In the coming years, the contingent workforce is poised for a significant expansion. Despite a major setback during the COVID-19 pandemic, the market has rebounded and is projected to grow substantially, as indicated by an analysis from Eightfold.ai. Let's delve into the anticipated changes over the next three years:
- Global contingent workforce participation: 34% increase
- U.S. contingent workforce participation: 16% increase
- Global contingent workforce participation: 25% increase
- U.S. contingent workforce participation: 14% increase
- Global contingent workforce participation: 20% increase
- U.S. contingent workforce participation: 16% increase
In the face of this shifting landscape, the role of Managed Service Providers (MSPs) becomes paramount. As the complexity of worker types and regulations continues to rise alongside the surge in contingent labor utilization, MSPs are primed to play a pivotal role. These third-party entities specialize in managing temporary worker recruitment and contingent talent, offering an appealing option for organizations seeking to outsource contingent workforce management.
MSPs bring a host of benefits to organizations:
- Enhancement of the bottom line
- Reduction of workforce costs
- Amplification of business agility and flexibility
- Facilitation of informed hiring decisions
- Seamless scalability of the workforce
- Provision of timely access to the right talent
- Optimization of talent acquisition and management expenditures
However, to deliver on these promises and meet evolving client demands, MSPs must adapt to a swiftly changing landscape. Here are some key considerations:
- Technological Integration: Incorporating new platforms and technologies is imperative. Emerging technologies are revolutionizing talent acquisition through avenues like direct sourcing, freelancing, and talent pools. Collaborating with both established and emerging platforms empowers clients with diverse channels to discover suitable workers.
- Holistic Talent Ecosystem: The future of work lies in a multi-channel approach. MSPs need to evolve their models, converging all channels into a unified talent ecosystem. Swiftly implementing this approach will result in an enhanced talent experience for clients.
- Simplified Client Experience: Balancing automation with operational excellence is crucial. Tailor experiences for diverse user groups – from high-touch users to savvy managers. Automation coupled with strategic operational insights enhances program differentiation and client satisfaction.
- Strategic Client Shift: Clients must embrace a paradigm shift. Embedding the contingent workforce within their overall talent strategy is paramount. Prioritizing contingent workforce strategy, especially at senior levels, is pivotal for shedding outdated practices.
- Consultative Support: Clients require comprehensive guidance. Seasoned contingent workforce experts benefit from external counsel to validate concepts and gain holistic perspectives. A neutral voice aids in navigating the intricacies of the contingent workforce ecosystem.
As the contingent workforce landscape evolves, MSPs must align their strategies to meet the forthcoming challenges and opportunities. The next three years will be transformative, and MSPs that adapt and prioritize proactive measures will lead the industry. The time is now for MSPs to reassess their priorities and shape their path to success in the dynamic landscape that lies ahead.
