Using flexible staffing strategies such as contract or contingent workers has been on the rise worldwide and shows no signs of stopping. The term ‘contingent employment’ generally refers to an employment relationship that is non-permanent. According to Deloitte organisations have seen such an increase in contingent workers that they may represent a larger percentage of the workforce than permanent employees. Why are flexible staffing strategies continuing to grow in prominence, and why now?
If we look at this from both the aspect of the hiring organisation and the skilled worker we find that there is a remarkable supply and demand exchange which is simultaneously satisfying for both parties.
For businesses, flexible workforce strategies are the fastest and most effective way to keep up with exponential business growth or unexpected business changes. Although the shift towards flexible staffing strategies was already underway the pandemic has added fuel to this. At the beginning of the pandemic there was the immediate need to flex resources up or down, or possibly both in tandem. And now with prolonged periods of disruption and uncertainty and the economy in constant flux it seems more and more businesses are turning to these methods to be able to react to changes in their surroundings.
Concurrently the skilled workforce has new expectations in relation to their work life balance and their careers. Millennials, who are currently between 25 and 40 years old and making up a large proportion of the tech skills market, are looking for exciting careers which gives them the option to progress and try new things as well as provide meaningful work. According to Deloitte, by 2025, Millennials will account for 75% of the global labour force. When asked what would help a job be more fulfilling, 87% of Millennials said higher pay (Forbes). In search of this higher pay and meaningful work Millennials are more open to more frequent job changes and shorter term contracts.
Gen Zs who currently make up about 24% of the workforce are expected to work 18 jobs in their lifetime spanning six careers (www.ecemgroup.org), which is far cry from the traditional life time loyalty to an employer or “a job for life”. Gen Z workers are very aware of the way workforce needs are changing — 62% believe technical hard skills are changing faster than ever and 59% don’t think their job will exist in the same form 20 years from now (Linkedin).
It has also been found that those reaching retirement age are choosing to remain in the workforce as freelancers or independent consultants (Employee Benefit Research Institute).
With this in mind and considering the challenges that currently exist in the labour market to attract and retain top talent it is wise to consider flexible staffing strategies as a resourcing option. As Charles Darwin said “it is not the most intellectual of the species that survives; it is not the strongest that survives; but the species that survives is the one that is able to adapt to and to adjust best to the changing environment in which it finds itself”.
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