Workplace Trends for 2013 – Part 5 of 5

The “Contingent” Workforce is Here to Stay

— For the last few weeks we’ve explored Workplace trends for 2013, including non-traditional benefits for the younger workforce; how healthcare exchanges will transform employer benefits; using social media to attract employees, and why so many jobs remain unfilled during high unemployment.

This week, we’ll look at why employment relationships are evolving from the traditional employer/employee arrangement, to what’s referred to as a “contingent workforce” with more temporary, leased and contract workers.

You might think the trend started with the economic downturn in 2008, but I’d say it was noticeable much earlier, around the time the dot.com bubble burst in 2000. Not surprisingly, the economic uncertainties of the last decade have made employers want more flexibility in how they staff their operations, but there are many other factors besides the economy also contributing to the trend. For instance:

New technology and globalization- allowing collaborative work to be done remotely and across geography.
“Just in time” supply and inventory – requiring addition of temporary staff for specific needs.
Hiring freezes – leasing workers is a way to get around them.
Retirement of highly skilled employees – leaving a knowledge gap to be filled.

So, whether it’s hiring temps for a project, accessing specialized talent on a contract basis, or trying to get around payroll constraints, employers want and need the latitude offered by a contingent workforce.

But it’s not all about employer needs. Many employees are willingly striking out on their own.

According to mbopartners.com the number of firms with just one employee has steadily increased from “about 14 million in 1992 to nearly 22 million in 2010”. In addition, they suggest that having done independent work will no longer be a ding in your resume, but may actually be a career positive. And they predict “an ever-greater number of career reinventions from late-stage experts retiring from traditional work and starting solo professional services firms.” Like yours truly.

Right now between 25-35% of the workforce is “contingent” and the percentage is expected to increase to about 40% in 2020. Like the other trends we’ve discussed in this series, this one too could fundamentally change the workplace as we know it.

And this wraps up the 2013 Workplace Trends series.