If you’re a large organization it’s extremely likely that you are already making use of the ever-growing contingent workforce, but if you’re not,then creating a strategy to hire talented non-permanent workers should be top of your agenda in 2019.

The contingent workforce is part of the wider gig economy, and the number of these non-permanent workers in the US has exploded over the past couple of years. In fact, external workers now make up a staggering 30 percent of the entire US Workforce and this is only expected to rise in the coming years.

Why is the contingent workforce increasing?

Just like most aspects of our lives, technology has completely revolutionized the working world. The progression of communication technology has allowed workers and organizations to become more comfortable working with each other outside of the office.

This technology, combined with a generation shift, has freed up workers to work from where they want and has allowed them to choose the company or project they want to work with/on at any given time. For many, non-permanent work simply fits in better with their chosen lifestyle.

Businesses can’t complain either. With shortages in skilled workers a common concern across many industries, organization’s today depend on agile, flexible and on-demand labor if they are to access top talent, prepare for rapid scalability and grow their business.

As a result, these non-permanent workers come with a huge range of benefits for your organization. HCMWorks has listed six key benefits here:

1 - Filling the skills gap

In today’s market, many organizations are finding it increasingly difficult to find workers with critical skill sets. Facing a challenge to bridge skills gaps in their workforce, many are turning to the contingent workforce to acquire top talent.

By making use of the gig economy and hiring external workers, organizations are able to ensure they have access to workers with specialized skills to complete work on a project-by-project basis. This is a great way to supplement your internal talent.

2 - Increased flexibility

Ever felt like your organization is unable to respond rapidly to changing market conditions or unable to scale up or down depending on a certain project? If so, then the contingent workforce would give your business the flexibility it needs.

Non-permanent workers allow your business to respond to the market and its demands as they happen. Your business will be able to quickly respond, change and adapt to market conditions, without the long delay often associated with full-time employees.

3 - Faster and more cost-effective hiring processes

Whether you need contingent workers to deal with your company’s peak season or you need specialized skill for a particular project, contract workers can be brought in quickly and with less red tape than a permanent employee. Experienced contract workers are often available at short notice, and will provide your company with an immediate solution.

Not only is the hiring process faster, it’s also considerably more cost-effective than making a permanent hire. In fact, many of the costs associated with hiring permanent employees can be reduced by engaging with non-permanent workers.

Despite this, contract workers often have higher salaries than staff, your organization will not have to pay them medical benefits, vacation time and sick pay. That’s not to mention the far lower and non-existant costs when it comes to onboarding, training and professional development.

4 - You can assess business needs on an ongoing basis

It’s not uncommon for businesses to find that their headcount shifts rapidly depending on market conditions and the growth of the company. Contract workers provide the perfect opportunity to assess organizational needs on an ongoing basis rather than committing to permanent employees.

5 - Fresh perspectives

New faces bring new ideas, and that’s just another benefit your organization can realize from non-permanent workers. The flip side of this is that a static workforce, made up of employees that have been with your company for years, can often lead to a lack of creativity and “inside the box” thinking.

Don’t get us wrong, your internal workforce is highly important to the success of your business, but sometimes it can just take one external worker to completely change the way a certain aspect of your business operates - for the better.

A highly specialized and skilled worker can drive your business forward and encourage growth during the time they work with your company.

6 - Trial new positions or staff members

The contingent workforce allows businesses to hire non-permanent workers with an eye to full-time employment. This process can enable your company to make sure that a certain position is part of your long-term plans or to ensure that a specific individual fits into your company culture.

By initially hiring workers on a temporary basis, your organization can test out the fit of a contractor with a view of ultimately making them an employee at a later stage.

To learn more about how HCMWorks can set up your contingent workforce strategy and ensure it is managed correctly, contact us today.