Two in Five Firms Use More Independent Contractors

A recent survey* of HR execs found that 41% have used the services of independent contractors over the past two years. This shows that companies are starting to re-think  the tactics they employ to align their workforce with their business objectives – and that they are also starting to enjoy the flexibility that hiring independent contractors provides. Contingent workers make it easy for companies to scale their workforce up or down to meet seasonal or project based demand.

However, it’s not just businesses that are initiating the change. It’s the American workforce itself. The two biggest groups of people in the U.S workforce today – the baby boomers and Generation Y – are they key drivers of the growth of the contingent workforce. Research found that 80%* of baby boomers said they planned to work as contractors past retirement. The same research also suggested  that Gen Y employees are likely to change careers approximately 10 times before the age of 40 – making contract work a very attractive option for trying out new career opportunities.

All in all, it looks like the contingent workforce is set to continue to grow - and be beneficial - to companies and workers for a long while to come.

* 1.) Right Management survey
* 2.)  Nielsen survey