Tag Archives: contingent workforce

News, Recruitment News

Demand for contingent spikes as skills shortages drive need for temporary resources

New data reveals that demand for contingent workers has continued to spike amidst growing skills shortages, with 60% of employers expecting to increase contingent hires over the next two years. That’s according to new research from leading background screening and identity services firm, Sterling.

According to the data, which comes from a global survey of more than 1,200 HR professionals and perspectives from more than 3,700 recent job seekers, reliance on the contingent segment of the workforce has already become the new norm, with over half (59%) of employers revealing that all or most of their workforce is made up of contractors, consultants and other forms of temporary workers.

Hiring challenges

The survey also revealed that 46% of businesses have been struggling to find enough qualified candidates to fill positions, while 40% admitted that they were facing hiring complications due to new regulations and new types of work. Only 8% stated that they had no major hiring challenges, which is perhaps unsurprising in light of the widely reported skills endemic across Europe.

This shift in reliance on flexible workers has created concerns around compliance, with 70% of businesses anticipating that hiring regulations and practices will become increasingly complicated over the next two years. However, the data does show that measures to combat potential future challenges have been put in place, with 62% of those surveyed confirming that they have made alterations to their screening process in order to support contingent workers.

Steve Smith, President International at Sterling, commented:

“The results of our survey strongly indicate that demand for the contingent workforce will only intensify as skills shortages continue. And with the UK Government recently issuing new guidance on employment status and employment rights for temporary workers, the complexity of gig worker hiring is only going to be exacerbated. However, while there are a wealth of complexities and nuances around recruiting and employing these individuals, alongside a growing need for quick turnarounds, businesses need to ensure they’re not compromising compliance for speed. Navigating the complex compliance barriers of this segment of the workforce isn’t easy, but those firms that do it well will be the ones that thrive in the new world of work.”

COVID-19, News

Survey reveals impact of Covid-19 on contingent workforce management

The Coronavirus pandemic has led to a complete overhaul of contingent workforce management solutions as HR and procurement teams begin to better collaborate to support the ‘better normal’ workplace. That’s according to global leader in talent acquisition and managed workforce solutions, Guidant Global.

A more joined-up approach to contingent workforces

In its survey of HR and Procurement professionals, Guidant Global found that 37% of respondents had completely reviewed how their business manages its external talent in light of Covid-19, with 26% implementing a more joined up approach to managing their contingent workforce. While this move to greater collaboration is a step in the right direction for what has long been a siloed talent strategy, the results indicated that there is still some room for improvement, with 21% revealing that different divisions had managed their own change.

Budgets and competition biggest challenges

The study – carried out during the recent CWS Summit: North America and the SIG Global Executive Summit – also revealed that budgets and competition for top contingent talent are the biggest challenges facing HR and procurement teams, cited by 47% of respondents.

Given the above challenges, it’s perhaps no surprise that Contingent RPO is high on the priority list for the immediate future, with 58% of participants indicating plans to explore this sourcing route within the next two years. Encouragingly, though, total talent acquisition (TTA) is the biggest focus for HR and procurement as an all-encompassing approach to workforce management creeps up the agenda. While just 21% currently have TTA strategies in place, 72% indicated that they will be exploring this within the next two years.

Simon Blockley, CEO of Guidant Global commented on the results:

“It’s common knowledge that Covid-19 has been a catalyst for new and better contingent workforce solutions. As flexibility becomes the norm for businesses in light of the pandemic and global lockdowns, firms have begun to recognise just how valuable external workforces can be. And with a growing need to streamline costs, transparency of contingent spend has understandably been a focus for both HR and Procurement teams. What is particularly promising from our survey, though, is the move towards a more joined up approach, not just between the divisions that are responsible for the contingent and permanent workforce, but the entire business. The fact that so many respondents are exploring a total talent acquisition approach suggests that the pandemic has pushed businesses towards developing a truly future-proof talent strategy.”