Contract labor has become increasingly popular, yet it also presents a number of challenges. Joshua Smith, VP of Business Development with Atterro, Digital People’s parent company, recently wrote an article for Staffing Industry Analysts with contingent workforce management solutions.
Read a snippet below or visit Staffing Industry Analysts to read the full article.
Why Your Contingent Workforce Program Isn’t Working
Contingent labor is an important and rapidly growing segment of today’s workforce. In 1983, contract workers accounted for just over 0.5% of all employment. Today’s average mix of contingent workers has grown from 12% in 2009 to 18% in 2015, according to a survey conducted by Staffing Industry Analysts. CareerBuilder’s 2016 Job Forecast reported that 47% of employers plan to hire contract workers in 2016.
What is the explanation behind the shift? Contract labor has become an increasingly popular component of employers’ long-term workforce strategies. It provides employers with a cost-effective, steady workforce, while offering workers flexibility and balance not found in traditional jobs. It’s a win-win!
Managing a Contingent Workforce Isn’t Easy
That said, a contingent workforce also presents its own challenges. Managing a constant influx of contingent workers can create:
- Increased stress. Recruiting, hiring, and onboarding the people you need to maintain and grow your business requires time, effort, and skill; when faced with high-volume hiring, those requirements grow exponentially. Greater levels of complexity call for greater levels of expertise. Even if you have a very capable staff of recruiters and HR pros, the process of hiring a large number of workers can be daunting.
- Inefficient processes. A contingent workforce is often handled by multiple department managers within a company, each possibly using a different staffing vendor. As a result, the organization’s staffing model is riddled with inconsistencies. Some workers may be redundant, hired at higher rates, or not tied to the appropriate cost center.