Managing Contingent Labor Strategically


The work is largely considered mundane, process-oriented, and as a necessary overhead cost that provides little or no value.

If you work now or have worked in an organization that views contingent labor management this way, you work or have worked in an organization that has no clue about the future of strategic talent management!

Contingent Labor Taking Over?

Unless you are new to the workforce, chances are you have noticed a significant increase in the percentage of people working around you who are not employees of your organization. Sure, in the past there was the occasional temp who stepped in while someone was on family leave or covered activities during high-volume work periods, but today many organizations are awash with contingent labor of many types.

You may sit next to a temporary worker, a medium- or long-term contractor, an outsourced service provider, a consultant, a worker on loan from a strategic partner, an onsite representative from a vendor, a virtual worker (automation), or be connected to an offshored worker via collaborative technologies.

In just 20 years, the percentage of work allocated to contingent labor on average has grown from 6% in 1989 to more than 27% in 2009.

According to another study just completed in January by the Aberdeen Group, a majority of employers identified that their use of contingent labor would increase moderately in the next two years (1:10 employers are prepared for significant growth in the utilization of contingent workers).

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