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As companys businesses navigate a dynamic business landscape in the United States, challenges related to labor practices become increasingly complex. In this context, third-party management emerges as a strategic alternative to overcome obstacles and mitigate risks.  

This article examines specific challenges faced by organizations and explores how third-party management can be an effective response. 

Worker Classification Complexities

Properly classifying workers, whether as employees or independent contractors, is a intricate task subject to significant legal implications. The challenge lies in interpreting constantly evolving labor laws. Third-party management offers a valuable solution by allowing specialized partners to handle this complexity, reducing legal risks and providing clarity in labor relations. The key is to act preventively, ensuring that documentation is acquired from the service provider and accurate information is obtained at the beginning of the contract. 

Responsibility for Workplace Accidents

Engaging suppliers for services involving heavy labor can enhance the service provided to the end customer, ensuring specialized expertise. It also promotes cost reduction and internal bureaucracy since the organization no longer needs to create an internal department or hire people solely for services outside its core business. Controls must be in place, however, to ensure the safety of these hired third-party workers. This includes ensuring they use all necessary personal protective equipment and that  safety programs include the training and skills required for the job. Effective HSE management that controls these risks based on documentation can be achieved. By establishing detailed contracts and collaborative partnerships with third-party suppliers, companies can align expectations, clearly define responsibilities, and thus reduce risks associated with litigation and unexpected financial impacts. 

Third-party management: compliance with Labor Laws and Data Protection

Maintaining compliance with labor laws is a continuous challenge given the dynamic regulatory environment. Third-party management or supplier risk management emerges as a strategic solution by allowing organizations to rely on experts to ensure compliance. These partners dedicate themselves to staying updated, thereby reducing exposure to penalties and legal proceedings. Additionally, with the growing concern for data protection and privacy, companies face the challenge of implementing rigorous measures. Specialized partners use technologies compliant with all data protection laws thereby reducing security risks and helping organizations avoid breaches, preserve customer trust and maintain a strong reputation. 

When considering growth, it’s essential for an organization to expand in a structured manner. Faced with labor challenges in the United States, supplier management stands out as a strategic response. By addressing specific issues through specialized partnerships, companies not only mitigate risks but also strengthen their operational resilience. When implemented judiciously, third-party management is not just a solution; it’s a proactive tool to promote more efficient and equitable workplaces in the United States. 

How Bernhoeft can help you:

Established in 2003, we have been in the Third-Party Management market for MORE THAN 20 years, providing security for over 200 clients and monitoring approximately 500 000 third-party EMPLOYEES. With our proprietary system and a unique working methodology, Bernhoeft receives documentation from suppliers, analyzes it, and then generates indicators for our clients. Feel free to reach out to us using the contact information below and we’ll be happy to assist you!