Understanding contingent workforce trends and technology

Contingent workforce trends to help manage your future

The world of work is shifting fast, and businesses are tasked with adapting to new challenges and opportunities every day. As technologies like artificial intelligence (AI) continue to disrupt the digital landscape, it’s critical for organizations to find solutions that can help them stay ahead. This is where a contingent workforce can make a real difference, and companies of all sizes are starting to catch on. According to Allied Market Research data, the global contingent workforce management market was valued at $171.5 billion in 2021 and is projected to reach $465.2 billion by 2031.¹

The real superpower of a contingent workforce is the flexible, customizable network of freelancers, contractors, and temporary staff capable of reshaping how organizations operate and innovate. Contingent workforce management brings agility, cost-effectiveness, and trusted talent to organizations of all sizes - a valuable asset in today’s dynamic business environment.

As the demand for contingent work grows, technology needs will spring up alongside it. This article will take a look at some contingent workforce technology trends shaping the future of staffing.

Exploring contingent workforce management trends

Before we explore contingent workforce technology trends, let’s define contingent workforce. A contingent workforce is a group of workers not permanently employed by a company, instead hired on an as-needed basis. These workers are usually brought on board for a specifically designed purpose or for the duration of a given project. As opposed to traditional, full-time employees, the contingent workforce offers the flexibility of short-term, temporary staffing and semi-permanent solutions for managing labor needs without a long-term commitment or costly recruitment. Leveraging a contingent workforce for staff augmentation can save an organization time, money, and resources. It can better position an enterprise to withstand economic and market volatility, pivot to meet rising or changing consumer expectations, help scale more effectively, and guide future planning.

Managing a diverse network of freelancers, contractors, and temporary workers can be a large undertaking – consider the legal requirements, communication preferences, security demands, and performance management needs, among others. This is where technology can make a big difference – the following sections will define and examine some of the most noteworthy trends shaping contingent workforce management.

Contingent Workforce trend #1: AI will transform contingent workforce management

The ways we live and work have progressed to a whole new level with AI acting as a sort of technological sidekick. As it relates to staffing, AI can make a big difference in decision-making, predictive analytics, workforce optimization, and more, enhancing your contingent workforce management. Here are just a few examples of how AI can make a difference.

Leveraging AI in contingent workforce management can also help you automate, turning chaos into order and reducing day-to-day burdens on your teams. Tasks like onboarding, contract management, and payroll can be automated, reducing errors and freeing up time to focus on more strategic matters. Automation can bring reduced administrative tasks, increased productivity, and streamlined processes, helping you manage your workforce with ease.

For example, automation can efficiently handle onboarding processes – think automated forms, e-signatures on critical documents, and automatic delivery of onboarding materials. All of this reduces the time it takes to get new workers the information they need, and it means your internal teams aren’t burdened with tedious, repetitive tasks. Additionally, automation can assist in compliance monitoring, improve cross-collaboration and communication, streamline reporting and performance management, handle payroll and invoicing, and more.

As AI continues to grow in prevalence, we’ll continue to see it transform contingent workforce management in new and exciting ways. Consistently monitoring trends and understanding the shifting landscape can help your organization prepare for the future of staffing and more nimbly manage those changes with AI.

Contingent Workforce trend #2: Improved reporting and compliance with increased vendor management system (VMS) adoption

As the staffing landscape continues to change, so too will regulatory and reporting requirements. Compliance remains an area of concern for organizations of all sizes when managing a contingent workforce, and it’s important to find a solution that can keep up with any changes. This is where a VMS can make a big difference.

VMS solutions streamline the procurement and management of temporary and contract staff by centralizing all workforce data into a single, easy-to-use extended workforce platform. They offer advanced analytics and reporting capabilities, delivering actionable insights to empower data-driven decisions that optimize workforce utilization, control costs, ensure compliance, pass audits, and meet governance standards. This enables organizations to efficiently track and manage all aspects of contingent labor, from sourcing and onboarding to performance monitoring and offboarding.

Leveraging a VMS for contingent workforce management can take the hassle out of reporting and compliance, providing clarity, control, and additional peace of mind.

VMS solutions allow you to evaluate vendor performance, ensuring you're working with the best partners and getting the most out of your investment. They provide a trustworthy, comprehensive answer to increased regulatory and compliance requirements, allowing you to analyze and report on your data with ease.

Contingent Workforce trend #3: Cloud-based platforms supporting increased remote and mobile accessibility

Recent years have seen an uptick in remote work, and this is particularly true of contingent workers. Leveraging a remote workforce can expand your talent pool and allow for a more flexible, attractive work environment, but you must have an infrastructure that supports it. A comprehensive cloud strategy can facilitate increased remote and mobile accessibility, making you a more attractive employer.

The cloud is a network of remote servers that store, manage, and process data. It alleviates reliance on local servers or personal computers and provides a more centralized location for data storage. By enabling users to access and use resources on demand and from anywhere with internet access, cloud infrastructure facilitates greater flexibility, scalability, and cost-efficiency. Embracing cloud technology isn’t just a strategic move – it’s a necessity in today’s environment. It’s an integral component of a modern digital infrastructure.

Cloud-based platforms improve communication and efficiency across teams, and they can support anyone involved in your organization, from permanent employees to contingent workers. This fosters better collaboration and lessens the likelihood of miscommunication or bottlenecks in workflows. Cloud-based infrastructure makes your organization more attractive to potential workers by allowing them to work from anywhere, and it can strengthen your cybersecurity posture with the right policies in place.

Adapting to contingent workforce trends

The contingent workforce is a dynamic, essential element driving innovation and flexibility across industries. As businesses navigate the ever-evolving landscape of workforce trends, technology stands as a pivotal ally in adapting to these changes. From AI-driven talent matching to cloud-based platforms facilitating remote collaboration, the integration of cutting-edge technology is not just beneficial, it's vital. By leveraging these tools, organizations can enhance efficiency, ensure compliance, and maintain a competitive edge. Embracing these technological advancements is key to unlocking the full potential of the contingent workforce, ensuring businesses are not only prepared for today’s challenges but are poised to thrive in tomorrow’s opportunities.

CAI contingent workforce solutions can help commercial and public sector organizations improve speed-to-hire and operational performance, lower labor costs, align staffing with business objectives, and increase transparency across contingent workforce management and expenditure. If you’re interested in learning more about the benefits of contingent workers, fill out the form below.