This is the tenth article from the Deloitte Human Capital Trends 2011 series, titled Contingent Workforce – A Critical Talent Segment

The use of contingent workers has increased dramatically over the past decade as businesses have struggled with rising labor costs and the need for a workforce that can quickly adapt to market conditions. Contingent workers are people who provide services to an organization but are not paid on the company payroll. Think contractors, consultants, temps, outsourcers.

Even in today’s tight job market, there is a shortage of workers with critical skill sets. This has resulted in a steady, year-over-year growth in the size and cost of a larger contingent workforce. As the baby boomer generation is starting to retire, companies are bridging the critical skills gap with a more contingent workforce. It is also reported that the use of a contingent workforce has increased for both its strategic and operational impact on the organizations. Some large companies estimate that up to 30 percent of their procurement spend is focused on contingent workers.

Though the contingent workforce is growing in importance, many organizations may not be skilled at managing this workforce segment effectively. Major challenges include the lack of an integrated workforce management strategy, ad hoc (and at times high-risk) managerial behavior, poor data management, and inadequate technology. These shortcomings can expose companies to significant business, financial, and public relations risk.

Read the full article . . . . Contingent Workforce – A Critical Talent Segment

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