How to maximize ROI with a contingent workforce?
The key priority of any business is to maximizing ROI (Return on Investment) is a top priority, and using a contingent workforce is no exception. A contingent workforce comprises individuals hired for a specific project or a limited period of time rather than as permanent employees. This type of workforce provides businesses with the flexibility and cost-effectiveness they need to achieve their changing workforce demands.
In this blog post, we’ll explore some statistics that highlight the benefits of a contingent workforce and provide tips on how to maximize the ROI of your contingent workforce.
The Growth of the Contingent Workforce
A contingent workforce has been on the rise in recent years. According to a report by the Staffing Industry Analysts, the contingent workforce has grown by 3.5% annually since 2010 and now represents over 40% of the total U.S. workforce. This growth is a testament to the benefits that a contingent workforce can bring to an organization, including reduced costs and improved flexibility.
Cost Savings with Contingent Workers
A key significant advantage of using a contingent workforce is the cost savings it can bring to your organization. According to a survey by Forbes, companies can save as much as 20-30% on labor costs by using a contingent workforce. This cost savings can add up quickly, especially if you have a large contingent workforce or use it frequently. In addition to cost savings, a contingent workforce can reduce the risk of overproduction or underproduction, helping you maximize your ROI.
Improved Efficiency with Specialized Skills
Contingent workers often bring specialized skills to the table that are not readily available within your organization. This can be a significant advantage when you need to complete a specific project or task quickly and efficiently. A study by Deloitte found that 69% of organizations reported an improvement in the quality of work produced by using a contingent workforce. By bringing in these specialized skills, you can maximize the ROI of your contingent workforce by completing projects faster and improving product quality.
Increased Flexibility with Contingent Workers
Contingent workers allow your organization to ramp up or down your workforce as needed quickly. This can be especially important in industries that experience fluctuations in demand, such as seasonal businesses. As per the survey by the Association for Talent Development, 72% of organizations reported an improvement in their ability to respond to changes in demand by using a contingent workforce. Using a contingent workforce, you can quickly react to changes in direction, reducing the risk of overproduction or underproduction and ultimately maximizing your ROI.
Risk Management with a Contingent Workforce
Using a contingent workforce can also help you manage risks associated with your workforce. For example, suppose a permanent employee is not able to work due to an injury or illness. In that case, you can quickly bring in a contingent worker to fill the gap, reducing the risk of losing productivity and revenue. Additionally, using a contingent workforce can reduce the risk of hiring the wrong person for a permanent position, as you can evaluate their performance before making a long-term commitment.
Measuring the ROI of Your Contingent Workforce
Finally, it is crucial to measure the ROI of your contingent workforce regularly. Measuring ROI can help you make informed decisions about the size and composition of your contingent workforce and identify areas for improvement. Some key metrics to consider when measuring the ROI of your contingent workforce include the cost per hour of a contingent worker compared to a permanent employee, the speed at which projects are completed with a contingent workforce, and the quality of work produced by contingent workers.
In conclusion, using a contingent workforce can bring numerous benefits to your organization, including reduced costs, increased efficiency, improved flexibility, and reduced risk.
By following the above ideas and strategies, you can maximize the ROI of your contingent workforce and achieve your business goals. Whether you are looking to meet a short-term need or provide a flexible workforce solution for your business, using a contingent workforce can be a valuable investment for your organization.
Infojini can also help by providing a range of services and solutions. By partnering with Infojini, you can maximize ROI with your contingent workforce and ensure that your organization is getting the most value from its investment in temporary, contract, or freelance workers.
Want to hire contingent workers for your company?
Get In Touch
A Guide to Contingent Workforce Management
This report covers all you need to know about
using talent intelligence to transform your
workforce strategy.
