The future of work is changing. The contingent workforce - which is made up of freelancers, consultants, independent contractors and part-time workers - now makes up a huge percentage of the world’s workforce.
In fact, a report from Intuit predicts the number of contingent workers will only continue to increase worldwide. The study notes that today around 25-30 per cent of the US workforce is currently contingent, with that number expected to exceed 40 per cent by 2020.
This has changed not only the way large companies view their workforce targets, but also the way they internally operate. Businesses are no longer focusing on traditional styles of work. Instead, they are adapting to work on a project-by-project basis.
By creating an agile workforce made up of contingent workers that work on a project-by-project basis, organizations are able to respond quickly to ever-changing market demands and overcome the challenges associated with the shortage of skilled workers.
The future of work is about being flexible. It’s about using contingent workers to meet real-time market demand. Here are five key reasons why today’s successful companies are turning to contract workers:
1 - Better access to qualified workers
Most industries in today’s economic climate are struggling to hire full-time talent they need. That is due to a huge shortage of skilled workers, which is only expected to escalate over the next decade.
Thankfully, the contingent workforce gives your company the opportunity to fill workforce gaps with highly-specialized workers at short notice. You’ll be able to acquire the top talent in your industry and only pay for the time period in which you actually need their skills. This not only saves you money, it helps your business produce higher-quality work.
2 - Flexibility
To stay ahead of your competitors, you need to keep up with workforce trends and ensure your organization has constant access to the highest quality workers that your industry has to offer. To do that, you need to be flexible.
The use of contract workers allows your business to rapidly change its strategic direction and adjust to shifts in the marketplace. You’ll be able to rapidly scale your workforce up and down, bring in workers for new projects, access workers with specialized skills and knowledge in a matter of days.
3 - Speed of hiring
Contractors naturally have less red tape than a permanent employee, meaning they can be brought into your organization in swift fashion.
If your business needs to complete a project on short demand, experiences a surge in business or needs to access expert knowledge in a subject that you don’t have an in-house employee for then contingent workers provide you with an immediate solution.
4 - Risk mitigation
Hiring employees is expensive. In fact, a study from Glassdoor found the average company in the US spends about $4,000 to hire a new employee with the entire process taking up to 52 days to fill a position.
With contract workers, however, you can develop a temporary-to-permanent hiring strategy. This will mitigate the expensive and time-consuming risks that come with hiring full-time employees and will help ensure your company is seeing a return on investment on new staff members.
To access these benefits, a contingent workforce management program is vital
A contingent workforce will help your company keep up with the future of work, allowing you to stay competitive and achieve business goals. However, managing the contingent workforce is complex and requires specialist knowledge.
That’s why it’s important to engage with a managed services provider (MSP). An MSP that specializes in the gig economy will be able to implement a contingent workforce management program that helps your business hit workforce targets, save money, streamline processes, have more visibility and control over workers and much more.
Do you want to find out how HCMWorks can do just that? Contact our team of experts today to learn more.