In the drive towards social and ethical governance, many enterprises focus on full-time employees and direct operations, but what about contractors and contingent workers?

This often-overlooked segment can represent 30–50% of a company’s workforce and directly influence Environmental, Social, and Governance (ESG) outcomes. For large enterprises, incorporating contractors into ESG strategy isn’t a nice-to-have - it’s essential.

The Overlooked ESG Element: Your Contingent Workforce

Despite their scale and impact, contractors are frequently missing from ESG frameworks, reporting, and diversity metrics. ESG conversations often centre on carbon footprints and executive governance, while contractor safety, welfare, and inclusion are left off the agenda. This creates blind spots that can expose businesses to reputational, compliance, and operational risks.

Why does this matter? Contractors are on the front lines, delivering projects, supporting supply chains, and interacting with customers. If they’re misaligned with ESG values or mismanaged, the integrity of the entire ESG strategy is at risk.

How Contract Workforces Can Advance ESG Goals

A well-managed contingent workforce can significantly contribute to ESG goals:

• Agility for Sustainability Projects: Contractors provide flexible expertise for climate and sustainability efforts, without long-term hiring overhead.

• Boosting Diversity and Inclusion: Contractors bring varied perspectives. Including them in DE&I initiatives ensures representation across the full workforce.

• Specialised Skills for ESG: Whether it’s carbon reporting or community engagement, contract experts can accelerate ESG initiatives.

• Sustainable Workforce Practices: A lean core workforce supplemented with contingent talent can reduce over-hiring and support ethical labour sourcing.

Risks of Excluding Contractors from ESG Strategy

Ignoring contractors in ESG planning creates risk:

• Compliance Gaps: Unvetted contractors may breach labour laws or company policies.

• Visibility Blind Spots: Without data on contractors, diversity, safety, and pay equity issues go unnoticed.

• Welfare Concerns: Poor conditions, delayed pay, or lack of safety oversight can damage morale and brand reputation.

• Supply Chain Exposure: Third-party staffing partners must be held to ethical standards to avoid modern slavery or unsafe practices.

Stakeholders Expect Transparency - Including for Contractors

Customers, investors, and regulators increasingly demand transparency across the full workforce. ESG ratings and stakeholder trust hinge on visibility, accountability, and ethical consistency, including for contractors. Boards now expect disclosure on contingent labour practices, making contractor management a governance imperative.

Turning a Risk into a Strategic Advantage

With contingent workers making up a large and growing share of the workforce, responsible contractor management is fast becoming a core pillar of effective ESG strategy. Here's how enterprises can bring contingent labour into alignment with their environmental, social, and governance goals.

Best Practices for ESG-Aligned Contractor Management

1. Build ESG Criteria into Your Contingent Workforce Program
Ensure suppliers and contractors meet your standards for diversity, labour conditions, and governance. Integrate ESG expectations into contracts and vet suppliers accordingly.

2. Improve Visibility and Compliance
Use technology to track contractor compliance, safety credentials, and diversity data. Full visibility is key to ESG reporting and risk mitigation.

3. Extend DE&I Initiatives to Contractors
Make sure your diversity, equity, and inclusion goals include contract workers. Work with diverse suppliers and track demographic metrics across your total workforce.

4. Prioritise Contractor Wellbeing
Provide fair pay, safe working conditions, and accessible support. Engagement and retention improve when contingent workers feel respected and supported.

5. Report Transparently
Include contractors in ESG dashboards and sustainability disclosures. Transparency fosters trust among stakeholders and demonstrates a commitment to responsible workforce sourcing.

Oncore’s Role in Responsible Workforce Sourcing

At Oncore, we help enterprises transform their contractor programs into ESG assets, not liabilities.

• Compliance & Risk Management: We manage WHS, right-to-work checks, insurances, and audits so clients stay ahead of regulatory risk.

• Ethical Labour Practices: Our supplier codes and Modern Slavery Policy protect human rights across the contingent workforce.

• Diversity & Inclusion: Our data capture, DE&I processes, and partnerships help clients create a more inclusive workforce.

• Contractor Care: We offer personal support and a safety-first culture, with training, resources, and a direct line to resolve issues quickly.

• Transparency Tools: Our dashboards provide real-time insights on compliance, diversity, safety and more - giving HR and procurement leaders the data they need to act.

Responsible contractor management is the next ESG frontier. With stakeholder expectations growing and the cost of inaction rising, now’s the time to bring contingent workers into the ESG fold. Partnering with Oncore gives your business the systems, expertise and visibility to do just that - responsibly, transparently, and at scale.