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Contingent workers are outsourced, non-permanent workers that are commonly referred to as Independent Contractors, contract workers, freelancers, gig workers, consultants, temporary talent or remote workers. They are engaged by an employer on a short-term, long term or on a project-by-project basis.
A contingent worker can work on site or remote; however, when the their contract is at an end or the project for which the contingent worker was hired for is complete, the employer has no responsibility to provide continuous work to that worker on a permanent basis – they are not on staff.
Contingent workforce management is a complex employer responsibility that requires organizations to design, plan and implement a program that aligns their contingent workforce strategy with their overall workforce strategy in order to reach business objectives.
The COVID-19 pandemic universally changed the world overnight, and determining how it will continue to change the world of work is an uncertain if not daunting task as an estimated 2.7 billion people (or four out of five workers) have been affected on a global scale.
Months ago, an organization's first priority was crisis response mode, yet as the world slowly begins to emerge from from the response phase, employers are shifting focus on the next set of workforce challenges they will face as they continue on the path towards whatever the 'new normal' may be.
For many organizations across the globe, this means augmenting traditional employment models with a more flexible and responsive one: A contingent workforce.
Total Workforce Management or Total Talent Management, is an emerging workforce strategy that gives employers the ability to make better data-driven decisions about which type of resource is most appropriate for their business needs. A Total Workforce Management System integrates both an organization's full-time and contingent workforce, breaking the traditional barriers between permanent and non-permanent workers.
Organizations today rely on many types of talent well beyond the traditional employee to meet their business objectives - from contingent workers to SOW consultants to freelancers and more. As employers continue to invest in contingent talent, it's estimated that nearly half of the average company's workforce will consist of non-permanent workers in 2020.
Furthermore, as a result of the COVID-19 pandemic, a recent study conducted by Gartner revealed that 32 per cent of organizations are replacing traditional employees with temporary talent as a cost-saving measure.
As a result, employers can no longer manage their traditional and contingent workforces in silos.