The gig economy - which is made up of contingent workers such as consultants, freelancers, independent contractors and part-time workers - has grown exponentially in the last few years. It’s now a way of life for many workers across Canada and the US.

In fact, statistics from the US Bureau of Labor Statistics found contractors, freelancers and contingent workers make up around 35 percent of the US workforce last year.

Despite this, many organizations are still failing to optimize their use of the contingent workforce, and some aren’t even using this highly-skilled and qualified workforce at all.

No longer can large companies operate the same way they did 20, 10 or even five years ago. Contingent workers are now a necessity for businesses that want to keep up with the future of work.

To succeed in the current marketplace, organizations must be ready to find ways to adapt and better align themselves with market conditions. HCMWorks has created a list of four warning signs that signal your business needs to make better use of the contingent workforce:

1 - You are over-spending on recruitment

One of the biggest expenses for your organization is recruitment. Hiring is complex. It takes a lot of skill, patience and time to find the right candidate to fill an open position. This is expensive, and you need to take into account all associated costs such as your internal/external recruitment team, advertising the position, background checks, onboarding, the true cost of a bad hire and much more.

By making the transition to a project-based work environment in which you make use of an agile workforce to access highly-specialized contingent workers, your company will save money on recruitment by only paying for resources when they are needed.

2 - Your company is experiencing a skills gap

In the current marketplace, there is a huge shortage of skilled workers. In fact, a 2018 survey from ManpowerGroup found talent shortages are continuing to grow around the world - with 41 percent of Canadian employers reporting difficulty filling jobs throughout the year.

If your company is currently lacking a specific skill set or simply needs expertise for a one-off project, the contingent workforce can help supplement your internal workforce with access to the top talent in your industry.

3 - Your company needs to innovate to keep up with the competition

Success in today’s marketplace is all about flexibility. Your company needs to be able to assess business needs on an ongoing basis, ensuring you are delivering exactly what’s expected of you and making sure you are competitive in your marketplace.

Have you found that your company needs to access different skills at a moment's notice? Contingent workers will give you access to the expertise you need to continually innovate, while traditional employees can remain focused on your core business functions.

4 - You are struggling to scale up or down when needed

Your company could experience headcount shifts, rapid growth or seasonal demand at a moment’s notice. With traditional employees, this is hard to deal with since the hiring process is so time-consuming and expensive.

Having a contingent workforce management plan in place will give your company access to talented workers when you need them. This will allow you to scale up or down with ease, depending on your current business demands.

Contingent workers come with a vast array of benefits that will ensure your business stays competitive, but the management of this workforce requires expertise and a proper strategy if it’s to be truly effective.

Are you looking to optimize your organization’s contingent workforce management strategy? Contact HCMWorks today. Our team of experts would be more than happy to answer any of your contingent workforce-related questions.