{"id":16523,"date":"2018-05-07T18:14:34","date_gmt":"2018-05-07T18:14:34","guid":{"rendered":"https:\/\/fieldnation.com\/?p=16523"},"modified":"2025-09-10T14:26:53","modified_gmt":"2025-09-10T19:26:53","slug":"contingent-workforce-quality","status":"publish","type":"post","link":"https:\/\/fieldnation.com\/resources\/contingent-workforce-quality","title":{"rendered":"True quality of the contingent workforce"},"content":{"rendered":"

This whitepaper was written by Christopher Dwyer, Vice President of Research at Ardent Partners<\/a>.<\/p>\n<\/a>

Introduction<\/h2>\n

The world of work is changing. Transformational thinking is happening within today\u2019s enterprises as the Future of Work, Gig Economy, and other market shifts are occurring. One of the most notable shifts in business today is the rise in non-employee labor, which, according to new Ardent Partners research, comprises approximately 40% of the average business\u2019 overall workforce. However, even with this steady rise in growth and utilization of contingent talent, one major question remains: Is this an effective means of bringing high-quality skillsets into the organization? This Ardent Partners report will deep-dive into the growth of today\u2019s non-employee talent and present research and insights into how a contingent workforce is a critical asset to leverage.<\/p>\n

A New World of Talent<\/h3>\n

For the past decade, the world of work has been changing due to the continued growth of the non-employee workforce. At the time of the Great Recession (2007 \u2013 2008), roughly 15% of the average company\u2019s overall workforce was considered \u201ccontingent\u201d in some way. As the global marketplace underwent a sluggish economic recovery period, non-employee talent became the primary means for handling increased demand for products and services, as well as addressing core skills gaps left behind by Recession-era layoffs. Today, 40% of the typical enterprise\u2019s total workforce is considered \u201cnon-employee,\u201d\u00a0and Ardent Partners expects this number, which includes workers sourced via staffing suppliers, professional services, freelancers, independent contractors, outsourced workers, and robotics to continue to rise well into the next decade. This rampant growth, compounded by the increasing\u00a0strategic importance of multiple facets of the \u201cnew world of work,\u201d proves that the non-employee works sits in a critical role today.<\/p>\n

\"\"<\/a><\/p>\n

Two slices of the \u201cnew world of work\u201d graphic above represent just how far talent engagement has come in recent years:<\/p>\n

The \u201cconsumerization<\/strong>\u201d of business has pushed the boundaries of how companies consume talent, much in the same manner that automation and mobility have revolutionized the consumer\u2019s world into an on-demand shopping arena that is always open and available.<\/p>\n

The very evolution of talent<\/strong>, in which companies have steadily increased their year-over-year utilization of non-employee labor to support, augment, and lead both tactical and strategic attributes of the greater organization.<\/p>\n<\/a>

Common Contingent Labor Misconceptions<\/h2>\n

Although the world around the modern contingent\u00a0workforce has been transformed significantly over the past several years, there are still many misconceptions<\/a> regarding the quality, utilization, approach, and overall impact of this\u00a0segment of the labor market, including:<\/p>\n

    \n
  1. Contingent labor is merely viewed as a stopgap for short-term roles that require simple skillsets.<\/li>\n
  2. The vast majority of temporary and external labor should be sourced via staffing suppliers and vendors and other more traditional methods.<\/li>\n
  3. The quality and impact of the contingent workforce is not as significant as the traditional workforce (i.e. FTEs).<\/li>\n
  4. Contingent labor is not a strategic asset to the contemporary enterprise.<\/li>\n<\/ol>\n

    While the above aspects, at one time, could be applied to the non-employee workforce, the truth is that these are outdated concepts and are no longer applicable to the contingent workforce of today\u2026 considering the advances made in not only talent engagement technology, but also the greater, strategic impact that external workers bring to the modern organization.<\/p>\n<\/a>

    The On-Demand Workforce: Agility, Depth, and Quality<\/h2>\n

    For years, the contingent workforce represented no more than a strategy to augment on-hand resources, project-based needs, or seasonal demand. Today\u2019s non-employee\u00a0workforce, however, contributes much more than tactical skillsets for short-term projects or initiatives. In fact, Ardent\u2019s research has discovered that 97% of organizations today perceive non-employee talent as a
    \ncritical, strategic driver of value. With 40% of today\u2019s total workforce considered non-employee, now, more than ever before, contingent labor is a crucial component of the modern enterprise and how it performs in the global marketplace.<\/p>\n

    A major driver for the growth of the contingent workforce can be attributed to the evolution of talent engagement and the realm of on-demand and online talent platforms. Some of the biggest areas of innovation in today\u2019s world of work, online staffing and online talent platforms, as well as online talent marketplaces and labor automation technology, have enabled businesses (and, more importantly, hiring managers) with the ability to find, engage, and source independent contractors, temporary workers, and freelancers in near real-time.<\/p>\n

    The online staffing arena has revolutionized how businesses approach their talent gaps. While the usage of major staffing suppliers will never fully cease (since many large-scale organizations leverage these vendors\u00a0for high-volume staffing and have developed long-term relationships with key staffing stakeholders that understand the nuances of a company\u2019s hiring needs), the fact is that the utilization of online staffing is on the rise. In 2018, Ardent Partners finds that nearly 60% of all organizations across the globe are currently augmenting their traditional talent acquisition strategies with online and digital staffing outlets, proving that these on-demand talent marketplaces have become (and will continue to be) robust sources of skillsets.<\/p>\n

    The Algorithm Factor: Ensuring Quality<\/h3>\n

    One of the hesitations with using online staffing outlets is the fear that workers or freelancers engaged via these platforms will not be of the same quality as talent sourced through more traditional means (i.e. staffing suppliers). However, many online talent platforms are built on innovative, data-led functionalities that help users \u201cmatch\u201d a specific project\u2019s key requirements (as
    \nwell as the necessary education, skillsets, certifications, etc.) with the available freelancers\/workers. This match\u00a0factor (often presented in percentage form) can help hiring managers understand the alignment between the work that needs to be done, and the potential workers that can address it.     Algorithms<\/a> and artificial intelligence are quickly revolutionizing the way enterprises engage external talent; by harnessing the power of data and skillset-induced insights, quality of the worker and the project fit may even improve when leveraging online staffing platforms.<\/p>\n

    The Real Value of the Non-Employee Workforce<\/h3>\n

    While the value and impact of today\u2019s non-employee\u00a0workforce is not universally understood, the fact remains that the contingent workforce, in 2018, is a real and strategic asset to the modern
    \nenterprise. With 40% of the global workforce considered non-employee, it is clear that more and more organizations are cognizant of the value that contingent labor can bring to various projects, corporate initiatives, and everyday operations. Looking deeper, today\u2019s non-employee workforce is:<\/p>\n