How does contingent workforce help companies in 2022?

Finding the optimal talent for open positions to implement crucial projects is becoming an increasingly harder task for companies across the world now. The uncertainties in the job market demands, supply chain situation, and especially the pandemic situation have made companies alter their approach towards their conventional talent acquisition strategies. To decide the ideal blend of talent types in any organization or project, organizational leaders should begin with a comprehensive investigation and analysis of the differences between each labor type. It is critical to understand how a contingent labor force can accelerate the business project execution and implementation processes with high agility and flexibility.

What are contract employees or contingent workers?

Contract workers or the more common nomenclature used today, contingent workers, are individuals who work for a client organization, often through a contingent staffing agency for a defined duration. There are many reasons why employers decide to utilize contingent workers, the major one being, to manage peak demand. This sudden influx of manpower necessity can only be fulfilled by hiring contingent workers wherein the hiring process of full-time employee teams can cost lots of time and cost. Due to many other challenging circumstances, business enterprises might confront the requirements of urgent workforces to perform critical projects where sophisticated skillsets are mandatory. For example, if an apparel company acquired a new business, they will require ERP consultants to integrate the internal systems to streamline processes. This can be done by expert analysts who have deep implementation experience in such projects. And the company doesn’t need to hire them as permanent employees. Equally, companies may have a new software being deployed, this temporary surge in demand could therefore be addressed with a contingent workforce.

Full-time employees are typically people who are employed directly with the company where the worker works for 40 hours, the employee gets benefits from the company and the company controls the work that the worker does. In the US, if you rely on a company to provide you with a W2 (Wage and Tax Statement) form, then you are an employee of that company.

How does contingent labor force benefit companies?

Unprecedented staff shortages can affect a company adversely and can result in delays in important projects. In such situations, contingent workforces are the best solution to resume projects and hasten the processes. A contingent workforce can help mitigate talent gaps and skillset scarcity by providing their professional skills acquired throughout their career with diverse work experiences. Flexibility towards critical projects is also a very important factor. A contingent workforce can adapt to the work environment very quickly given their experience working with many companies. Lastly, a contingent workforce can provide a form of risk mitigation for companies as the worker is not legally your employee.  All these factors prove how adding a contingent labor force to your labor mix and strategies will benefit a company in multiple ways.

Bottomline

According to a U.S. Government Accountability report, 40% of the total workforce in the USA is made up of contingent workers, with the average organization having 18 percent of its workforce employed on a contingent basis. Considering all the advantages of a contingent workforce, companies can decide the requirement of such manpower to be part of their labor mix. Bearing this necessity of businesses in mind, Denken Solutions is focusing strongly on finding talents for every job position required by our customers. By ensuring different layers of quality assurance and qualification verifications of candidates, we are proud to submit professionally skilled candidates to our clients to help them with their workforce needs. Partner with us and let us help you in turning your open positions into filled positions with the right individuals.