Most Companies Will Use More ‘Gig Workers’ Over Next Five Years

• 60% of companies surveyed expect to increase use of contract labor
• A semi-permanent workforce is becoming the norm

Company decision makers indicate they are increasing their reliance on gig workers, with more than 60 percent growing their use of contract labor over the next five years, according to a new survey. Organizations site the top motivations for temporary workers as cost savings, agility and project-specific needs.

The survey polled executives at 210 companies in the U.S. and U.K. with 2,000 or more employees. It found that gig help makes up 20 percent or more of the workforce at nearly 60 percent of organizations surveyed.

Jeff McMahon, managing director at North Highland, noted that, “Market disruption requires new ways of thinking about your workforce, and gig talent pools offer greater flexibility and cost savings. However, companies are challenged with how best to manage gig workers to fit with their processes, culture and management workload. As organizations navigate the art of onboarding and integrating temporary help, they are finding the benefits more than offset added risk and supervision.”

Sixty-three percent of company respondents strongly or somewhat agree that their organizations cannot meet strategic objectives without gig workers. Areas that utilize temporary help most frequently include logistics and delivery (50 percent), manufacturing operations/production roles (45 percent), customer experience/engagement (39 percent) and information technology (39 percent). The most common model for integrating gig workers is to assemble them into teams managed by a full-time employee.

The choice to use an OnDemand workforce flows from mounting business challenges. Respondents indicate they are under pressure to increase workforce productivity (79 percent) and reduce labor expenses (67 percent). Moreover, workforce flexibility is increasingly important with nearly three-quarters (73 percent) of those surveyed undergoing some type of transformation and two-thirds being forced to adapt to a more volatile business environment.

The advantages that an on-demand workforce brings, combined with progress in recruiting, onboarding and integrating temporary help, ensure that the gig workforce is here to stay. Only one percent of respondents reported having no formal workforce augmentation strategy.