The job market is constantly evolving, and organizations are seeking innovative ways to stay ahead of the curve when it comes to attracting top talent. One solution that has stood the test of time is the use of contingent workers. As companies navigate through volatile markets, this trend is expected to accelerate in 2023.
In 2022, the world of work saw some major shifts, including the rise of remote work and the growth of the gig economy. Due to the present economic landscape, businesses view contingent workers as an indispensable resource in fulfilling their workforce requirements with a cost-effective and flexible option.
Cost-savings - A significant driving force
Reducing worker costs doesn’t mean settling for a lower caliber of workers. Contingent workers typically receive a higher hourly rate than their permanent counterparts. But, this higher pay does not include the benefits that come with being a full-time employee, such as health insurance, paid time off, retirement plans, etc. So, by employing contingent workers, you save on costs while being able to access the specialized skills and expertise needed for your open roles.
Contingent workers also offer a significant advantage in terms of adaptability. With them, you can effortlessly adjust your workforce size as your hiring needs change. This means that during peak periods, you can bring in more workers to handle the increased workload and then reduce the size of your workforce during slower periods. This scalability provides you with the ability to respond quickly to changes in your business needs without having to make long-term commitments. In turn, you save money and maintain control over your workforce, all while ensuring that your business runs smoothly.
Contingent Workers Benefit You and the Economy
As a business owner or decision-maker, you’re always looking for ways to stay ahead in the game. By utilizing the benefits of contingent workers, you are opening yourself up to a thriving gig economy and gaining access to a diverse range of skilled professionals with unique abilities and expertise.
In addition to offering access to top talent, contingent work has had a positive impact on the economy. It has created new opportunities for individuals to work in various industries, develop their skills, and increase their income through multiple projects. This benefits not only workers, but also businesses that require access to skilled labor.
Also, with the rise of remote work and digital transformation, you can find the best talent for your projects, regardless of their location. This allows you to remain agile and competitive in an unpredictable environment. By incorporating contingent workers into your business strategy, you improve your bottom line while also contributing to the economy and supporting workers.
Potential Drawbacks
While contingent workforces offer many advantages, there are also some drawbacks to consider. Unlike permanent employees, contractors don’t have job security and may miss a sense of community and belonging in the workplace. They can also struggle to engage with colleagues and find it hard to feel fully part of the company culture.
Additionally, managing the quality of work produced by contingent workers can be a challenge. Contingent workers may not always have the same level of investment in a company as permanent employees, and there may be some differences in their understanding of the company’s objectives and principles.
Balancing the Pros and Cons (with the right solution partner)
As with any business decision, it’s important to weigh the pros and cons of using contingent workers. You should carefully evaluate your needs and determine if contract work is the best solution for your organization.
If you’re from a company that requires a strong, cohesive team focused on the long-term success of the organization, it may be better to hire permanent employees. On the other hand, if your company has ongoing projects that require specialized skills, it may make sense to hire contingent workers to complete the project and then release/redeploy them when the project is finished.
In either case, Prosperix can help. We can help you find permanent employees through our direct sourcing capabilities and make sure you successfully build and manage your contingent workforce with ease. Our MSP/VMS solutions streamline your programs, ensuring the highest-quality talent that aligns with your brand. You’ll get the best of both worlds – top-notch talent at competitive prices and workers who become a valuable part of your team. By sourcing your workers through Prosperix, you empower them not just to be contingent workers, but become Xponential workers who bring immense value to your organization. Partner with us for a more efficient, effective, and engaging contingent workforce.
