How is Contingent staffing changing the dynamics of enterprises?

In the latest iteration of McKinsey’s American Opportunity Survey (AOS), a remarkable 36 percent of employed respondents—equivalent to 58 million Americans when extrapolated from the representative sample—identify as independent workers (contingent workers). This figure represents a notable increase since we estimated the US independent workforce in 2016 to be 27 percent of the employed population.

Who is a contingent worker?

Contractors, freelancers, consultant workers and part-time workers are all considered to be the contingent workforce. Unlike traditional full-time employees, these workers are hired on a temporary basis, often for specific projects or periods. This model allows companies to scale their workforce up or down based on demand, bringing in the right talent precisely when needed.

How can a contingent workforce scale your organization's operations?

Contingent staffing offers numerous benefits such as flexibility, time-saving, and access to the right skilled talent. Utilizing contingent talent allows the organization to avoid the overhead costs associated with permanent hires, particularly when the workload is temporary. Below are the benefits of hiring contingent workers:

Flexibility?

A technology startup launching a new app hires freelance developers to handle the intensive development phase. Once the app is launched and the development workload decreases, the company reduces its team, maintaining only essential personnel for updates and maintenance. With contingent talent in your organization, it would not be a complex operation to scale down your workforce.?

Cost efficiency

A retail company hires temporary workers during the holiday season to manage the increased customer traffic, saving on the costs of long-term employment while effectively handling the seasonal surge.

This shows contingent staffing can lead to substantial cost savings. Full-time employees come with various overhead costs, including salaries, benefits, insurance, and office space. In contrast, contingent workers are typically compensated on an hourly or project basis without the additional benefits costs. This model is financially beneficial for companies, especially small businesses or startups operating on tight budgets.

Also read : Top 9 interesting contingent workforce trends to watch for

Access to the right skilled talent

The contingent workforce brings a wealth of specialized skills and expertise that might not be available in-house. This is particularly valuable for industries that require niche skills or when tackling unique projects. For instance, a healthcare organization might need a consultant with specific expertise in implementing new health information systems. Hiring contingent workers allows the organization to leverage this expertise without the need for a permanent hire, ensuring the project is completed efficiently and effectively.

The conclusion

Need a talented team but only for a specific project?? Contingent workers are like the ultimate freelancers for businesses. When you hire contractual workers, they will offer flexibility, so you can adjust your team size as needed. Plus, you only pay for the skills you need, which can save money compared to hiring full-time employees. When it comes to finding the right person for the job, contingent workers can bring fresh ideas and expertise to the table. They're a great option to fill temporary needs without breaking the bank.

Hire contingent workers with Denken Solutions

Looking to fill key positions with talented contingent workers? Denken Solutions can help. We specialize in finding qualified professionals across various fields, from customer service and finance to engineering and IT. Our staffing services ensure you have the right people in place to drive your business forward, without hindering your growth potential. Are you ready with your job requirements? Fill in the form here to hire contractual workers with Denken Solutions!