There is an ongoing war for talent, and a compelling portion of the workforce is continuing to turn to contingent workforce to round out their employment needs. Around 40% of the current workforce consists of contingent workers, with the average company having 18% of their workforce being contingent. Young, educated workers are in high demand, and many prefer working on a contingent basis rather than as a permanent employee for a multitude of reasons. The current workforce values the work-life balance that can come with contingent work, along with it’s many flexibilities.
There are many emerging contingent labor workforce trends, and we have listed seven of the most relevant that you should know when building your blended workforce.
Rise of Technology
Technology is a major driving force behind the rapid expansion of the contingent workforce. New technologies are allowing companies to have speedier sourcing and onboarding programs, along with more efficient processes. The rise of technology is opening doors for contingent labor opportunities left and right. The impact of technology has made it easier for CPO’s and CHRO’s include upgrades to Vendor Management Systems (VMS), Freelance Management Systems (FMS) and Managed Service Providers (MSP) are just a few.
Use this to your advantage. In a study done at ProcureCon, 62% of procurement professionals report seeing technology as their biggest opportunity for cost savings. Use of different resources to determine pay rate, track the industry and gain market visibility, enhance your ability to negotiate and so much more. For example, here at PeopleTicker we help you maximize savings on contingent labor spend with a proprietary technology and expert benchmarking analysts, delivering market rates for workers across skill sets and regions as you need them.
Increased Importance of Mobility
Mobility gives workers the ability to work from anywhere at any time. With the advancements in technology, geographical barriers are no longer a problem. This is especially important when utilizing contingent workers. The human cloud is becoming increasingly important in the workforce, made possible by technology, and is increasing mobility. The human cloud is defined as a set of work intermediation models that allows work arrangements to be established entirely through a digital platform. From procurement to payment, an entire work arrangement can be completed without leaving the office.
Use this to your advantage. The mobility of the contract workforce allows many of these workers to work from home, which significantly cuts down on overhead costs. The average real estate savings for a full-time telework employee is $10,000/employee/year. Studies have shown that teleworkers not only respond to emails and phone calls more efficiently, but teleworkers are also more efficient. Businesses lose $600 billion a year in workplace distractions, so use this as a chance to cut down your overhead costs and save your organization money with the mobility of the contingent workforce.
A Job for Life is a Thing of the Past
The days of committing to a company for life is gone. Workers no longer feel that they have to give a life long commitment in return for job security. Today's workforce craves the flexibility and work-life balance that consulting offers, while employers benefit from the flexibility of being able to respond to market demands in a speedy fashion. The contingent workforce is changing the way people think of careers, so it’s time to start pushing the benefits workers gain from contingency.
Use this to your advantage. Contingent workers allow for more innovation and diversity in the workplace. Diverse teams outperform non-diverse teams by 35%, so use the diversity of the contingent workforce to further your business goals. Build relationships with your contingent workers so you can have access to talented networks which you can tap into later in the future.
An Increasingly Fast-Paced World
Valuable skills are in high demand, and organizations need to keep up with quicker innovation cycles. With contingent workers, employers can tap into an on-demand talent pool that allows them to be able to be more flexible and work with ease.
Use this to your advantage. 40% of companies stated that they found their best talent through the on-demand workforce, making it a great way to bridge the skills gap that many employers face. Use the contingent workforce as a way to open new doors for your business. For example, cater your job descriptions to the kind of contingent employees you want to attract. Here at PeopleTicker, we do all of that heavy lifting. We track all your jobs and upgrade your catalog of job titles and descriptions.
Use of Direct Sourcing
In contingent workforce management, it has been common for sourcing to be done indirectly through suppliers. With new technology arising, and the availability of a plethora of contingent workers, there is a trend toward more direct sourcing of labor. Businesses are increasingly engaging with workers themselves, rather than going through traditional processes.
Use this to your advantage. According to the Global Contingent Market Estimate, the work spend estimate for independent contractors globally was $1.026 trillion and for Statement of Work it was nearly $1.072 trillion. This is a huge chunk of the labor market, and it is well worth looking into for your talent needs. Your company will still need help in determining compensation and pay rates, however upon receiving this information, you’ll be able to jump right into the contingent workforce to start sourcing.
A Social Environment
The social environment for contingent workers is growing, and they are building communities as a place to collaborate. This gives the contingent workforce the ability to gain feedback, share, learn, connect and build their own professional networks.
Use this to your advantage. In a study by Microsoft, 60% of workers believe that social media helps promote creativity and innovation. Use this key aspect of the contingent workforce to build your employer brand. Allowing social use, and even encouraging it, ups the chances of a worker sharing good experiences with others. Your happy contingent workers with allow you to gain more happy workers, which means a larger skilled network for placement.
Importance of Match-Making
This gives employers quality control. The contingent workforce is being used to fill roles strategically, rather than just “renting bodies.” Choosing the right worker, although contingent, is becoming more important now than ever. There are social networks and platforms that give employers more information to make better decisions when sourcing, thus improving efficiencies and reducing risk for the employer and the employee.
Use this to your advantage. Companies lose $550 billion each year in lost productivity because employees are not the right fit for the job and the process wasn’t looked into. Use technologies that are available to be more selective about your contingent employee program. For example, here at PeopleTicker, we provide critical insights from leading industry experts on a market’s supply and demand, as well as demographics and psychographics to help a company’s sourcing.
Overall, whether you’re a global enterprise, a major corporation, or even a large non-profit, the contingent workforce can help your company grow. With this workforce, companies can access pre-screened, pre-trained workers with niche skills that can get to work quickly. The trends are shifting in favor of the contingent labor workforce, and businesses need to innovate and readjust to better their current talent management strategies.