Research Shows Contingent Workers Are Driving Real Organisational Change

Published: 09 Dec 2019

During this time of digital, political and economic disruption, contingent workers have the potential to drive real organisational change. However, friction between flexible and permanent workforces has the potential to lead to high attrition rates and low productivity. That is according to the latest research from international talent management provider, Guidant Global.

In the talent management specialist’s new whitepaper, the MSP handbook, the company highlights the growth of the non-permanent workforce and how talent attraction and management strategies are having to shift to reflect this.

This comes at a time when Deloitte’s Global Human Capital Trends paper reveals that only 42% of businesses report that their workforce is made up primarily of permanent employees.

Figures from Staffing Industry Analysts, also indicate that 2018 saw a marked growth of 8% in the global MSP market, following a 12% rise in 2017. Market analysis by Statista supports the sustainability of this growth trend suggesting that the global managed services market is expected to grow to US$296 billion by 2023. Businesses are increasingly embracing MSP solutions to manage and optimise their evermore complex, flexible workforces.

To help businesses attract the best non-permanent talent, forward-thinking MSPs are utilising employer branding experts to help their customers improve the way they present their brand to prospective talent. This new approach is being referred to as ‘Contingent RPO’. This model adopts all of the tools and techniques used by in-house and direct hire RPO solutions - for example, EVP, community technology platforms and branded marketing campaigns - within an MSP program.

Surprisingly, or perhaps not, given the rise of contingent worker foothold within businesses, in 2018, 68% of MSP contracts were awarded by businesses with no prior experience of using an MSP. However, Guidant Global warns that if this is not managed correctly, firms risk the creation of internal friction within their total workforce.

Commenting on the growth of MSPs, Simon Blockley, Chief Executive Officer at Guidant Global, said:

“The rise of the non-permanent workforce is having a significant impact on talent ecosystems – and businesses now have no choice but to review how they manage contingent workers. As our research shows, a direct outcome of this evolution is that businesses are increasingly leveraging the compliance expertise, workforce technology and talent acquisition prowess of MSPs.”

“A hands-off supplier management approach is an option, but for organisations which care about authenticity and want to attract, retain and engage their growing contingent talent pools, the partner managing them needs to be closely aligned with brand values, company culture and organisational objectives, as this helps to ensure talent, whatever their method of engagement, is a good fit for the organisation thus keeping friction at bay between permanent and flexible talent.”

“Furthermore, as the categories of, and channels to, a contingent workforce develop, having visibility of spend across multiple functions becomes tough, especially if the right processes aren’t in place. By taking care of compliance, technology and the management of non-permanent workers of all types, an MSP can free up HR and the business alike to focus on work more closely aligned to their strengths – allowing them to manage workforces in a better way.”

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