On average, contingent labor makes up 28% of a large company’s workforce, according to a report released earlier this month by MBO Partners.
MBO Partners defines contingent labor as all non-permanent workers, including temporary agency workers, internal temporary workers, freelancers, independent contractors and statement-of-work consultants.
Over the next 18 months, 67% of corporations expect their use of contingent labor to increase. Only 5% of respondents expect their usage to decrease. And over the next five years, almost eight out of 10 corporations expect their use of contingent labor to increase, while only 6% expect it to decline.
MBO Partners now expects the use of contingent labor to increase to 33% in 18 months and 36% in five years.
Additionally, 82% of organizations reported skilled contingent workers make up half or more of their contingent labor force.
The top reasons for using contingent labor for 38% of companies are to meet temporary workload needs, followed by boosting productivity, 35%; getting tasks done more quickly, 33%; getting access to specialized skills and hard-to-hire talent, 28%; and saving money, 14%.
Other findings:
- Top challenges for hiring contingent labor include ensuring work quality, finding contingent labor with needed skills, and managing turnover and transitions.
- 60% of firms reported actively using direct sourcing for contingent labor, 28% are experimenting with it and 12% are not currently using direct sourcing.
- 77% of HR professionals expect their firms to increase their use of internal independent worker marketplaces over the next 18 months, with 13% expecting substantial increases in use.
The 2022 study includes responses from 504 HR managers, directors, vice presidents and chief human resources officers from large corporations. In addition, comprehensive interviews were conducted with 16 senior human resources professionals from large organizations.
Original Article:(https://www2.staffingindustry.com/Editorial/Daily-News/Contingent-labor-comprises-28-of-large-organizations-workforce-MBO-Partners-62801)
