Trends of the Temporary and Contingent Workforce

The reality of work is changing and will continue. The world is not going to snap back to one where companies only hire full-time employees who work pre-determined, inflexible hours. People will not retire from the same company that hired them out of high school/college. They will work for many companies; in many cases, during the same time period. They are the contingent workforce of today, and they are growing.

No matter what you call them – contingent, temporary, on-call, freelancers, outsourced or (even) contractors – today’s “non-employee” workforce has grown into a major faction of today’s working population. They make up approximately 12% of the working population. About 1/3 work in manufacturing; about 1/5 are administrative.

And they do impact business, because the basic rules of work have not changed. There are tasks that need to get done, and there are people out there than can do those tasks.

However, what is different is the way those tasks get done. Running a company profitably is very different today. Competition is greater…it spans continents and can undercut you in so many ways. Costs are rising, including healthcare and benefits, workers compensation, and taxes. Change, thanks to technology, occurs in a blink of the eye. This has caused the pace of business to speed up to the point that (within certain industries) if you take a vacation, everything might be different when you return. With technological change comes the need for new skill sets. Businesses need people with new skill sets to stay on-top of technology to stay ahead of the competition. It is as simple as that.

However, changing demographics is making an impact as well. People are living longer, unemployment among younger workers is skyrocketing, and two income households are the norm. This is changing our perception of work, and causing many workers to look for alternative work arrangements. They cannot report to work at a pre-determined time day in and day out. Flexibility the new structure for work.

As a business leader, you have to think differently to keep yourself competitive and sustainable. You need to break through some paradigms regarding the structure of work.

When you embrace project-based, contingent/temporary workers, the benefits include increased employee morale, lower costs and improved productivity. Remember, many contingent workers choose to find work independently because they enjoy / need a certain level of flexibility. In addition, depending upon their skill levels, they can earn much more. In fact, 54% of contingent workers strongly agree with the statement “I am paid what I’m worth,” compared to only 42% of permanent workers (worldatwork.com).

In addition, contingent and temporary workers are a cost savings. When employed through a staffing firm (such as Snelling) there are no benefit costs, 401K admin/matching costs and no healthcare costs. When the task is completed, the person moves on to another project – provided for by the staffing firm. This also helps to reduce costs.

At Snelling, we have seen the world of work change over and over again. We have been a leader in the temporary staffing space for 60 years. We understand change, and we can help you put together a strategy to help you adapt effectively to change and be profitable and competitive. So contact us today, and let’s get to work – on a contingent basis!