As more companies, from small-medium to large enterprises, continue to embrace the new online environment and realise its value in transforming their business in the digital age, the contingent workforce has become an unstoppable sector where a growing number of professionals choose to become independent talents.
In the Asia Pacific, the top five countries with a fast-growing number of contingent workers are Indonesia (67%), Hong Kong (66%), Malaysia (64%), Singapore (60%) and India (59%). The evolving demands in key industries due to new technologies and systems are partly due to contingent labour adoption.
How companies are filling gaps in workforce shortage
PERSOLKELLY’s 2022 APAC Workforce Insights revealed that 58% of key industries will employ talents in the contingent workforce to address headcount shortages. In addition, training and upskilling of existing employees are also viable strategies for a sustainable workforce.
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Why do companies hire contingent workers?
With the increasing competition in hiring top talents, employers and human resources are enlisting talents in the contingent workforce. Here are strong reasons why companies are hiring more contingent workers, which will continue to grow in the next three to five years:
Flexibility in workforce planning
Companies should future-proof their talent needs by identifying how the workforce will change, the new technologies that will emerge and the skills they’ll require in the following years to come. With a contingent workforce, they can upsize or downsize as required without disruptions in the business.
Fill specialised roles
Access to expertise is a great advantage that employers can maximise. They see contingent workers as specialists on demand who can fill specialised roles on a long-term or short-term/project basis.
Diversity & inclusion in the workplace
Diversity, gender and ethnicity are beneficial factors that also contribute to a company’s positive branding, limitless creativity, increased productivity, and a healthy, inclusive and safe workplace. As Peter Oreb, CXC Global CEO, believes: “When you introduce diversity to the company, you get innovation.”
Reduced costs
Hiring contingent workers can help companies maximise efficiencies and reduce costs. Contingent workers are not full-time permanent employees who don’t need to be provided with employee benefits.
How do contingent workforce management solutions help?
Contingent workforce management solutions use existing and emerging technologies to streamline contingent talent sourcing to provide transparency, accurate and real-time reporting, and enhanced customer experience.
An example of this technology is mobile workforce management (MWM), an industry-specific tool that manages workforce activities and resources. A mobile workforce, according to IBM, is “a group of employees that isn’t bound by a central physical location. Instead, the employees are connected by various types of mobile technology: computers, smartphones and other mobile devices.” Contingent workers are also part of the mobile workforce.
Human resources leveraging MWM empowers their contingent workforce management services to streamline HR practices. CXC, in particular, provides robust and well-rounded solutions to employment, onboarding, global payroll, risk & compliance and more. CXC delivers the following:
- A strong focus on managing the contingent workforce in Asia
- Enable corporate programs tailored to the specific needs of the company
- Handle various compliance requirements across all regions
- Provide top-tier IT and technology workers
Choosing a trusted contingent workforce management organisation can save companies from wasting their time and money on unnecessary risks, poor planning and forecasting, and setting ambiguous expectations between the employer and contingent worker.
CXC is a global HR outsourcing organisation with 30 years of experience in workforce management. Our innovative and cost-effective solutions help companies gain a competitive advantage by improving efficiency while reducing risks.
Contact CXC today to start enabling your future workforce.
