Delivering flexibility and much-needed skills, this segment has shown its true value over the last 24 months.
By Debbie Bolla
The uncertain times and economy of the last two years have increased organizational reliance on contingent workers due to their flexibility and specialized skill sets. Ardent Partners’ State of Contingent Workforce Management 2021 research study found 94% of business leaders report that their agile or extended workforce is a critical and strategic facet of their organization. Non-employee workers make up 47% of an organization’s total workforce on average. This is up from 43.5% in 2020. The report says this is being driven by the scalability and agility the contingent model offers. In fact, organizations will likely have an increased need for contingent workers, as reported by 82% of respondents.
Other key findings include:
Digital transformation has become a priority for HR, TA, and procurement leaders. According to the study, 70% of respondents saw an increased reliance on workforce management technology, including human resources information systems (HRIS), vendor management systems (VMS), and extended workforce platforms. VMSs have long enabled organizations to manage end-to-end contingent labor processes, including sourcing, services procurement, and invoicing. The research shows that best-in-class organizations are 96% more likely than all others to utilize VMS technology. Today’s organizations are relying on HR technology to improve engagement with talent, oversee workforce management, and maintain flexibility and agility.
Managed service program (MSP) providers remain a critical piece to managing contingent labor. The report finds MSPs help with the day-to-day management of contingent labor, including acquiring workers, services procurement, direct sourcing, and staffing supplier optimization. Best-in-class organizations are 66% more likely to leverage MSPs than others.
The use of direct sourcing for contingent labor attraction and management continues to increase. The report found that nearly 75% of best-in-class organizations have a direct sourcing program in place. This shows the continued evolution of how organizations manage contingent workers. With direct sourcing, organizations leverage many attraction approaches traditionally used for full-time employees in order to build talent pools and direct relationships with contingent workers. This helps convert temp workers to perm as well as enable future contracts with specialized talent.
