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HCMWorks Insights

4 Contingent Workforce Trends That Will Continue to Impact Your Company in 2020

Posted by HCM Works on 10 Jan 2020

Last year at HCMWorks we wrote an article about a study by The Economist that found the demand for contingent workers would skyrocket over the next five years, with more than 61 percent of top bosses expecting the use of contract labour to increase.

The report surveyed executive decision-makers at 210 US and UK companies with at least 2,000 employees, finding that contingent workers account for more than a fifth of the workforce at over half (58 percent) of those businesses. A figure set to grow over the coming years.

Similarly, an Intuit 2020 report, notes that roughly 25-30 percent of the US workforce is currently contingent, with more than 80 percent of large corporations planning on “substantially increasing” their use of a flexible workforce in the coming years.

By 2020, it is expected that the contingent workforce will exceed 40 percent of the entire US workforce.

No matter what industry your large organization operates in, there’s no doubt that contingent workers will make up a significant portion of your workforce throughout 2020 and the coming years.

So, what contingent workforce trends could impact your company as we move through 2020? We’ve listed the top four here:

1 - Increased dependency on vendor relationships

Today’s companies are more dependent on vendor relationships than ever before. That’s because large organizations rely on vendors for all aspects of their business, from procurement, service providers, talent acquisition and much more.

Your company might be dealing with tens, hundreds or even thousands of vendors to provide products and services to your organization. To ensure your company stays both competitive and profitable, it’s essential that these vendors are compliant with your terms of agreement and that they meet your expectations.

Do you want to find out how your company can create a successful vendor compliance program? Read our blog titled ‘5 Steps to Create an Effective Vendor Compliance Program’.

2 - The need to position your company as an ‘employer of choice’

According to a Manpower survey, nearly half of global employers (45 percent) are experiencing difficulty filling open positions. In fact, in the US there are currently more open positions than skilled workers to fill them. This means workers generally have the luxury of being able to choose the company that they want to work for.

To access these workers and ensure your company is able to acquire the top talent in your industry, it’s important that throughout 2020 your organization is able to position itself as an ‘employer of choice’.

3 - The importance of creating a flexible talent pool

The increasingly challenging nature of meeting workforce objectives means it’s even more critical that your organization introduces new innovative recruitment strategies. Creating a talent pool can help here.

The creation of a talent pool, which is a database of potential job candidates that have already shown interest in working for your organization, will help your company reduce talent acquisition costs, find highly-skilled candidates that are interested in your firm and speed up the recruitment process.

4 - How changing laws have highlighted the need for a world-class contingent workforce management strategy and the use of an MSP

Last year, California introduced a new law (Assembly Bill 5) which required most companies to reclassify contract, freelance and contingent workers as full-time employees eligible for benefits, a guaranteed state minimum wage and further protection under the state’s employment law.

This law, while it doesn’t apply to many other states or countries around the world, does shine a light on just how important it is for your company to implement a successful contingent workforce management strategy.

That’s why in 2020, if you have not done so already, your organization should consider turning to the help of a managed services provider (MSP) with specialized expertise in the contingent workforce.

An MSP will revolutionize your company’s entire contingent workforce management strategy, bringing you more visibility and control, better talent acquisition, faster hiring times, significantly lower spend and a number of other benefits.

Do you have any further questions about how new trends in the contingent workforce could impact your organization in 2020? Get in touch with our team of contingent workforce management experts today. We would love to answer any questions your company has.

Exploring Your Contingent Workforce Ecosystem

Tags: Contingent Workforce

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