More than half of global human capital leaders expect to transfer one-third of their permanent positions to contingent roles soon.
To become more agile and flexible in a changing economy, 61% of employers plan to replace up to 30% of their permanent positions with freelancers, gig workers and independent contractors, according to the fourth quarter Talent Trends report, a survey of more than 700 global human capital leaders by Randstad Sourceright. And they plan to do it in the next 12 months.
Nearly 40% of employers surveyed said they expect they will be able to reduce the impact of talent scarcity by having an integrated hiring strategy.
“Companies are increasingly embracing gig workers, and even robots, in their overall workforce to address the increasingly tight labor market in the U.S. and around the world,” said Rebecca Henderson, CEO of Randstad Sourceright, in a company release. “While in the last decade contingent workers have been viewed very differently as compared to full time positions, today’s companies are welcoming the opportunity to employ a more agile workforce, particularly as a greater number of gig workers embrace flexible work practices as well.
Nearly 70% of employers surveyed said the skills gap is widening and will create significant challenges in the near future, which is why a majority agree that all available resources should be considered to combat recruitment challenges.
The report also found that employers are investing more in training to meet the growing talent demand. Half of employers said they have increased budgets for reskilling programs in 2017, and 52% said they are investing in training and development technologies at moderate or significant levels.
“HR departments have quickly realized they can no longer stick to business as usual if they hope to hire top talent in the 21st century,” said James Stovall, Randstad Sourceright’s senior vice president of solution design. He added that by implementing an integrated talent approach — where permanent, contingent, independent and machine labor are engaged strategically — companies can improve their workforce agility by having access to the right talent at the right time.
- Talent scarcity: 69% of employers said the talent gap is widening and will create greater challenges in the near future, while 25% said they consider talent scarcity to be their largest concern.
- Contingent workers: 61% of human capital leaders expect to shift more of their roles to contingent workers in the next 12 months.
- Global workers: 74% of those surveyed believe the right person for the job may be an employee, contractor or contingent worker from anywhere in the world.
- Upskilling: Half of the employers surveyed said they are increasing their budget to invest in programs that help their workforce advance their careers through upskilling.