04 Apr Recent Trends in the Contingent Workforce Landscape
Staffing Industry Analysts’ update presented a bright future for the contingent workforce. In their report, this global advisor on contingent work stated that this industry segment grew 3% in 2018 and will grow 3% in 2019, reaching $131 billion in revenue in 2019. This projected growth is no surprise to anyone who has been paying attention to the contingent or “on demand” workforce over time.
In the current economy, contingent workers are an integral and growing part of the workforce. Whether freelancers, consultants or contract workers, contingent labor of all skillsets is in high demand. For many organizations, contingent workers are the fastest and most effective way to augment their current workforce and respond to rising talent demands, staff large strategic projects, add new skills and expertise and accelerate growth.
The role of the Managed Service Provider (MSP) has evolved. According to NelsonHall’s Next Generation Managed Services Programs, MSPs are an increasingly influential and strategic partner in helping organizations better manage their contingent workforces. MSPs provide consultative, data-based insights to clients. From contingent workforce spend and talent channels to supplier performance, the data and analysis provided by an MSP is hugely valuable for organizations as they embrace a more contingent workforce model.
Companies today have on-going challenges as it pertains to changes in regulatory compliance, mergers, acquisitions, and constant business transformation. Managing the contingent workforce can be a time consuming and costly process. This is another important factor contributing to the importance of implementing an MSP as part of a business.
People Ticker, a company providing market intelligence and bench marking to organizations, has outlined some key emerging Contingent Labor Workforce Trends.
First, 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.
Another important trend is the 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.
Another trend is that workers no longer feel that they have to give a lifelong 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.
Direct sourcing is another trend that will likely be in the forefront. 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.
The way people work will only become more flexible and variable. Staffing firms will need to be ready to address the different forms of contingent work for which clients will be searching. In addition, the industrial procurement staffing supply chains that affect contingent workforce management will continue to develop. As a result, staffing businesses will need to keep up with those changes to provide the kinds of hires needed, whether they’re temporary or permanent.
Lauren works closely with vendors and hiring managers and is committed to building a long-term relationship with each key stakeholder.