Use of Contract Talent will Continue to Grow in the U.S.
According to new research, the segment of the U.S. workforce that includes contract workers, such as consultants and independent contractors, is growing at more than twice the rate of traditional employment. This will have far-reaching effects on the workplace and will require business executives, human resources professionals, and their talent suppliers to collaborate in order to maximize their investment and manage contract talent strategically.
The study, which was done by global professional association and think tank Human Capital Institute (HCI), closely examined the state of Contract Talent in U.S. organizations. Conducted in late 2008, the wide-ranging research included a survey of several hundred HR leaders, from an equal number of organizations, followed by in-depth interviews with a selection of HR executives from across the nation.
Contract talent is defined as contractors, consultants, freelancers, temporary help, interim executives and others who are not part of an organization’s full-time or part-time workforce - a group that currently comprises almost one-third of the total U.S. workforce.
More than 90 percent of organizations surveyed in the study reported that they use contract talent. Additionally, 34 percent said that their use of contract talent has increased in the past three years, while fewer than 20 percent reported a decrease.
Looking forward, 85 percent of respondents believe that their use of contractors will remain about the same or grow over the next three years. The composition of the contract workforce is also changing. More than half are skilled technicians, specialists and professionals engaged in core and critical work for organizations. This is clearly the segment where M Squared Consulting fits in.
It shouldn’t surprise us that identifying high-quality contractors was the number one challenge cited by survey respondents. Though human resources and talent professionals are usually tasked with identifying, screening, hiring, managing and engaging traditional employees, they seldomly take the lead in contract talent management. Often, these tasks are left to individual hiring managers, or left to procurement and purchasing professionals who excel at cost control but lack the training and expertise required to acquire, leverage, and manage top contingent talent.
The vast majority of organizations see contract talent management as a strategic activity that can enhance competitiveness and profitability, all the way to the executive level. By partnering with innovative firms like M Squared Consulting, client companies can confidently gain access to top project professionals. We make sure that consultant experience and background match what the company needs, that they are thoroughly screened and accessed, and that they deliver the results promised.
