2024 Baker's Best - 20

TOP MSP PROVIDERS
Managing
Contingent Labor
As many organizations lack insight into their non-employee workforce,
recent research sheds light on how HR leaders can best maximize the use
of these workers.
By Larry Basinait
A 2022 survey by McKinsey & Company finds that 36%
of employed respondents in the United States identify
as independent workers. Gartner research finds that
contingent labor is expected to comprise between 35%
and 40% of the global workforce by 2025 as companies
seek more workers who can quickly adapt to changing
market conditions in response to a growing demand
for niche digital skills.
But are organizations effectively sourcing and
managing their contingent labor-given the amount
of it and the increasing demand? To what extent
are available optimization tools being leveraged to
maximize use and reduce cost? An HRO Today and
Magnit research report, Optimizing Contingent
Labor: Key Struggles and Opportunities, examines
management visibility into contingent labor,
practices around sourcing contingent talent, and how
organizations are using data to manage the contingent
labor function.
[20]
BAKER'S BEST 2024 - www.hrotoday.com
Key findings from the report are below.
1. Responsibility for procuring contingent labor
in organizations has shifted over the years. Twothirds
(66%) of respondents indicate it is now an
HR responsibility, while 20% indicate it is both the
responsibility of HR and procurement. Organizations
see contingent labor as part of their planned
workforce instead of just a variable operating expense.
2. Most organizations have no or limited visibility
into their contingent workforce. Over half (56%) of
respondents have no visibility into their contingent
labor and external spend. For this group, there is
a lack of planning in optimizing contingent labor.
This can lead to organizational inefficiencies, higher
workforce costs, and poor decision-making based on
incorrect assumptions about the true makeup of the
organization's workforce.
http://www.hrotoday.com
2024 Baker's Best

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