Jan 25, 2023 4:16:27 PM | 3 Min Read

Shift to Contingent Labor

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Shift to Contingent Labor

It is becoming harder and harder to find employees to fill positions with workforce levels down.  Companies rely on temporary workers to fill jobs while recovering from the pandemic.  Along with temporary employment, many companies depend on the new talent model and management strategies to come out of the pandemic more flexible and resilient.

Industries Affected

While some industries have seen a decline in the number of reqs open since the pandemic, some industries have seen a significant increase.  Healthcare, e-commerce, food processing, manufacturing, logistics, and distribution have seen increased demand for workers post-pandemic.  These industries are relying on temporary workers to fill the open slots.

Impact of Remote Work

Organizations were forced to shift to remote work as much as possible during COVID-19.  81% of companies asked their temporary workers to work remotely during the pandemic.  64% of recruiting firms agree that remote work isn't going anywhere anytime soon.  Additionally, most firms agree that contactless recruiting will be the new norm. (HRO Today).

Remote work has increased the size of the available talent pool for employers.  Now, it doesn't matter where the job is "located" if you can work remotely, you can hire someone from a completely different state or even country!  

The New Talent Model

If companies want to stay competitive in the shift towards contingent workers, they must consider different sourcing strategies.  This includes direct placement and VMS (Vendor Management Systems).  

While all of this change is great, companies need to consider that they may not be meeting their employees face to face.  This means that they may have a risk involved with moving from the traditional location-based contingent talent pools.  Companies need to have cybersecurity measures to protect their personal information, databases, and all property.  Additionally, they need to put into practice onboarding strategies to remote employees to combat the trending high turnover rates.

In brief, employers will continue to rely on contingent labor to fill the vacant positions due to the uncertainty of future demand.  

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Topics: Staffing, Labor Market

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