In today’s fiercely competitive business environment, companies are constantly striving to be ahead of the pack and retain that edge over their rivals. One of the keys to this is achieving maximum efficiency with the resources that a company possesses, a major part of which is the workforce.
The current job market is highly volatile and candidate-driven, and issues such as arbitrary attrition and manpower shortages pose a constant challenge, affecting business outcomes and profitability. In such a scenario, having a contingent workforce on hand could be the ideal solution. According to the Oxford Economy’s Workforce 2020’s survey, 83% of executives worldwide use contingent and seasonal workers.
What Is A Contingent Workforce?
A contingent workforce, alternatively known as an external workforce, a flexible workforce, or an extended workforce, consists of people who are hired for a finite period of time. They can be hired directly by an organization or through a staffing agency. These individuals work on a temporary or contractual basis and are employed to supplement the existing workforce. This arrangement offers a great deal of flexibility to both companies and workers, along with a number of other benefits.
Contingent workers are available in a variety of roles. They can consist of seasonal hires and interns, customer service representatives, or people in creative roles such as writing or graphic design. They could be experts with highly technical skills, like IT personnel or information security professionals. They may also include product managers, project managers, or interim managers who are hired for the purpose of leading teams and projects.
Contingent workers can be hired for varying periods of time lasting from a few hours to a few years. They can work remotely or on-site, as required by the company hiring them.
What Are The Advantages Of A Contingent Workforce?
1. Cost Savings
One of the most significant benefits of hiring contingent workers is financial. Since they are not fulltime employees, it saves the company in terms of fixed costs such as benefits, overtime, vacation pay etc. Additionally, it allows businesses to hire talent on an as-required basis, which is very cost-effective.
Companies have the advantage of access to people with specialized skills on demand, rather than having to pay for this expertise year-round. When it comes to recruitment, many of the expenses incurred when hiring permanent employees can be reduced while hiring temporary workers. With a contingent workforce, enterprises also have the option of cutting back on labor costs more easily during business fluctuations.
2. Speed of Hiring
We know that hiring needs increase as a business expands, but the process of acquiring quality talent is easier said than done. According to a report by SHRM, it takes approximately 36-42 days to complete the process of hiring a fulltime employee and successfully filling a position. This can pose organizational problems if there is an urgent need for specialized talent.
However, the speed of hiring and filling openings is much faster when it comes to a contingent workforce. They already have the requisite skills, making the selection process simpler and quicker. Also, since they are not being considered for long-term positions, it’s easier for the hiring manager to make a fast decision. Contingent workers can join right away and start contributing from day one without expending valuable time on onboarding and training.
Today’s volatile economic and business environment ensures that companies are consistently faced with fluctuations in labor demand in different markets or sectors. A contingent workforce can be hugely beneficial here.
Since temporary workers are hired on an as-needed basis, companies do not need to be concerned about being tied to them beyond the short-term requirement. When there is a surge in work volume, companies can opt for contingent workers according to the current business requirement. When there is a slump, there is no requirement for formal lay-offs. In contrast, terminating employment of full-time or permanent staff can prove expensive for the employer as well as being traumatic for employees.
4. Filling Skill Gaps
A successful business needs constant accessibility to a wide variety of specialized skills that can vary from project to project. But maintaining a permanent workforce comprised of experts in all areas is quite a challenge for most companies. Having a contingent workforce is a strategic way to fill in any skill gaps across an organization.
A contingent workforce is made up of highly talented workers all with their own specific experience and skill sets. Their expertise can come in handy where it is needed for a short period, helping companies to supplement their internal talent while saving on costs as well. Certain skill sets are expensive and scarce, and it may not be feasible for a company to hire these experts on a full-time basis. By hiring on a project-by-project basis, businesses are able to bridge the gaps and ensure they have sustained access to niche expertise.
The benefits of a contingent workforce are manifold, whether a company is looking for a boost in casual manpower to manage periodical business surges, or for specialized temps for critical projects. At Employvision, one of the top recruitment agencies in USA with over 15 years of proven track record in recruiting top technology talent, we fully understand the value a contingent workforce can bring to your organization. Our expert recruiting team is always ready to provide you with outstanding Talent Acquisition and Management solutions. We help reduce your recruiting cycle time while improving your candidate experience and retention.
Contact Employvision and start hiring the best IT talent today!