I often question the traditional recruiting methods whenever I come across contingent staffing tactics. In the ever-evolving ecosystem of modern technology use cases, contingent staffing has surely emerged as a pivotal component for business success. Contingent workers—or as you like to give other nouns, such as freelancers,
consultants, and temporary workers—have become an integral part of an organization’s growth strategy. As per a recent report by Research and Markets, the global contingent workforce is estimated to reach $465.2 trillion by 2031. But it shouldn’t be a surprise because this strategic initiative is already opening multiple doors for the corporates.
However, as we look forward, let’s not forget the current situation of many industries amid mass layoffs taking the front seat. While these industries have taken steps to either freeze hiring or lay off employees, many are experiencing serious talent shortages and are in dire need right tools and strategies to build a resilient workforce.
Well, in my opinion, joining hands with a contingent workforce is the only optimal solution for everyone here. In fact, it’s the best way to kill unnecessary skills gap, which is spreading more rapidly than the pandemic.
Today, organizations are witnessing economic instability, forcing them to resort to layoffs to reduce costs and maintain financial stability. However, leaning on contingent staffing can help companies cut costs while completing projects seamlessly. This approach gives businesses flexibility, which is otherwise impossible to achieve.
On the other side, the high demands for talent can also be addressed due to this approach of contingent staffing. Companies can leverage contingent workers to bridge immediate skills gaps while long-term hiring processes are underway. This can help organizations meet their immediate project and productivity needs.
While these are mere two conditions that can benefit from contingent staffing, there are many other benefits of this new hiring tactic.
Adaptability is a need in today’s fast-moving business environment. No one knows what the future holds, thus, it’s best to prepare beforehand. The contingent workforce allows companies to pick the pace by fulfilling their immediate needs. This flexibility is especially valuable in industries characterized by seasonality or unpredictable workloads.
By hiring contingent workers you can seamlessly save cost. While overhead costs on training, transportation, etc., can be saved, hiring contingent workers eliminates the need for costs required for administrative tasks. Also, since contingent workers are often brought in for specific projects or tasks, it becomes easier to allocate resources and budget for those projects accurately.
Maintaining diversity in the workplace is one of the most important goals of organizations these days. Through contingent staffing, companies can foster diversity by bringing a workforce from diverse backgrounds possessing different perspectives and skills. This can work as an asset for the organization as it can seek fresh ideas and innovative solutions to complex problems.
Many gig workers prioritize work-life balance and the freedom to choose their projects. In fact, it’s one of the reasons why these people switch to becoming contingent workers. And this works both ways. In this sense, if an organization chooses to seek help from a contingent workforce then the workload on the full-time employees eventually reduces. Companies that offer flexible work arrangements can attract top talent and foster a culture of innovation.
Organizations trying to build an army of contingent workers must consider a few things before they proceed. The first and foremost aspect is to carefully track the productivity and performance of the full-time employees with the intervention of contingent workers.
Consider constructing a system that appreciates every employee, whether it’s a contingent worker or a full-time employee. Put focus on building relationships for long-term benefits. Another important point to consider is having everything centralized to avoid any chaos and confusion. Not to mention, confusion can lead to unnecessary wastage of resources. To address these challenges, think of implementing advanced workforce management technologies, including project management tools, communication platforms, etc.
Contingent staffing is not just a trend of 2023, it’s a fundamental shift in how organizations are utilizing talent in the age of digital transformation. To thrive in the fast-changing business environment while enhancing agility, businesses need to embrace contingent staffing.
Director of Strategic Accounts