5 Reasons Why More Enterprises Are Choosing to Work with Contingent Workers
As we cruise into 2021, let us pause and assess what this year has to offer. With technology revolutionizing the world around us, the means of communication will be more effective and diverse than ever, allowing organizations and professionals to be comfortable with the culture of remote working. And with such convenience of telecommuting, the trend of appointing non-permanent workers – part-timers, freelancers, temps and contractors – will continue to accelerate. A report by Intuit highlighting prevalent trends for the next decade states that companies will increasingly shift from full-time employees to a contingent workforce. According to this report, nearly 30% of the U.S. workforce is currently contractual and over 80% corporates plan to increase their deployment of contingent workers in the near future.
Contingent staffing helps turn employment costs into variable expenses, while boosting business efficiency and flexibility. The rising popularity and various advantages of a contingent workforce are influencing corporates to turn towards contractual staffing. There are several benefits that a contingent workforce can provide to a business. Some of them are as follows.
1. Addresses the looming skills deficiency
Many companies in today’s market are finding it increasingly tough to discover personnel with critical, futuristic skill sets. These entities are turning towards contractual or gig workers to bridge the skills gap in their workforce and avail the required specialized capabilities. This ensures the right talent supplementation at the right time.
2. Allows for higher flexibility
A contingent workforce gives your business the agility to swiftly respond to changing market conditions and scale your business based on a particular venture. Such workers help your business react to a dynamic market and its demands. Your business is endowed with the ability to quickly respond and can adapt to market conditions, leaving behind the long delays associated with regular full-time employees and employment.
3. Faster and cost-effective hiring process
The reasons for organizations to hire contractual workers could range from needing specialized skills for a certain project to needing more hands during peak season. Irrespective of the motive, non-permanent workers can be taken on surprisingly quickly and with lesser red tape than any permanent employee. Experienced contingent workers can often be appointed at short notice, providing your organization with an instant solution.
In addition to the fast-paced hiring process, it is also considerably more economical than hiring a permanent employee. Most of the costs linked to hiring permanent employees can be abridged by engaging non-permanent workers. Organizations do not need to pay for vacation time, medical benefits or sick leave. You even end up saving on costs for on-boarding, training and skill development.
4. Fits the current and upcoming business needs
It is common for businesses to see a change in headcount based on the organization’s growth and the market conditions. Contract workers provide companies the chance to analyze their organizational needs on an ongoing basis and take the right decisions, unlike static employees who compel them to make long-term commitments.
5. Disruptive thinking
While your current workforce may be highly instrumental in the success of your business, a fresh player to the game will always bring new and disruptive ideas, lending a different perspective. The timely entry of a skilled specialist and his novel views will develop your business during the tenure they work with your organization.
That’s why this year, the practice of recruiting outsourced talent can not only reduce costs but also allow you to acquire the best talent available in the market, facilitating quick adjustment to market changes, business scalability and shift in demand for skills. And while some enterprises may still depend on a Managed Service Provider or MSP to recruit and manage their contingent staff, several forward-looking entities are now exploring providers with value-added staffing services powered by AI-based testing platforms, to avail end-to-end workforce solutions like sourcing, testing, interviews, coordination, verification and onboarding.