The Contingent Workforce, Where Is It Headed?

Posted by Tracy Loetz on May 12, 2015 2:31 PM

 

As we look into the future, we look at the past.  The use of a contract or contingent workforce was extremely light in the early 1980s and decades before that. Business and workforce needs were more predictable, you know...employment for life, along with low levels of automation and computerization requiring a physical workforce.

As business cycles became more varied along with increased use of computers and robotics, resource needs became more varied.  In the late 1980s and particularly the 1990s a contingent workforce became more appealing. Reasons why contingent resources became popular, and remain so today, include supplementing current staff, acquiring expertise not available on staff, to get a fresh approach or different perspective on a problem, to acquire experience from different companies in your industry or cross industry experience, to do the repetitive/complex task that no one else wants to do, to off load work (outsourcing or managed services) which enable staff to concentrate on core competencies, vacation/expertise/cross trained backups, try before you buy contract to hire, and so on.

So with a look at the past and present, what does the future hold?

TrainingMuch of the research indicates that contingent staffing and use of consultants will increase. In a Forbes article titled "The Rise Of The Contingent Worker", a study conducted by Oxford Economics and sponsored by SAP, 83% of executives indicate they’re increasingly using contingent workers ‒ at any time, on an ongoing basis.

The reasons for using a contingent workforce remain the same, with two additions. 1) The speed, or lack of speed, to hire a full-time employee.  It takes an extraordinary length of time to fill an open position, and business must go on.  Companies need to fill the skill gap quickly and using a contingent worker is a perfect fit. 2) The uncertainty and unanswered questions regarding the Affordable Care Act (ACA) and what it will mean to companies.  

While I did not find statistics specifically for the integration and EDI fields, I did find expected growth rates for contract or temporary workers in the Information Technology industry.  Several studies show the rate to be 17-19% between now and 2019.  

At Remedi, we've had an increase in calls from companies that have lost their one and only EDI support person and need an expert quickly.  These companies want a temporary consultant while they decide how to move forward, either through hiring another full-time employee, a managed services arrangement, or outsourcing their EDI solution.