Contingent Worker Hiring Trends to Expect in

2023

From the recruitment and workforce point of view, the year 2022 was very happening. As the
world managed to survive COVID-19 and tried to enjoy normalcy by calling the workforce to
office, the era of ‘Great Resignation’ started. We get to see many interesting resignations
happening around us.

These changes affected contingent workers as well. The contingent workforce, which includes
independent contractors, freelancers, temporary workers, and consultants, made up a great
workforce section and is delivering great skills.

As the year 2022 will end very soon, it’s important to learn about contingent worker trends for
2023 if you wish to experience seamless workforce labor management. This post throws light on
this topic only.

Contingent Workforce - The Future Is Bright

A contingent workforce makes up a huge part of the global workforce. In the US alone, there are
nearly 51.5 million registered contingent workers that are hired by managed IT services
companies, enterprises, and businesses of all sorts.

As this workforce delivery method brings tons of benefits to the business, its expansion is
obvious. Its growth started after the Great Recession of 2007 and continues.

Seeing the deeper penetration of contingent, we can easily call it a mainstream workforce
delivery method. To conclude, the contingent workforce is no longer associated with just “non-
core” business functions. Rather, the contingent workforce is also associated with highly-skilled
employees that can provide value to multiple areas of a business.

Here are a few stats to back out statements.

● The average contingent workforce growth is likely to be 29 percent by 2030.

(Source: Staffing Industry Analysts).

● Randstad confirmed there is a nearly 20% hike in demand for a contingent workforce in
the year 2021. (Source- Randstad).

● As per US Government Accountability Office, the contingent workforce is likely to be

nearly 50% of the total US workforce by 2050.

● The key reason behind shifting to a contingent workforce is its cost-effectiveness, as

32% of employers feel that it is a great way to hire desired skills at an affordable cost.
(Source: Gartner).

The above statistics ensure that Contingent workforce hiring certainly has a bright future, and
this domain is very less likely to experience any slowdown.

Contingent Worker Hiring Trends For 2023

If you’re someone who has already shifted to contingent worker hiring or planning to do it
shortly, being aware of the industry trends is a great move to make. Here are some attention-
worthy trends that are likely to shape contingent worker hiring in the future.

● Hiring going global

Earlier, workforce hiring was limited to local candidates that could be available for the job
immediately. However, this behavior is slowly changing. Unless it’s purely field work, companies
are now willing to hire global talent. Those who are looking for budget-friendly talent are hiring
from Asian countries like China and India.

In fact, India is one of the top preferences for hiring a contingent IT workforce.

With the use of video conferencing tools and advanced technology, going global and hiring
talent beyond the boundary is possible, and the trend is on the rise.
 ● Great Resignation will continue to impact this domain

The era of the Great Resignation has impacted the global workforce, and the contingent
workforce is no exception. But, it has caused positive outcomes in this field. Organizations
realize that it’s hard to please regular employees.

Even if organizations are not allowing work from the office and calling back their workforce,
employees prefer remote work. This way, organizations have high workforce overheads.

No matter how much effort is made, it’s not easy to retain regular employees. They seek a
contingent workforce as a viable option as it then gets the job done without being worried about
benefits and perks.

● Deeper penetration of vendor management software

As more and more organizations engage contingent workers, there is a boosted need for
feature-rich VMS or vendor management software. It’s an easy way to manage the contingent
workforce, gain visibility in the key operations, and optimize the ROI.

As per Staffing Industry Analysts, nearly 76% of companies have managed to save huge
operational costs with VMS. It’s easy to achieve constant communication with a dispersed
workforce.

● MSPs are going to be the first choice for hiring quality contingent workers

As the importance of contingent workers grows, companies don’t want to take any risks. They
want quality, apt skills, and commendable skills in the contingent worker as well.

Even though gig marketplaces like Freelancer, Fiverr, and Upwork are quality-oriented,
businesses often don’t take their help as there is no guarantee of hiring talent. Hence, they take
the help of MSPs or Managed Service Providers that endow them with seasoned talent with an
assured guarantee. MSPs also provide an all-inclusive solution. So, if you need an upgraded
skill set, you can easily do that.

Concluding Words
Great Resignations, reduced operational costs, easy skill updates, and global talent pools are
key reasons that allow organizations to switch to the workforce labor management. As you
make a move in this direction, don’t forget to update yourself with the driving trends of this
domain that we just shared. With these, you will have the best talent by your side.