Contingent Workers – More Common Place in Business

Image - Industrial Warehouse EmployeeToday’s economy and environment continues to show that U.S. companies are increasingly relying on a contingent workforce. There are many reasons why, although the one we see most is that the demand for workers exceeds the supply.

  • In 2016, companies reported that contingent workers comprised a median 20% and an average of 22% of their workforce. We define contingent workers as all non-permanent workers including the full range of agency temporary workers, internal temporary workers/interns/seasonal workers, independent contractors and statement-of work (SOW) consultants, but excluding part-time regular employees.
  • The reported share of contingent workforce has shown a trend of substantial increase since 2009, when we first started asking about this metric in our annual buyer survey. The reported contingent share of workforce has risen from a median 10% and an average of 12% reported in our 2009 survey.
  • The mix of types of contingent workers – companies reported the following averages:
    1. Agency temporary workers (50%)
    2. Statement-of-work (SOW) consultants (30%)
    3. Independent contractors (11%)
    4. Internal temporary workers (7%)
    5. Other (3%).
  • When asked about plans for various types of contingent workers over the next ten years, companies were most bullish about increasing their share of outsourced workers, SOW consultants and freelancers. A substantial portion of companies (44%) projected that regular full-time employees would comprise a smaller share of their workforce.
  • Contingent share of their workforce would rise to an average of 25% in two years and 29% in ten years.

*Survey by Staffing Industry Analysts – A Staffing Industry Research Company.

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