The number of layoffs in the tech industry has been more than just headline-grabbing, it’s caused leaders to rethink how they staff. We’ll look at contingent workforce trends, how organizations are optimizing the latest patterns, and why Managed Service Providers (MSPs) have been on the rise.
Growth in Contingent Labor Force
The growth in the contingent labor force is nothing new. It’s something of a byproduct of the changing times. With people more mobile than ever before, they crave the same flexibility from their jobs. Moreover, an increasing number of individuals are extending their working years. Baby boomers, in particular, are committing to stay active in the workforce beyond the traditional retirement age, contributing to a shifting demographic landscape in the employment sector.
On the hiring side, organizations are starting to see how they can optimize their resources without sacrificing the quality of their results. Instead of having multiple parties work independently, Vendor Management Systems (VMS) and MSPs like Monument can be brought in to organize it all, so there are no dropped balls.
Around 80% of organizations use a contingent workforce of some kind, with about 65% of organizations planning to increase their usage of contingent workers in the near future. These are organizations that may struggle with turnover or they may just have uneven or unpredictable workloads. Regardless of why an organization turns to a contingent workforce, many often stumble onto a more efficient business model. The key is finding the right people to bring it all together.
Remote and Hybrid Workforce Adoption
The tech industry has been one of the most stubborn about coming back into the office, despite everything from incentives to threats from their employers. (It’s clear that there is something lost when people can’t work face-to-face, though the answer to this basic problem is far from one-size-fits-all.) This has led to organizations feeling pressured to find compromises where everyone can thrive.
Monument has seen how contingent workers can be used to improve the results of a remote or hybrid workplace, particularly when the organization is under strain. By providing full-time staff with more resources, organizations can simultaneously improve morale and productivity.
If you’re wondering who’s going to manage it all, the best MSPs have developed a track record of being able to strategize from top to bottom. Whether the question is how much to spend, how many workers are needed, or which suppliers to use, leaders can trust the right MSP to oversee it all.
Technological Trends
Gen AI and intelligent automation are everywhere these days, with companies across all industries at least curious about what it can do for them. This is a controversial subject for some, but it’s also an opportunity to cut down on the inefficiencies that are likely plaguing your employees. Ideally, technology can be used to facilitate the onboarding of a contingent workforce, so the contingent workforce can continue to adjust or add value to the company’s current systems.
Monument has seen clients drown in data, either failing to use it correctly or failing to use it at all. AI has the power to streamline analytics and reporting, but companies that put too much trust into it may inevitably find themselves wishing they hadn’t. If you’re looking for an MSP that has done their homework and successfully applied that research to individual organizations, you can trust Monument to deliver.
Focus on Skills, Not Experience
A contingent worker succeeds and fails by the strength of their skills. Even more than an employed worker, who could conceivably coast in a large organization based on a largely inflated résumé, a contingent worker has a limited amount of time to prove their worth. If they can’t hack it, they may not even make it until the end of the project, let alone be invited back should the organization need them again.
The trends are very straightforward here: if the organization isn’t able to ascertain the true value the worker brings, their entire contingency strategy can be compromised. Monument has helped our clients drill down on the exact expertise they need to fill each role, so there are fewer hiccups along the way. It can be difficult to find people who have the skills, personality, and availability to match the company, but it is possible when you use an MSP with the right connections and reputation within the industry.
Growth of MSPs
Given the contingent workforce we’ve covered, it’s easy to see why a quality MSP would be worth its weight in gold. A contingent workforce comes with a number of benefits, but it also comes with endless questions about how to staff, onboard, train, and wrap up.
The liability alone would be enough to make any employer question whether it was really worth it. MSPs have the expertise to take over even the most unwieldy of projects, finding ways to break down each phase into digestible pieces. They can maintain communication between workers and staff members, ensuring that both sides are on the same page about what’s expected.
When it comes to hiring a workforce, it’s important for organizations to understand not just how contingent workers view the situation, but also where they’re coming from. It’s not about catering to their demands, but about finding a bridge between the two (sometimes competing) objectives. It’s the MSP that can be the go-between, which is why organizations need to find teams that can successfully work with people from every walk of life.
There are a lot of risks for full-time employees on both sides of the aisle. Contingent workforce trends show that employees want to maintain their autonomy, and organizations want to have some flexibility when they’re staffing for major projects.
Contact Monument Today
Since 2003, Monument has been able to lead contingent workforces by focusing on both long-term goals and day-to-day execution. This isn’t a case of micromanaging employees, but about finding people who can commit to the job until it’s done. We manage everything (and everyone) under the umbrella for as long as our clients need us to. Contact us today to see how we can help!