While the structure of the workforce has changed, management strategies haven’t. According to Deloitte, contingent workers now make up 30–50% of the workforce. Deloitte also notes, contingent workers play a crucial role in delivery and should be managed with the same rigor as full-time employees.
Yet in many organizations, these workers are still handled separately from full-time staff, often through disconnected systems and teams. This split is becoming a liability. After all, a fragmented view of talent increases compliance risk while making it harder to adapt to change. Especially when project timelines tighten or hiring needs quickly evolve.
Total talent management (TTM) helps organizations overcome these challenges by providing a single approach and source of truth for planning and managing all talent types. With the right TTM strategy in place, teams can improve everything from workforce visibility and cost control to hiring speed and flexibility.
What Is Total Talent Management?
Total talent management (TTM) is a workforce strategy that brings all types of workers into a single system to handle the entire employee lifecycle. A holistic TTM strategy should cover a long list of tasks, including how people are sourced, classified, onboarded, paid, evaluated, and offboarded.
Also called total workforce management or total talent acquisition, the goal of TTM is to replace the divide between how full-time and contingent workers are managed. TTM also aligns standards and responsibilities across key teams like HR, procurement, legal, and finance. When teams are aligned, they’re less likely to work at cross purposes or create gaps in areas like compliance or workforce planning.
Think of it this way: most organizations traditionally treat workforce data like puzzle pieces stored in separate filing cabinets. TTM brings all those pieces together, providing a clear picture of who is working where and what teams are capable of delivering.
Why Should You Start Caring About Total Talent Management?
Did you know over half of organizations say they have little or no visibility over their contingent workforce, according to an HR Today report? The same report notes that only a small fraction of companies have a proactive strategy to manage their contingent talent.
At the same time, the pressure to find talent faster, use it more effectively, and meet rising compliance standards continues to grow. Organizations should care about total talent management because it acts as a skeleton key, overcoming barriers and unlocking results in multiple areas.
Tackling Talent Shortages and Skills Gaps
Thousands of HR professionals are struggling to fill roles due to talent and skills shortages, according to a recent SHRM survey. Contingent workers are essential to bridging these gaps, but many organizations still manage them through separate systems and teams. As a result, onboarding and day-to-day work are poorly managed. And when the work ends, there’s usually no structured way to assess performance or re-engage that person later.
Total talent management resolves this by connecting all worker types through a single framework. Contractors move through the same core systems as employees and enjoy a more structured, predictable, and often more enjoyable experience. Their records stay visible, and hiring managers can see who’s contributed before, how they were classified, and whether they’re available again.
Businesses can build on past relationships and retain access to people they already trust, rather than restarting the hiring process each time a need arises.
Building Business Agility and Resilience
Most hiring systems are built around permanent roles and long lead times. But business needs don’t always follow that rhythm. A new client, an urgent launch, or a shift in direction can create immediate demand for skills that weren’t part of the original plan. When companies rely only on traditional processes, they either move too slowly or commit to hires they can’t justify long term.
Total talent management helps resolve this mismatch by providing a full view of available options, enabling teams to evaluate whether a role requires a new hire, a returning contractor, or a short-term engagement. They can assess cost in context, check availability across channels, and choose a duration that fits the scope of work.
Greater visibility also helps organizations stay operational when conditions change. Instead of pausing work or stretching staff beyond their capacity, companies can scale support quickly and precisely according to their needs.
Easing Compliance Pressures
Compliance has become more complex and less forgiving. A single misclassification can trigger fines or legal disputes that damage finances and reputation. In the U.S., for instance, the Department of Labor has renewed its focus on worker classification. A 2025 bulletin instructed investigators to return to more worker-protective standards and stricter scrutiny of misclassification practices across industries.
In Europe, new legislation makes it easier for authorities to classify certain contractors as employees. Under the EU’s Platform Work Directive, platform-based workers are now assumed to be employees unless the company can prove they are genuinely self-employed.
Total talent management supports compliance by making every engagement visible to the teams that need to review it. Legal and HR aren’t left to chase down decisions after contracts are signed. They can review worker types in context, apply the right classification standards, and address risks before work begins. That coordination reduces exposure without slowing the process down.
