In today's ever-evolving labor market, contingent workers play a pivotal role in the growth and flexibility of businesses. As more companies adopt agile working models, understanding the dynamics of the contingent workforce is crucial. Here are 15 key statistics that every buyer of contingent labor should know, highlighting their implications and strategic importance.
15 Contingent Workforce Statistics you need to know in 2024
- 41% of companies expect to increase their use of Contingent Workers: Nearly half of businesses plan to ramp up their contingent workforce, underlining the shift towards more flexible, project-based employment models.
Source: Deloitte's Global Human Capital Trends Report - 60% of Contingent Workers choose flexible work arrangements voluntarily: This statistic from Gartner emphasizes the importance of providing flexible work options to attract top talent who prefer or require non-traditional work settings.
Source: Gartner's Future of Workforce Analytics Report - Contingent Workforce Makes Up 20-30% of the Labor Force in Developed Economies: This significant portion underscores the need for robust management strategies to integrate these workers seamlessly into existing teams.
Source: OECD Employment Outlook - 72% of HR Managers Use Freelance Platforms to Source Talent: The rise of digital talent platforms is reshaping how companies find and engage contingent workers, suggesting that traditional sourcing methods are being supplemented or replaced.
Source: LinkedIn's Future of Recruiting Study - $4.5 Billion is Spent Annually on Vendor Management Systems (VMS): Investing in VMS technology not only supports the efficient management of contingent labor but also provides analytics to optimize spending and performance.
Source: Staffing Industry Analysts' VMS Market Developments Report - 35% of Contingent Workers Are Employed in Professional Services: Knowing which sectors employ contingent workers can help buyers tailor their recruitment strategies and manage compliance risks more effectively.
Source: U.S. Bureau of Labor Statistics - 25% of Contingent Workers Consider Health Benefits a Key Factor in Job Selection: Offering competitive benefits, even to non-permanent staff, can be a differentiator in attracting and retaining skilled contingent workers.
Source: Randstad's Employer Brand Research - Contingent workers contribute 15% to total workforce productivity: This significant contribution to productivity highlights the importance of contingent workers in achieving business goals and sustaining competitive advantage.
Source: McKinsey Global Institute Analysis - The Average Tenure of a Contingent Worker Is 13 Months: Understanding the average engagement length helps plan project timelines and knowledge transfer processes.
Source: ADP Workforce Vitality Report - 90% of Corporations Cite Flexibility as the Key Benefit of Hiring Contingent Workers: Flexibility in hiring and workforce management is crucial for adapting to market changes and project-specific demands.
Source: ManpowerGroup's Annual Talent Shortage Survey - AI in Contingent Workforce Management is Growing by 25% Annually: AI tools are essential for optimizing workforce planning and operational efficiency in real-time.
Source: Forrester's Future of Work Report - Contingent Workforce Penetration Rate is Expected to Grow by 30% by 2028 : This forecast suggests that businesses need to prepare for a larger contingent workforce, which requires enhanced scalability in their workforce management systems.
Source: Mercer's Global Talent Trends Study - 40% of Millennials Prefer Contingent Work Arrangements: Catering to the preferences of younger generations will be key in harnessing their potential and meeting their expectations for flexibility and diversity in work experiences.
Source: Pew Research Center Study on Millennial Employment Preferences - 78% of Business Leaders Believe Freelancers Give Them a Competitive Edge: This perception indicates the strategic value of contingent workers in fostering innovation, speeding up project delivery, and providing specialized skills that might not be available in-house.
Source: Harvard Business Review Analytic Services Survey - 83% of Executives Report Increased Reliance on Contingent Workers for Strategic Thinking and Specialized Skills: It’s not just about filling gaps; contingent workers are increasingly considered crucial contributors to strategic initiatives.
Source: Ernst & Young's Contingent Workforce Study
Why These Statistics Matter
The data clearly show that contingent workers are not just a temporary fix but a long-term strategic component of the workforce. Understanding these trends allows buyers to plan more effectively, ensuring they have the right skills available when needed and can respond quickly to market dynamics.
- Cost Management and Efficiency: Companies can better manage budgets and project costs by understanding the economic impact and cost benefits of hiring contingent workers. Tools like VMS can optimize expenditures and improve oversight and control.
- Talent Acquisition and Management: As the talent pool evolves, so must acquisition strategies. The statistics highlight the need for flexibility and modern technologies to attract top talent.
- Risk Management: With a significant portion of the workforce contingent, compliance with labor laws and internal policies becomes more complex but crucial. Proper management systems help mitigate these risks.
- Future-Proofing the Workforce: The growing reliance on contingent labor necessitates a proactive approach to workforce planning. This involves adapting to current trends and anticipating future changes in the workforce structure.
In conclusion, these statistics aren't just numbers—they are insights that can drive smarter, more strategic decisions about how companies engage and manage their contingent workforce to harness its full potential.
The Conexis Difference
At Conexis, we've built a sophisticated VMS software solution that’s easy to use. We’ve removed the complex functionalities and features of the traditional VMS providers and only included the components that you truly need. That means we’re able to stand up our out of the box VMS system for your organization in as little as a few weeks.
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