Why Contingent Labour is The Future of Work
Check out our guide below to find out why contracting and contingent labour represents the future of work in Ireland and around the world.
What Is A Contingent Worker?
Contingent Workers are those who provide services to an organisation but who are not on the payroll. This is an umbrella term that encompasses many types of workers including contractors, consultants, temps and advisers. Oftentimes, these people are brought in temporarily to address a specific project need.
The State of Contingent Labour in Ireland
Contingent labour is on the rise in Ireland. According to a 2018 ESRI report, contingent employment made up just 10% of the overall active workforce in Ireland between the years of 2011 and 2013. According to one study, 45% of Irish workers can now be categorised as contingent labour.
Why is Contingent Labour the Future of Work?
Prior to 2020, contingent workforces were trending upwards with many multinationals and large tech companies (such as Google and Facebook) leading the way. Contingent workforces are becoming increasingly mainstream, sectors that wouldn’t traditionally have used this model (e.g. engineers, accountants, architects) are now exploring this as an option.
The Impact of the Covid-19 Pandemic on Contingent Labour
The ongoing pandemic has accelerated uptake of contingent workforces with more and more organisations adopting this model. Research from Gartner has found that 32% of organisations are replacing full-time employees with contingent workers. So why is this?
In times of crisis, organisations need to be agile in order to weather the storm. Contingent workforce models can be easily scaled up or down. This gives organisations the flexibility they need in order to dynamically adapt to changing market conditions.
Cost savings have long been a key driver for companies adopting contingent models, and with the ongoing pandemic this has taken on even greater importance. Contingent models help to decrease costs by reducing the costs of hiring, payroll, and the management of employees. Download a copy of Berkley’s 2022 Contracting Rate Guides to benchmark rates today.
What are the Benefits of Growing Contingent Work for Candidates?
As our previous article about the benefits of contracting outlines, there are many reasons why workers may want to look into contingent work.
- These days, workers are no longer seeking a job for life. Contingent work offers greater mobility to move between a variety of jobs, projects and organisations.
- Contingent work gives candidates more control over when and how they work. This gives them greater freedom to take breaks if they want to travel, study or spend time with loved ones.
- As an increasing number of organisations implement contingent models, job opportunities for contingent workers will continue to grow.
- The mobile nature of contingent work means that contingent workers can quickly develop new skills.