Creating Lean Hiring, Stronger Teams
Total talent management helps finance leaders gain tighter control over labor spend. Known contractors and freelancers can be brought back without going through a full hiring cycle, which reduces spend on recruiters, job ads, and onboarding. Short-term roles stay short-term, so payroll doesn’t swell with headcount the business can’t sustain.
TTM also supports better employee engagement. When your workforce is balanced and well-managed, no one feels overstretched. Teams are supported during busy seasons, and projects move forward without burning out your employees. Plus, a happier environment makes it easier to retain top talent.
Common Challenges to Adopting Total Talent Management
Many organizations see the logic behind total talent management. But recognition doesn’t equal readiness. Without the right conditions, even well-supported plans lose momentum. Common roadblocks include:
- Departmental silos: HR and procurement manage different worker types, with different systems, incentives, and processes. No one team takes full ownership of the workforce, so TTM struggles to gain traction.
- Incompatible technology: Legacy systems weren’t built to connect employee and non-employee data. Applicant tracking platforms and vendor systems often run in parallel, which makes it harder to see the full picture or plan at scale.
- Resistance to change: New frameworks require new behaviors. Leaders may hesitate to shift control. Managers may resist updated workflows. Teams may struggle to track impact without headcount as the primary metric.
- Lack of visibility: Many organizations don’t know how many contingent workers they have or how those workers perform. Without that data, it’s hard to make a case for change.
These challenges are real but not insurmountable. With the right structure and a phased approach, organizations can shift from siloed systems to a unified workforce strategy that drives business growth.
Best Practices for Implementing Total Talent Management
Total talent management doesn’t begin with a full overhaul. From working closely with many companies, we’ve seen that the most effective programs start small, build momentum, and scale from there. Here are key steps to doing just that:
1. Get Executive Sponsorship
TTM requires leadership backing. Without it, the program loses momentum. Present it as a key business strategy tied to measurable goals like cost savings, faster hiring, and legal protection.
2. Establish Cross-Functional Governance
Eliminate silos by giving HR, procurement, finance, legal, and other important stakeholders a seat at the table. Establish a governance structure defining clear roles and responsibilities.
3. Audit Your Current Workforce
Document who’s doing the work, how they were engaged, and how they’re classified. Many organizations uncover gaps in oversight, especially with contractors.
4. Invest in Integrated Technology
Disconnected systems are one of the biggest barriers to TTM. Look for platforms or partners that connect your employee and non-employee talent data.
5. Standardize Processes Across Worker Types
Use clear, consistent workflows for onboarding, renewals, and other processes, regardless of contract type. When processes are aligned, managers work more efficiently and workers have a clearer, more unified experience.
6. Build Inclusive Workforce Policies
Treat contingent workers as part of the team. Extend relevant training, communication, and recognition to everyone contributing to outcomes. Inclusivity strengthens culture and morale, improving engagement and productivity.
7. Pilot, Measure, and Scale
You don’t start everything at once. Start with a single business unit. Track impact and use that data to inform a broader rollout.
8. Partner with an EOR/AOR Provider
A qualified employer of record (EOR) or agent of record (AOR) provider can manage classification, contracts, and compliance. This reduces strain on internal teams and ensures engagements meet local labor laws from day one.
How People2.0 Supports Total Talent Management Strategies
People2.0 helps businesses put total talent management into practice. As a global EOR and AOR service provider, we give businesses the foundation to manage contingent workers with the same clarity as full-time staff. We also take on the legal and administrative complexity so internal teams can stay focused on planning and performance.
With People2.0, you can:
- Engage talent in over 60 countries without setting up local entities
- Ensure compliant classification, onboarding, payroll, and benefits
- Integrate seamlessly with your existing ATS, VMS, or HCM tools
- Centralize reporting and governance for better oversight
Embracing a Total Talent Future
As the lines between full-time and contingent workers continue to blur, companies that embrace a unified talent strategy will be the ones that succeed and attract the best people, no matter where they work.
Ready to put total talent management into practice? Let’s talk about your workforce goals and how People2.0 can help solve your unique challenges.
