The rise of the contingent workforce (case study) The nature of employment is changing. Over 80% of executives surveyed by Oxford Economics say they are increasingly using contingent employees—non-payroll personnel including intermittent and seasonal employees, consultants, freelancers, and part-timers. The trend is global and cuts across industries. Managing these contingent workers effectively requires companies to make major updates to technology, training, and culture—and the degree of difficulty is likely to increase as lawmakers and regulators around the world sharpen their focus on the issue. Yet our survey of over 2,700 executives in 27 countries shows that most companies are struggling to keep up with the transformational changes to traditional work arrangements that are already underway. Just 42% of executives say the influx of contingent workers is having an impact on their workforce strategies—roughly half the number who say they are using more of these workers. The rise of the non-payroll worker promises businesses greater agility, access to talent, and cost control, but the challenges are large as well. Ultimately, the rise of the contingent workforce will require companies to reassess core assumptions about what they value most in workers and how to achieve their workforce goals. Executives say they place a premium on employee engagement, loyalty, and long-term commitment, but engendering these qualities in contingent workers requires fresh thinking. For leaders already falling behind in other areas (see our think piece “The Leadership Cliff”), integrating the contingent workforce represents a signficant hurdle to developing a successful talent strategy. Conclusion As economic, social, and technological changes continue to remake the world of work, the nature of employment is shifting. More and more companies are relying on contingent employees, forcing executives to meet the particular needs of these workers and the challenges of deploying them across successful businesses. And as governments continue to take notice of the trend, companies face even more hurdles. Executives must recognize that the rise of the non-payroll workforce represents a major business transformation, and be prepared to invest in the technology and training required to support new ways of working. They must also understand that company culture has to adapt in order to accommodate contingent workers, demanding new approaches to the traditional employment relationship—and new ways of managing all kinds of employees. What are the pros and cons of a contingent workforce? How should companies maximize the contingent worker? Describe when a contingent workforce 'make sense' and when it does not. Explain your answer.
The rise of the contingent workforce (case study)
The nature of employment is changing. Over 80% of executives surveyed by Oxford Economics say they
are increasingly using contingent employees—non-payroll personnel including intermittent and seasonal
employees, consultants, freelancers, and part-timers. The trend is global and cuts across industries.
Managing these contingent workers effectively requires
companies to make major updates to technology, training,
and culture—and the degree of difficulty is likely to increase
as lawmakers and regulators around the world sharpen their
focus on the issue. Yet our survey of over 2,700 executives
in 27 countries shows that most companies are struggling
to keep up with the transformational changes to traditional
work arrangements that are already underway. Just 42% of
executives say the influx of contingent workers is having an
impact on their workforce strategies—roughly half the number
who say they are using more of these workers.
The rise of the non-payroll worker promises businesses greater
agility, access to talent, and cost control, but the challenges are
large as well. Ultimately, the rise of the contingent workforce will
require companies to reassess core assumptions about what they
value most in workers and how to achieve their workforce goals.
Executives say they place a premium on employee engagement,
loyalty, and long-term commitment, but engendering these
qualities in contingent workers requires fresh thinking. For leaders
already falling behind in other areas (see our think piece “The
Leadership Cliff”), integrating the contingent workforce represents
a signficant hurdle to developing a successful talent strategy.
Conclusion
As economic, social, and technological changes continue to
remake the world of work, the nature of employment is shifting.
More and more companies are relying on contingent employees,
forcing executives to meet the particular needs of these workers
and the challenges of deploying them across successful
businesses. And as governments continue to take notice of the
trend, companies face even more hurdles.
Executives must recognize that the rise of the non-payroll
workforce represents a major business transformation, and
be prepared to invest in the technology and training required
to support new ways of working. They must also understand
that company culture has to adapt in order to accommodate
contingent workers, demanding new approaches to the
traditional employment relationship—and new ways of managing
all kinds of employees.
- What are the pros and cons of a contingent workforce?
-
How should companies maximize the contingent worker?
- Describe when a contingent workforce 'make sense' and when it does not. Explain your answer.
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