Staffing Provider Says Contingent Workforce Becoming Norm in U.S. Companies
According to the study, 67 percent of companies indicate they currently use contingent workers in some capacity and most indicate that contingent workers comprise a steady or increasing percentage of their overall employee populations; 71 percent of organizations who utilize a mix of contingent and full-time workers say the flexibility of the contingent workforce has allowed their organization to remain nimble during economic ups and downs.
In addition, nearly one-quarter (21 percent) of companies surveyed plan to increase their percentage of temporary or contract worker population in the next 12 months, and 39 percent plan to increase their percentage of full-time workers, the study says.
“The recession produced such significant operational and financial duress for U.S. companies that the business model of the future will rely heavily upon the ability to be insulated from economic downturns. We live in a world now that rewards financial flexibility rather than fixed-cost business models, and agility, cost containment reign supreme,” says Jim Link, managing director of Human Resources for Randstad US. “What used to be viewed as a temporary stop-gap measure, the utilization of a contingent workforce alongside full-time talent is no longer a contingency plan.”
The study finds many workers are choosing to work as a temporary or contractor, and their experiences contradict many previously held beliefs about the world of contingent employment, the organization claims. The study finds:
- Sixty-three percent of temporary and 73 percent of contract workers rate their growth potential with their current employer as good or excellent
- Eighty-six percent of temporary/contractors agree their current level of job satisfaction is very good/excellent compared to 73 percent of permanent workers
- Fifty-four percent of temporary/contract workers strongly agree with the statement “I am paid what I’m worth” compared to only 42 percent of permanent workers
- Workers choose temporary or contract employment for a number of reasons beyond the hope that it will lead to permanent employment. Three of the top reasons include:
- Flexibility of schedule (31 percent)
- Money is better (28 percent)
- To be in charge of my own career (21 percent)
- Temporary and contract workers are accounting for many higher-level positions and are considered top talent by numerous organizations. For example, the study finds that 40 percent of employers report that many of their top talent got their start as temporary workers in their organization. Nearly one-third of temporary workers (32 percent) are currently holding a managerial or supervisory position.