In the past five years, the labor force and job market have undergone significant changes. New trends continue to emerge and impact the way hiring authorities and recruiting firms think about job placements.
Times are changing, and in the last few years, the job market has seen a variety of trends and swings caused by the pandemic. However, much before we went into lockdowns, we were seeing a shift in a particular sector of the labor force; contract workers. Contract work benefits have become extremely sought after, and with a growing demand for more flexibility in the workplace, employers are looking to contract more of their staff than ever.
Unemployment Rates and Contract Workers
According to reports from the Bureau of Labor Statistics, the unemployment rate skyrocketed from 4% to almost 15%, primarily due to the economic fallout caused by the pandemic. Furloughs and permanent layoffs were forced by companies to keep them afloat in times of economic uncertainty, and contract workers were used to fill the gaps that the full-time workers left. Contract workers give the company flexibility that full-time employees, unfortunately, do not, and the pandemic has forever shifted the economic and employment landscape because of this.
Demand for Contract Work is Surging
Demand for contract staffing has been accelerated in the last 2 years, but executives believe it is here to stay permanently in the workforce. According to a recent report from the MRINetwork and People 2.0, over 70% of executives plan to use more temporary workers, with 32% of companies replacing full-time staff with contingent workers in the year 2020. Within the MRINetwork, there was a 117% increase in the MRI contract staffing business in the first quarter of 2020. This exemplifies the highly needed demand for contract workers for companies that are looking to cut payroll costs of full-time employees.
Contract staffing has become extremely popular from both the company’s perspective and the workforce for a set of reasons. Flexibility has become paramount to both hiring authorities and candidates during “The Great Resignation”. Employers can streamline their hiring process with highly skilled workers, and are able to mitigate their hiring risks with temporary contracts. Some examples of contract work benefits would be given are as follows:
- Better work/life balance
- Low barriers of entry to gain new experience and skills
- Potential at gaining a full-time position with the company
Alternative Work Models
As the traditional nine to five work model becomes increasingly less popular amongst the working class, contract work allows professionals to work in a flexible environment that is catered to their needs. New work models have gained traction during the pandemic and after, as workers want flexibility within their schedule, and in many cases, want to work completely remotely. As new work models emerge, the lines between permanent and temporary employees are blurring as freedom and flexibility have become a center point in the current labor market.
According to the MRI and People 2.0 report, over 59% of workers value a flexible work arrangement over salary or benefits, and a massive 93% of knowledge workers want a flexible schedule. Steve Schaus, President and Global COO of People 2.0, added that “Specialization, prioritization of profession over the place of work, shifts in work-life balance, fading borders, and advancing technology are all fostering a need for freedom and mobility”. This shows that the future of work will be flexible and cater to the personal needs of the employee.
Where Recruiters Can Help
With an exceptionally large increase in demand for contract staffing and a labor market of candidates looking to work in a flexible work arrangement, it could be in your company’s best interest to use a recruiting firm to assist in the placement of high-quality contract workers. Management Recruiters of Tallahassee have over 87 years of combined recruiting and job placement experience, so please feel free to reach out to us at mrrecruiter.com/contact-us.
We can help your company with contract staffing as well as retained, engaged, and contingency searches. We’d be happy to meet with you to discuss your company’s hiring needs.