The big picture: An estimated $2 trillion in independent contractor spend operates without proper governance across many organizations, leaving leaders unable to accurately track their external workforce.

Why it matters: This lack of oversight creates a critical blind spot for staffing firms and HR leaders, impacting compliance, financial accountability, and strategic workforce planning.

Between the lines:

• An estimated $2 trillion in contractor spend runs without adequate governance.
• Many organizations lack clear visibility into their independent contractor headcount.
• This absence of oversight creates substantial governance and compliance risks.

Staffing & HR impact: The lack of governance significantly increases HR compliance risks, particularly concerning worker misclassification and co-employment liabilities. Staffing firms have an opportunity to provide solutions for better external workforce management, potentially impacting gross margins.

The bottom line: Unmanaged contractor spend is a ticking time bomb for corporate governance and HR compliance.