A few years ago, the 2015-2016 edition of Ardent’s annual State of Contingent Workforce Management research study very pointedly emphasized the contingent workforce’s then-tipping point:
The “Flex Economy.” The “Gig Economy.” Non-traditional talent. Contingent labor. The “external” or “extended” workforce. The names associated with today’s contingent workforce may vary, but, one thing is certain: in 2015, the non-employee workforce has reached its true tipping point. No longer does the contingent workforce remain a mere spend category or arena of human capital; there are social, economic, political, and labor-oriented impact areas associated with today’s non-employee workforce that are changing the modern business environment in such a way that its influence will be irreversible. This “flexible workforce” powers much more than simple projects, professional endeavors, or corporate and strategic initiatives: it actively shapes how business is conducted across the world.
Flash forward to three years later:
- Non-employee talent comprises 41.5% of the average organization’s total workforce.
- Eighty-one percent (81%) of businesses state the desire to be more agile as their top challenge heading into 2019 (this was also the top challenge for organizations coming into 2018).
- The Gig Economy, consumerization, and revolutionary innovations (hello, artificial intelligence!) are all transforming how work is done.
- The quality/depth of talent is the most critical element in answering the “How does work get done?” question, according to survey respondents in the upcoming 2018-2019 State of Contingent Workforce Management research study.
- Political, economic, social, and other external factors all dictate an organization’s overall market strategy (more so now than ever before), and;
- The links between talent, technology, operations, and work all boil down to how “agile” an organization is in its quest for better business outcomes.
Businesses sit in an interesting position in 2018 (and on the cusp of the end of another decade): as competition and innovation continue to accelerate at breakneck speed, the very innerworkings of the organization are forced to shift and evolve in order to keep pace. The very crux of business agility is the ability to react in real-time to new and global challenges. The agile workforce, in relation, is the means to getting work done in this same vein, only with a focused eye towards superior business outcomes through the on-demand engagement of top-tier skillsets. “I like the term agile workforce as it encompasses all of the players in the ecosystem – including the workers themselves – and is a good way to describe how, both now, and in the future, companies and workers will need to adjust their strategies, tactics, plans, education, and more in order to thrive,” said Brian Hoffmeyer, SVP of Market Strategies at VMS provider Beeline. “For companies, agile workforce strategies will help them react quickly to changing business needs as well as to changes in whatever skills are the most in demand and thereby get their product – whatever it may be – out the door faster or better than ever before.”
Rich Gardner, SVP of Partnerships and Marketing at talent marketplace Catalant, agrees: “I think all of us are hearing more and more about the need for enterprises to “move faster” whether it’s in their efforts to innovate, avoid disruption, or just compete better. These business realities are driving organizations to become more agile and responsive, but that type of change is a tough one for a lot of companies. When we probe executives at these companies about why agility is so challenging, we often hear that they simply cannot find and engage the right skills–and talent more generally–at the right time to push their most important initiatives along.”
Perhaps the most interesting attribute to the next evolution of today’s contingent workforce is its incredibly strong link to the ultimate success of the enterprise. Businesses must not only keep up with the pace of innovation, but also tap into the revolutionary talent-led strategies that will dictate organizational success…or failure.
“The agile workforce is successful because it enables businesses to react swiftly to economic pressures,” says Mynul Khan, CEO of online staffing platform and workforce management solution FieldNation. “A company’s use of an agile workforce really is the difference between gaining and growing the business, or stagnating.”
Business agility is no longer the veritable “pipe dream” for businesses, but rather a true state of being that promotes real-time and dynamic responses to the new problems and issues that are brought about by the shifting marketplace. Here, an idea blossoms from both the growth of the non-employee workforce and the overarching desire to achieve agility: The path to the future is paved with an agile and mobile workforce that can be adeptly aligned to the evolving needs of the greater business. In fact, nearly 60% of businesses today are prioritizing their work-based requirements with available talent to drive superior business outcomes. Within this notion of looking towards the end result of a project (instead of up-front costs or similar concerns), businesses are pushing a talent-led approach in aligning critical needs across the organization with resources within its talent pool of both traditional and newer outlets of the workforce.
“As more businesses realize the need for agility, they must also consider the need for an agile workforce,” said Tyler Pearson, co-founder and CEO of digital staffing platform AmalgaNation. “The ability to keep their core resources focused on executing core business activities paired with the ability to select resources as needed to mitigate risk and jumpstart initiatives provides enormous value and a potential competitive advantage when squaring off against organizations that have not yet changed their way of thinking.”
Ardent Partners and CPO Rising is excited to announce the imminent publication of the 2018-2019 State of Contingent Workforce Management research study. Subtitled “The Pursuit of the Agile Workforce,” the landmark research report builds on many of the themes and ideas discussed in today’s article. Stay tuned for exclusive insights from the industry’s contingent workforce management guidebook and the opportunity to download it.
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