorities, new markets, and diverse talent models including freelance, gig, temp, and contract workers.
Legacy systems are more often than not rigid and require IT intervention to make changes and simply can't scale at the speed modern business demands.
User Experience Directly Impacts Worker Engagement and Retention
Clunky interfaces, manual onboarding, and confusing portals are all too common in legacy systems. These outdates experiences don't just frustrate administrators, they discourage contingent workers from staying engaged or completing necessary tasks accurately.
Security and Compliance Gaps Leave You Exposed
Legacy systems lag behind in data privacy and security protocols, which is a major red flag when handling sensitive worker information. In the era of GDPR, CCPA, and increasing global scrutiny, maintaining compliance is a non-negotiable.
The rise of the contingent workforce isn't a trend it's a transformation. And to succeed, companies need to replace outdated legacy systems with platforms designed specifically for today's dynamic workforce strategies.
Our latest whitepaper, "The New Contingent Workforce Ecosystem," explores all of the opportunities organizations can explore to better leverage the management of their contingent workforce for data-driven compliance and SaaS-based integrations to modernize workforce management and reduce misclassification risks in the process.
For opportunities and proven solutions top companies are leveraging today, and discover how to future-proof your contingent workforce strategy.
