The integration of contractors, part-time employees, and freelancers into the workforce has become a crucial aspect of the evolving business landscape.

Understanding the strategies and trends related to the contingent workforce is essential for organizations to leverage the opportunities arising from this shift.

Numerous fiscal benefits accompany a contingent labor force, making a compelling case for organizations to develop a strategic approach. Let's explore the reasons behind the importance of understanding contingent workforce trends.

Making the Business Case for a Contingent Workforce Strategy — Why Should You Stay Informed?

Prior to the widespread adoption of remote work driven by external factors, such as the global pandemic, the concept of working from home was considered a luxury, mainly for top-tier employees. Many companies in the USA, for instance, were hesitant to allow remote work, with 44% of them not permitting it.

The emergence of unprecedented challenges led to a swift transition to remote work, fostering the adoption of remote technologies and workforce management strategies. One such strategy was the embrace of a contingent labor force to enhance specialized roles and functions.

Understanding contingent workforce trends becomes imperative for business growth in a cultural landscape where remote work is not only normalized but also a key factor in attracting top talent. Here are four reasons to consider when planning a contingent workforce strategy:

1. Explosive Growth in the Contingent Labor Force

  - The rise in the contingent workforce is fueled by changes in work cultures and advancements in technology.

  - Millennials, dominating entry to intermediate level positions, prioritize flexibility over traditional benefits, contributing to the growth in telecommuting and remote interactions.

  - Employers, facing uncertainty during the pandemic, found employing contingent workers through an agile recruitment model to be a sensible approach.

2. Increased Adoption by Competitors

  - About 32% of organizations in the USA prefer hiring contingent workers over full-time employees due to reduced costs.

  - This strategy has gained global attention, with a 26% increase in contingent workers observed in Asia in 2020.

3. Retaining Talent and Global Expansion

  - Contingent employees offer specialized skill sets, requiring minimal onboarding and delivering high performance from the start.

  - A non-employee workforce provides flexibility for setting up specialized teams in new markets and adapting to uncertain times, with 80% of large US companies planning to increase reliance on such labor.

4. Contributing to Diversity and Inclusion (D&I) Goals

  - A well-thought contingent workforce strategy can enhance diversity and inclusion by providing opportunities to underrepresented groups.

  - Inclusive hiring practices contribute to increased productivity, diverse perspectives, healthy work ethics, positive employer branding, enhanced creativity, and a safe workplace.

Discover 7 Emerging Contingent Workforce Trends ( & 11 Quick Win Strategies )

Now that the importance of a contingent workforce strategy is established, let's delve into seven trends and eleven strategies in hiring, technology, and management to excel in contingent workforce management.

Hiring — A Comprehensive Approach

1. Global Hiring:

  - Hiring overseas contractors or freelancers has gained prominence, aligning with diversity and inclusion goals.

  - Companies are increasingly recognizing the benefits of a diverse workforce, with a reported 70% of executives aiming to hire more contingent workers post-pandemic.

2. Creating a Flexible Talent Pool

  - The pandemic has highlighted the need for agile hiring practices, leading to the development of flexible talent pools.

  - Building a roster of contingent workers and maintaining a database of job candidates who express interest in working for the organization are essential strategies.

3. Being the Employer of Choice

  - Becoming an employer of choice involves enhancing employer branding and creating engaging experiences throughout a contractor's lifecycle.

  - With the demand for talent rising globally, retaining top talent within the contingent workforce is crucial.

4. Top Contract Industries

  - Industries such as healthcare, IT, distribution, manufacturing, transportation, and delivery are expected to heavily rely on contract workers post-pandemic.

Technological Trends

5. Onboarding Technology

  - Digital onboarding processes reduce costs associated with manual labor and printing, contributing to an effective contingent workforce strategy.

  - Local compliance requirements should be considered when implementing digital onboarding.

6. Contractor-Friendly Tech

  - Embracing technology that accommodates the contingent workforce is vital, with 47% of HR leaders in Asia emphasizing its importance.

  - Employers need to invest in a tech stack that includes platforms for contractor lifecycle management and familiarity with freelancer platforms like Fiverr and Upwork.

7. Global Payrolling

  - With the increasing number of contingent workers globally, having a platform for global payrolling is crucial.

  - Tech-based Employer of Record (EOR) solutions, such as Remoly, can aid in employing overseas contractors compliantly.

Understanding and adapting to these contingent workforce trends and strategies will position organizations for success in the evolving work landscape.