Diversity is not only the buzzword in corporate hiring policies. It also describes “types” of employees. Contractors, contingency employees, free-lancers, outsourced, and temporary staffers comprise this growing segment of the workforce. Some recruiters even differentiate among the “types” of temporary workers.
In a white paper published on the Hire Dynamics website, “Strategic Staffing,” which is a mix of temporary and full-time employees, provides companies new tactics to gain a competitive edge. Contingency workers are hired forshort-term or on a per project basis while contract staffing brings in experts in a given function, such as managers or executives requiring specialized skills. According to Hire Dynamics, contract workers comprise the fastest growing sector of the temporary workforce.
Randstad validates this trend in its “2012 Workforce 360 Report,” stating 67 percent of today’s organizations utilize contingency workers in some capacity. The survey does not distinguish among types of temporary staff, but uses the words “out-sourced,” “contractors,” and “contingent” intermittently throughout the report.
In the May 2013 newsletter issue of Trendline, published by DCR Workforce, the temporary workforce population during this year’s first quarter increased at a rate of approximately 18.4k per month. From Q1 2012 to Q1 2013, the national temp workforce increased 158.8k.
What are the reasons for this growth spurt in hiring contract employees? Obviously, companies have to cut costs in order to grow and profit. Costs for employee healthcare and retirement benefits have skyrocketed. Uncertainty in the global economy makes corporate planning difficult as companies must prepare for the unexpected twists and turns of today’s financial markets. No longer can an employee expect to stay at one company for more than 5 years. With rapid changes in the economy, an employee is always in fear of being laid off and having to hit the job search pavement.
As a result of these reasons and more, many workers are deciding there is more security in working for oneself. And, with companies realizing the talent available in the temporary workforce pool, hiring contractors is a win-win proposition