White Papers & Research

Planning For Contingencies - An HRO Today Article

Although differing markedly across regions, managed service programs are a big part of the global future.
By Debbie Bolla for HRO Today Magazine

Not many sectors of the market have seen growth in the last few years, but contingent labor is one of them that has. According to Aberdeen research, three to four years ago contingent workers made up 14 percent of the total workforce. At the end of 2010, data showed that the percentage had increased to 20. Analysts are forecasting another 5 percent growth this year. What factors are driving this?

"A lot of companies are moving toward project-based work, especially if they only need someone to complete a task in a short period of time," notes Chris Dwyer, research analyst in global supply management for Aberdeen group. "Contingent labor has exploded so much due to the economic downturn. When companies start their recovery period, they may be able to hire some people on, but more often than not, it's a lot easier to hire someone on a temporary basis."

Organizations have seen the advantage that temporary workers provide, given the soft economic climate; unemployed professionals who might have overlooked a contract job in the past now jump at the chance for any type of paid work. Workforce dynamics are also playing a role. Kip Wright, vice president and general manager of TAPFIN, a Manpower company, explains that the aging workforce, coupled with a new pool of workers, drives the appeal of contingent work.