Growing Contingent Workforce Has Many Benefits for Employers and Workers

The contingent workforce is expected to accelerate over the next couple of years. In fact, it is estimated that 50 percent of the workforce will be comprised of contingent workers by 2019.

By Tom Clark

February 21, 2017

Editor’s Note: Tom Clark is the Director of Supply Chain & Logistics at Direct Recruiters, Inc.  Tom is a member of Council of Supply Chain Management Professionals and is a certified Lean Six Sigma Black Belt.  He is a Supply Chain Services Management Officer graduate from the US Army Quartermaster Center & School, Fort Lee, Virginia. He also earned his Bachelor of Science in Business Administration from John Carroll University, Cleveland, Ohio with a dual major in Business Management and Logistics. Contact Tom Clark at 440-996-0874 / tclark@directrecruiters.com.

The face of the U.S. workforce is changing. There’s high growth when it comes to temporary workers, contractors, independent consultants, and freelancers. New technologies, cost factors, and a whole new generation of young professionals wanting to work in a gig economy (http://whatis.techtarget.com/definition/gig-economy) are fueling this growth.

The contingent workforce is expected to accelerate over the next couple of years. In fact, it is estimated that 50 percent of the workforce will be comprised of contingent workers by 2019. 

This dynamic shift is causing organizations to explore ways a flexible workforce can help them achieve their goals and derive the many benefits such as:

• Employers have access to niche and specialized skill sets that may not be available in-house, especially when it comes to IT.

• Contingent workers typically do not require as much training since they were hired for work that matches their expertise.

• It’s a way to ramp-up fast to cover short-term projects without having to hire full-time employees.

• Organizations can easily “dial up” or “dial down” staffing as needed without having to pay FTE benefits.
 
• Internal resources are freed-up to focus on higher priority items.

For many professionals, contingency work is very attractive since opportunities are plentiful, the remuneration is desirable and the work can be rewarding. In addition, it meets the needs of many Millennial workers and their desire to be flexible.

Making the move from an employee to a contingent worker takes some preparation.  Here are a few suggestions:

Identify the niche where you have skills and expertise. Know your passion. Also, pinpoint what type of services and advice you can offer that organizations are willing to pay for.

Target your market and location. Determine what type of organization you want to work with and once decided, think about location. Do you want to work remotely or on-site? Are you open to relocation or a commute via airline to and from work?

Build your network and brand yourself. It’s important to start building your network once you’ve decided to be a consultant. A strong contact base will help you connect with the resources needed in order to find work.  Also, position yourself as an expert, someone that an organization cannot do without. Now, combine both a professional network and social network to help you spread with word faster.

Be ready for a trade-off. There’s uncertainty associated with gig work. While there’s flexibility, there may not be enough work for full-time hours or a stable income. You may have to supplement your income with another source.

Decide whether to go solo or engage with a consulting and staffing firm.  If you have the entrepreneurial spirit and want to approach a specific organization directly for a long-term gig, you might want to go solo. However, if you’re open to both short-term and long-term opportunities in various locations, a consultant staffing firm might be the answer.

The rise of a contingent workforce and gig economy will only continue to grow and with it, much opportunity. A consultant or contractor has more freedom than a regular employee to circulate within their professional community and to take more jobs in more challenging environments. For organizations, a contingent workforce means acquiring the right skills and expertise needed without the overhead costs associated with payroll benefits and administration. No doubt, a win-win situation for both.