>>How The Contingent Workforce Will Affect Your Company

How The Contingent Workforce Will Affect Your Company

According to Forbes, 40% of workers are now part of the contingent workforce, up from 31% in 2005.

This group includes part-time workers (who make up 16% of the workforce), independent contractors (13%), on-call workers (3.5%), self-employed workers (3%), contract workers (3%) and agency temps (1%).

While many workers are in this category involuntarily and would prefer a different type of employment, independent contractors and self-employed people are mostly happy with their situation.

Whereas 59.3% of agency temps and 48.3% of on-call workers and day laborers would prefer a different type of employment, only 9.4% of independent contractors and 7.5% of self-employed people feel the same way.

Contingent work can be inconsistent, but many independent contractors and self-employed people feel that the benefits of being independent outweigh the risks.

Platforms that enable the contingent workforce, such as Uber and Etsy, have made it easier to switch from full-time to contingent work – and it’s expected that the number of independent contractors will continue to rise.

As contingent work becomes more mainstream, more workers will be inclined to try it out. In fact, MBO Partners has estimated that there will be 24.5 million independent contractors in 2019, compared to 17.9 million last year.

With 32% of employers already having difficulty filling jobs, this growing trend toward contingent work could shrink the available talent pool and lead to a more severe talent shortage.

As the most skilled workers are likely to be the most successful contingent workers, they may be less inclined to return to permanent work. While contingent workers can be valuable additions to a team, critical positions are often best filled by a permanent, full-time worker.

As the demand for skilled talent increases and the size of the talent pool decreases, competition for key hires will become more fierce and many companies will turn to direct hire agencies to fill key positions.

Direct hire agencies can act as a strategic partner to help you become more competitive in the talent marketplace. They can help you build your employer brand, improve your candidate experience and review your compensation strategy – all of which will help you recruit and close your top choice candidates.

Specialized recruitment agencies usually have a pulse on the candidate market, as well as the industry, and can provide invaluable advice for hiring in a tough market. Since you only pay a direct hire agency when a candidate is placed, they are invested in your success and incentivized to find you a qualified candidate as quickly as possible.

By |2017-08-02T23:37:50+00:00June 24th, 2015|Categories: Talent Acquisition Trends|Comments Off on How The Contingent Workforce Will Affect Your Company

About the Author:

Jen Dewar is a marketing consultant in the HR technology space with a focus on developing educational content for recruiters, corporate HR professionals, and staffing agency owners. She has spent the past 10 years working with a wide variety of companies — from corporate marketing for healthcare organizations and recruitment firms, to startup marketing for both Identified and Bright.com, prior to their respective acquisitions. When she's not doing marketing, you can find Jen snowboarding in Tahoe with her husband, traveling abroad, or enjoying a night in with friends and a good bottle of wine. She's a graduate of the University of California, Santa Barbara, with a degree in Socio-Economic and Political Global Studies.