In 2024, the outlook for contingent work remains promising as more job candidates embrace the flexibility and opportunities it offers. A recent study conducted by the American Staffing Association revealed that eight in ten job candidates foresee working for a new company in the next 12 months. This shift indicates a growing openness to contract labor and project-based work as viable employment options.

Additional data tells us the future of contingent work is bright:

• A report by the U.S. Government Accountability Office states that 40% of the U.S. workforce consists of contingent workers, with the average organization employing 18% of its workforce on a contingent basis.
• Projections indicate that by 2050, freelance or contingent workers will make up 50% of the U.S. workforce.
• The trend of increasing contingent labor is global. An Oxford Economics survey found that 83% of executives have reported a rise in the use of contingent labor to achieve business goals.

Shifting Employment Expectations

As workforce dynamics continue to evolve, job-seekers are adjusting their employment expectations. Full-time job opportunities may not be as abundant as they once were, but the demand for contingent labor is on the rise. Workforce experts predict that companies will increasingly adopt contingent labor and project-based work to meet their evolving needs.

The Growing Prevalence of Contingent Labor

According to the U.S. Bureau of Labor Statistics, approximately 80% of employers use contingent labor, and this number is expected to grow in the coming years. Job consultants, freelancers, and independent contractors offer immense value to organizations by providing flexibility and versatility to address urgent business needs. Additionally, organizations are recognizing the cost-saving benefits of utilizing contingent workers in place of full-time employees.

Benefits of Contingent Labor

Contingent labor offers numerous advantages to both employers and employees:

• Flexibility: Employers can quickly scale their workforce up or down based on project demands.
• Cost Savings: Organizations save on costs associated with full-time employment, such as benefits and long-term commitments.
• Access to Specialized Skills: Contingent workers often bring niche skills and expertise that might not be available within the existing workforce.
• Speed to Market: Projects can be executed more rapidly with the availability of skilled contingent workers.

Challenges and Considerations

While contingent labor presents many benefits, it also comes with challenges that organizations need to address:

• Integration: Ensuring that contingent workers feel included and valued within the team can be difficult.
• Compliance: Managing legal and regulatory requirements for contingent workers can be complex . Make sure you have a strong contingent labor partner that can advise of you new laws and regulations.
• Quality Control: Maintaining consistent work quality and productivity among contingent workers requires effective management and oversight.

Best Practices for Leveraging Contingent Labor

To maximize the benefits of contingent labor, organizations should consider the following best practices:

• Strategic Planning: Develop a clear strategy for integrating contingent workers into your workforce.
• Effective Onboarding: Provide thorough onboarding and training to ensure contingent workers understand your organization’s culture and expectations.
• Continuous Communication: Maintain open lines of communication with contingent workers to address any issues and keep them engaged.
• Performance Management: Implement systems to monitor and evaluate the performance of contingent workers regularly. Your contingent labor partner will be able to help you with performance management.

If your organization is looking to supplement its workforce, consider leveraging contingent labor. This approach not only expands your pool of talented resources but also supports qualified workers and their families. Contingent labor presents a unique “win-win” scenario for employers and employees, highlighting the promising future of the workplace in 2024.

As the landscape of work continues to evolve, partnering with the right staffing solutions provider is crucial. At Acara, we specialize in sourcing and filling contingent labor needs to help your organization stay agile and competitive. Whether you need skilled freelancers, project-based workers, or long-term contractors, our expert team is here to support you every step of the way.