ripe for revolution? the evolution of contingent workforce management.

is it time for the contingent workforce industry to undergo a profound transformation? 

The past decade has witnessed a surge in discussions about statement of work (SOW) management, the concept of total talent and the gig economy. However, despite these ongoing conversations, the industry has yet to see a fundamental shift in how we manage our contingent workforce. The question that looms large is: Are we on the brink of a major disruption or a significant evolutionary leap?

In the past, there was a lack of organization and control over contingent workers, such as temporary or freelance workers, within companies. Managed service providers (MSPs) were introduced to address this issue. They were created to aggregate and centralize data about contingent workers into a single platform. This centralization allowed for better visibility, compliance and control over the workforce, providing companies with insights and management capabilities that were previously lacking.

While the original goals of compliance, visibility and aggregation are sufficient and will remain crucial, the contingent workforce strategy needs to evolve its value proposition to an organization.  The next step in the evolution of MSPs involves not only managing the workforce but also facilitating access to wider talent pools. This includes cataloging specific skills and abilities of contingent workers, ensuring that the right skills are matched with the right tasks or projects. In essence, it's not just about managing the workforce, but also about efficiently accessing and utilizing the right talent for specific needs.

Around 2008, organizations began grappling with the challenges of SOW management in the realm of workforce management. Around the same time, the term “total talent” had entered our lexicon, reflecting the idea of holistically managing all types of workers, from traditional employees to freelancers. The gig economy gained prominence around 2012, ushering in a new era of flexible work arrangements. And of course, the recent pandemic catalyzed the adoption of new working practices.

These concepts have been simmering on the back burner for some time. Yet, despite their long gestation, the contingent workforce industry has not undergone a profound transformation. We find ourselves in a situation where we have been talking about these ideas for years, but they have yet to manifest as a significant change in the way we manage our workforce.

the maturity of contingent workforce management

In recent years, organizations have become more serious about adopting these concepts into their workforce management strategies. There's a growing maturity in how we engage with our contingent workforces and manage programs that involve non-traditional workers. The need to stay competitive and adaptable in a rapidly changing business landscape has become more pressing.

One of the key challenges in contingent workforce management is technological innovation. Vendor management systems (VMS) have been the workhorse of the industry, efficiently managing workflows from initial demand to fulfillment. However, the next phase of evolution requires a seamless integration of ancillary technologies that enhance the workforce management life cycle.

These technologies should complement the existing ecosystem without feeling like a complete departure from established processes. In other words, they should enhance the journey rather than create a disjointed experience.

strategies for the future

To navigate this evolving landscape effectively, adopting a holistic strategy that embraces the principles of total talent is essential. This means identifying core skill sets, anticipating market demands and proactively shaping a workforce that blends permanent employees and contingent workers.

Investing in strengthening your employer brand to attract top-tier contingent talent is important too. If your organization can become known as an appealing destination for skills, regardless of employment status, this will help to set you up for success.

the desire for change

In the current climate, there's a palpable desire for change among industry professionals. Many are eager to break away from traditional approaches and seek more fundamental shifts in contingent workforce management. Customers, too, are increasingly asking for solutions that go beyond the status quo.

As we reflect on the trajectory of contingent workforce management, it's evident that we stand at a crossroads. The industry has matured, and the time is ripe for significant change. Whether it's a major disruption or an evolution, the need for innovation and intentional design in contingent workforce management is clear.

Collaboration among industry experts and thought leaders is key to driving this change. By pooling our expertise and insights, we can usher in a new era of contingent workforce management that fully embraces the potential of a flexible workforce.