The contract workforce appears to be an important hiring solution of choice for businesses in the current economic climate. Statistics compiled from the Staffing Industry Analysts’ Workforce Solutions Buyer Survey 2018 reported 22 percent of respondents said their staff is contract and predict that this number will rise to 30 percent by 2028.
According to an article published on HRO Today, a recent study by Ardent Partners titled, The State of Contingent Workforce Management 2017-2018 states, “…40 percent of today’s global workforce is comprised of non-employee talent, including independent contractors, freelancers, consultants, and temporary workers.”
Additionally, data from the study found that 71 percent of companies are using the contract workforce to allow them to be more “agile” in their businesses.
Even though companies learned to do more with less during the last recession, some businesses also realized they could quickly onboard impact players when their expertise was needed to meet project objectives—and downsize when they were complete.
In the current market, this newfound flexibility gives companies the edge they need to stay ahead of their competition when business opportunities arise.
Another primary driver for contingent workers is to cut overall costs.
It’s not unusual for contract workers to make more per hour than traditional employees; however, companies save dramatically on typical permanent worker costs because they don’t have to pay out for taxes, insurance, benefits, training, equipment, or other resources.
Other Benefits of a Contract Workforce
The varied work experiences that contract workers bring to the table give them a fresh perspective rather than the company’s status quo—because they have come in from the outside. Their fresh perspectives bring great value to a company when it comes to problem-solving.
Another benefit for businesses is they get to “try” candidates temporarily before making a permanent commitment. This trial period allows organizations to find out whether certain candidates will be a good fit or not for the long haul. This trial period can help curtail fall-off situations of new hires without risking the up-front costs that are invested into them.
The contract workforce seems to be a more permanent solution for HR and hiring managers in search of the “top talent” they need to move business forward quickly, while filling in the skills gaps they lack—and ultimately implementing cost savings for their company’s bottom line.