The world of work is rapidly changing as more and more organizations expand into using contract workers. In fact, Intuit estimates that 40% of the American workforce will be independent workers by 2020 – including temporary employees and contractors. The same report also found that 34% of all tax filers last year were contract workers, indicating that a large portion of the American economy work for themselves or for services like Lyft and Instacart. So, why is the American economy seeing such a sharp increase in contract work?
All-inclusive Freelance Management Systems
New platforms called Freelance Management Systems (FMS), are enabling businesses to connect directly with contract workers across the world. While Uber connects drivers directly with riders, FMS platforms – like Field Nation – connect contract workers directly with businesses. With an FMS businesses can recruit and hire a specific skillset in a few hours, in practically any location. Not only are these systems allowing organizations to find, manage, and pay contract workers in one centralized place, but they are becoming a leading tool for managing work due to the shift toward a more flexible, and adaptable workforce.
The Ability to Scale
By implementing the use of contract workers businesses have the ability to scale their organization beyond their current demands. Compared to the constraints of a traditional workforce, contractors allow businesses to expand into new service offerings, scale-up geographically, and make sustainable growth choices. This new ability to grow and shrink with demand enables competition without full-time resources.
Speed and Efficiency
Advances in technology have increased the need for businesses to provide high-speed services quickly and efficiently. Fortunately for companies, contract workers thrive on producing high quality work and completing projects in the most efficient and effective way possible. Data collected from a recent study by the Blumberg Advisory Group and Field Nation found that response and travel times were lower for companies using contract workers than those using full-time employees – therefore resulting in increased efficiency. By using contract labor both businesses and contractors can accomplish work quickly and efficiently.
Filling Labor Gaps
Many companies realize a need for labor during high-demand times, but cannot afford to keep a full-time staff year round. With uncertainty around healthcare legislation and tight labor markets across the country, many organizations are looking to contract workers to fill staffing and labor gaps. By offsetting the use of W2 workers, contract labor provides companies the specific skill sets they need, when they need it, at a lower cost to their bottom line.
Overall, increases in contract work are drastically affecting the way we work. Freelance Management Systems and the ability to scale with demands give companies a competitive advantage over those who do not use the contingent workforce. The speed and efficiency of contract workers and their ability to fill labor gaps, provide organizations the opportunity to accomplish work that is efficient and cost-effective. These are just a few of the reasons why contract work continues to be on the rise.