Welcome to this issue of The Contingent Compass. Each week, I send two essays to help you navigate the complex world of the Contingent Workforce. If you need support on your journey, upgrade to a paid subscription where you’ll instantly be able to interact with the community through group chat, live Q&A’s, gain access practical program tools and useful how-to guides.
No one tells mid-sized companies the truth.
You’re not small enough to move fast.
You’re not big enough to bend the market to your will.
You’re somewhere in the middle, and right now? The middle is getting crushed.
Talent is choosing faster, sexier, or safer.
Suppliers are prioritizing scale over loyalty.
And you, despite spending millions, are often left with misaligned candidates, bloated rates, and the quiet suspicion that it shouldn’t be this hard to find great people.
You’re not imagining it.
It is harder.
Because the contingent labor market in today’s world, isn’t designed for you.
The Silent Squeeze No One Talks About
Let’s break it down.
🏢 Enterprise buyers dominate the game. They come with big budgets, massive programs, and guaranteed volume. Suppliers trip over themselves to serve them first, faster, and better.
🚀 Startups captivate talent with adventure, flexibility, culture, mission, and freedom. They’re messy, sure, but incredibly magnetic.
🔀 Mid-market firms are caught in the crossfire.
Not big enough to demand priority.
Not nimble enough to lure talent with charm alone.
Not structured enough to make suppliers care.
Not broken enough to ask for help.
You’re drifting.
One client told me, “It feels like we’re always reacting. We’ve got spend, but no strategy. Contractors, but no control.”
Sound familiar?
The Hidden Cost of Staying in the Middle
💸 You’re overpaying.
Not by a little, by a lot. I’ve seen markups as high as 80 percent in supposedly “competitive” categories.
⏳ You’re wasting time.
When job requisitions float in inbox limbo and suppliers go silent, your teams fill the gap. Overtime builds. Burnout follows. Turnover creeps in. The cost shows up in places you’re not even measuring.
⚠️ You’re exposed.
One misclassified contractor in Canada cost a mid-market firm I worked with six figures in back taxes and legal fees. They thought their MSP had it covered. Needless to say, It didn’t.
😑 You’re invisible.
To suppliers. To candidates. To internal leaders who assume contingent labor is “just working.” Until it isn’t.
Why the Advice You’ve Been Given Doesn’t Work
You’ve been told to follow the playbook.
“Implement an MSP like the big guys.”
“Act lean and flexible like a startup.”
“Add a VMS and it’ll fix everything.”
It’s well-meaning advice. It’s also wrong.
Here’s the uncomfortable truth.
Enterprise companies are ocean liners. Powerful, well-resourced, and slow to turn.
Startups are jet skis. They are fast, unpredictable, and unburdened.
Mid-market companies are tugboats. You carry too much weight, play a critical role, and somehow get expected to pull everyone else into place without ever steering your own strategy.
You don’t need a bigger engine.
You need a smarter map.
The New Mid-Market Playbook (Finally)
Let’s talk about what actually works. Here’s what mid-sized organizations are doing to win.
✅ 1. Reclaim Leverage Without Scale
You don’t need 100 contractors to earn supplier loyalty. What you need is clarity, focus, and consequences.
Set scorecards that reward delivery, not noise
Offer exclusivity on high-priority roles
Hold quarterly reviews, even if it’s just a 30-minute call with the supplier’s founder
One company I worked with cut 18 vendors down to 6 and saved nearly $1 million in 9 months. Not by being bigger, but by being smarter.
✅ 2. Build an EVP for the Invisible Workforce
Your contractors aren’t just hired hands.
They are brand carriers, culture witnesses, and risk exposures.
They leave with opinions. And they share them.
Ask yourself:
Do they feel included in your mission?
Are they equipped to succeed?
Would they recommend you to their network?
If your answer is “not sure,” then you already know.
✅ 3. Don’t Over-Tech. Over-See.
You don’t need a $300,000 VMS. You need answers to basic questions.
How many contractors do we have?
Who are our top suppliers by results, not volume?
Where are we overspending or overextending?
Most companies don’t need more software.
They need someone to ask better questions and refuse to settle for chaos.
✅ 4. Decide Who Owns It Before It Owns You
This is where I see so many (so many!) programs fall apart.
If HR says Procurement owns it, and Procurement says HR owns it, and Legal only shows up when things go wrong, then nobody owns it.
And when nobody owns it, nobody protects it, improves it, or scales it.
Give it a home. Give it a leader. Give it accountability.
Because without ownership, the middle becomes the void.
Right Now: The Market Isn’t Waiting
Here’s what’s happening beneath the surface.
Suppliers are consolidating and deprioritizing low-volume clients
Contractors are choosing flexibility and experience over rate alone
Laws are tightening globally, yet many companies are still operating with 2018 playbooks
DE&I demands are rising, but most organizations still track Tier 1 spend instead of actual outcomes
Budgets are under the microscope, and contingent labor is starting to raise serious questions
You’re not just fighting for talent.
You’re fighting for visibility, legitimacy, and a seat at the strategy table.
✋ Reflection Time
Do you know your average markup?
Can you name your top suppliers by value, not volume?
Are you tracking tenure, compliance, and cost across regions?
Is there one person in your organization who can answer all of this without flinching?
If the answer is no—or a long sigh—you’re not alone.
But you’re not safe either.
🎯 Want to Know How You Actually Stack Up?
I’ve created a 10-minute self-assessment built specifically for mid-market organizations trying to get a grip on contingent labor:
What you’re doing well
Where you’re exposed
What you’re not seeing, but absolutely should be
It’s not fluffy. It’s not generic. And it won’t try to sell you a MSP, VMS or staffing service.
Want it? Just ask.
Or let’s talk. You deserve more than being the latest contestant on “Survivor”.
The middle doesn’t have to mean mediocre.
Not if you choose to play a different game.
If you enjoyed this read, the best compliment I could receive would be if you shared it with one person or restacked it.
If you need support on your journey, upgrade to a paid subscription where you’ll instantly be able to interact with the community through group chat, live Q&A’s, gain access practical program tools and useful how-to guides.