There are now many compelling reasons why companies are increasing the number of their ‘non-employee’ workers; i.e. workers who are contractors, temporary, contingent and otherwise non-permanent.
1. at this time of economic instability and uncertainty, resources are needed for major re-structuring and growth but there is a reluctance to commit to permanent staffing. Gartner research shows that 32% of organisations plan to replace permanent workers with contingent for cost saving and flexibility.
2. agility is required to engage the required skills more quickly and at less cost. The ‘agile workforce’ is a hot topic and is defined as one that is engaged and leveraged dynamically, is scalable and delivers the required skills.
Ardent Partners research shows that 69% of organisations have prioritised direct sourcing over the next 2 years to lower ‘hard’ recruitment costs and to improve their time to fill rates.
Gartner research illustrates that differentiating costs are the largest driver of competitive advantage and that people costs are the number one driver of organisational cost.
3. worker lifestyle preferences are having an increasing effect. 10 years ago, 20% of workers were non-permanent and this is now 43% today (Ardent Partners). This was confirmed as 39% in the UK between January and March 2020 before the Covid epidemic struck. Flexibility and mobility are becoming the norm, with 40% of millennials planning to abandon their job to freelance in the next 5 years (USA Today).
4. a changing skill base is being driven by the move to the digital age and there will be many projects established in the near future as businesses look to transform and compete. This may be why 64% of organisations have prioritised Statement of Work and service procurement projects over the next 2 years. (Ardent Partners).
5. this skills issue ties in with Gartner’s findings that there needs to be a fundamental re-think in workforce management planning. The Gartner report of May 2020 stated that talent plans are currently misaligned and need to focus on the skills required to deliver new business models not the roles.
All of these and more are causing organisations to consider a more strategic use of a contingent workforce.
what should the solution deliver?
An ideal solution to address the requirements for the future is one that:
• gives access to a constant supply of the best available talent
• reduces the volume of non-suitable applicants
• provides access and completes the engagement process quicker
• minimises the administrative overhead in terms of time
• retains useful information for future reference
• provides a superior experience for all parties and particularly candidates
• relies on a superior technical solution which is easy to use and comprehensive
• costs as little as possible in both hard overhead recruitment costs and the payment of optimum rates to the workers