Nurturing the flexible workforce: A sustainable approach to contingent labor
Staffing Stream
Nurturing the flexible workforce: A sustainable approach to contingent labor

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The pandemic and subsequent Great Resignation have revolutionized workforce management, underscoring the crucial role of contingent labor in maintaining business continuity. As organizations recognize the importance of treating all workforce segments equally, the need for flexibility, resilience and adaptability has become more apparent than ever.
Contractors, freelancers and other non-traditional workers are now indispensable to any robust workforce strategy. These professionals help businesses stay agile and respond quickly to market changes. They also often serve as a pipeline to permanent positions, contributing to long-term growth and competitiveness.
Historically, many companies underestimated the importance of their employer brand among contingent workers. However, recent shifts in workforce dynamics have highlighted that how you treat your contractors is just as crucial as how you treat your full-time employees. With contractors often comprising around 30% of the workforce, their sense of value and inclusion is vital for a cohesive and sustainable work environment.
High Competition for Contingent Talent
Despite a cooling labor market, finding and retaining contingent talent remains challenging in many sectors. The IT industry, for instance, still experiences tight labor conditions, with government agencies and startups competing for talent previously attracted to major tech companies. The retail sector faces similar challenges, highlighting the importance of creating an engaging and supportive environment for contingent labor.
Some organizations have started to offer incentives like project completion bonuses or opportunities for permanent positions to attract the right talent. Even with a thriving gig economy, employers must actively engage and attract contingent talent, focusing on identifying individuals with the right skillsets and investing in their development.
Embracing Skills-Based hiring for Contingent Workers
The concept of skills-based hiring is gaining momentum as companies prioritize specific skills over traditional credentials like college degrees. This approach is especially relevant for contingent labor, where certifications and on-the-job experience often outweigh formal education.
Skills-based hiring also acknowledges that valuable skills can come from various employment arrangements, not just traditional job titles. You can look to contractors on a short-term basis to “borrow” skills and plug current gaps with. Additionally, organizations are also recognizing the importance of continuous learning and development to keep their contingent workforces adaptable and skilled. More organizations are investing in programs to support ongoing learning among their contingent workforces, something which has traditionally only been available for permanent employees.
Tips for Long-Term Engagement with Contingent Talent
A comprehensive approach to attract and retain top contingent talent is required:
Embrace skills-based hiring. Prioritize specific skills over traditional credentials. This approach is particularly relevant for contingent labor, where certifications and on-the-job experience often outweigh formal education.
Invest in continuous learning. Provide access to training programs and resources to help contingent workers stay updated with industry trends and improve their skills.
Track skills and experiences. Develop a system to match contingent workers with assignments that align with their expertise and interests.
Offer diverse assignments. Provide opportunities for workers to engage in various projects across the business, keeping their work exciting and expanding their skill sets.
Foster a sense of belonging. Cultivate a strong organizational culture that makes contingent workers feel valued and connected to your company.
Build long-term relationships. Maintain ongoing connections with your contingent workers, keeping them informed about future opportunities.
By integrating contingent workers more effectively into your workforce strategy, you can improve agility, access to talent and overall business performance. This approach not only meets immediate business needs but also supports long-term sustainability and growth.
As you navigate the evolving landscape of work, it’s clear that a sustainable approach to contingent labor is not just beneficial — it’s essential. By valuing and nurturing your flexible workforce, you create a more resilient, adaptable and competitive organization ready to face the challenges of tomorrow.
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