Subadhra Sriram's Blog

All Hail the Contingent Workforce

Last week, Bryan Peña declared 2012 as the year of the customer.. I respectfully disagree. I declare 2012 as the year of the contingent workers themselves.. This also goes against the Chinese Five Element Astrology Calendar, according to which 2012 is the year of the dragon. But with apologies to Bryan Peña and the Chinese Zodiac, this CW species deserves a shout out. Here’s why.

  • More than $2 trillion has been spent globally on this workforce. This includes independent contractors, statement of work consultants and agency workers.
  • 16 percent of an average large company’s workforce is contingent, up from 11 percent in 2005.
  • Nearly 50 percent of CW managers devote majority of their time to this role, up from 26 percent in 2005.
  • 76 percent of large companies have a vendor management system in place, while 58 percent have a managed service provider to manage this segment of the workforce.

What this points to is the professionalization and evolution of the contingent workforce and its management. There was a time (not too long ago) when Staffing Industry Analysts's Barry Asin speculated about organizations having senior executives with global responsibility for all things contingent. He claimed at the time it was a starry eyed proclamation. Not any longer.

There has been a sea change in how we view this segment of the workforce. The recession helped. It showed how the flexibility, experience and skill that contingent workers bring can be integral to a business. And now this outlook is being adopted by midsize and small companies. As contingent workforce managers, you are at the vanguard of this movement. We understand that your job is about delivering results. But to truly do your job well, you need to demonstrate the value of your contingent talent. And that takes us right back to why these folks are this year’s heroes.

Comments

Add New Comment

Post comment

NOTE: Links will not be clickable.
Security text:*

SP3M Group LLC

Mike Hammer 12/14/2012 05:18 pm

I think both views are in error. Next year will be the acceleration of IT moving to cloud computing and secure virtualization outsourcing, which will in turn flatten the management structure even more melding HR, Finance and IT. This is driven not only by cost advantages and workers bring their own computing devices (BYOD), but by increasing key skilled talent shortages worldwide and recognition that higher margin future growth will come in emerging markets -- not in the USA. That in turn will escalate the acceptance of a more blended workforce approach with better automation, analytics and management tools for this mixed generation, always connected, and global culture work community.

To see my reasoning and predictions join my webinar on HR.com, January 30, 2013 @ 3 pm EST For more details here's a link http://www.hr.com/en?t=/contentManager/onStory&StoryID=1354587288057


Total 1 comments


Recent Blog Posts

Beat the Holiday Rush with Temps

Given the current 7.8 unemployment rate, it should be a breeze finding seasonal workers to man the cash register, help with sales or other holiday projects that need assistance..

But it’s not. Employers... Read More

Tis the Season for Higher Margins

Buyers of staffing services are not going to be finding bargains this season; a shortage of certain skills sets is back on.

It was different during the recession, when staffing firms’ margins dived down.... Read More

MSP Usage Trending Down

There has been so much hoopla around MSP usage. I, among many others, have recently blogged about the insource/outsource debate. And here’s more fuel to add to the fireworks. Recent Staffing Industry... Read More

Don’t Call Me, Call my MSP

It’s a very familiar scenario. And it doesn’t matter what staffing segment you are in. The common complaint: MSPs block suppliers from contacting the client.

At last week’s Healthcare Staffing Summit... Read More

To Outsource or Not? To Be or Not to Be, Part 2

The topic of whether to outsource your MSP has triggered a whole set of reactions. I am really reminded of the “you say po-tay-toe, I say po-tah-toe, I say to-may-toe, you say to-mah-toe” semantics... Read More

To Outsource or Not? To Be or Not to Be

People who ask this may not suffer the same torment as Shakespeare’s famous protagonist Hamlet.  But this question kept coming up at the CWS Summit in San Diego last month: Should I outsource my... Read More

Five Key Tips: What To Do Before Starting a Contingent Workforce Program

Last week’s CWS summit clarified a few things for those in the contingent workforce management space. One big take-away for me was that one size does not fit all. There is no right or wrong recipe. But... Read More

Narrow Escape: Threats of Healthcare Penalties Lessen

First, the good news. The federal government issued guidance at the end of August that could significantly reduce employer penalties under healthcare reform. Of course, we are talking about 2014 when those... Read More

Not Really the Big Bad Wolf

It used to be that the staffing industry at best was considered a middleman. At worst a necessary evil. Popular media love the image of the staffing industry as the big bad wolf screwing the little guy... Read More