Happy Black freelance employee speaking to client on mobile phone

Employers plan to increase the use of contingent workers in upcoming years, according to a new report released by MBO Partners. The average company reported that contingent labor accounts for 28% of their workforce, and nearly seven in 10 (67%) expect their use of contingent labor to increase in the next 18 months.

The survey found that for the majority (82%) of organizations skilled contingent workers make up half or more of their contingent workforce. The top reasons for using contingent labor were as follows:

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  • Meet temporary workload needs (38%)
  • Boost productivity (35%)
  • Get tasks done more quickly (33%)

Only a small percentage (14%) reported using contingent workers to save money.

On the other hand, this workforce doesn’t come without its share of challenges. The top pain points include:

  • Ensuring consistency of work quality (30%)
  • Finding/hiring contingent labor with the skills we need (30%)
  • Get tasks done more quickly (27%)

The majority of companies reported either actively using (60%) or experimenting (28%) with direct sourcing for contingent labor. Additionally, most are planning to increase their use of direct sourcing during the next 18 months (68%) and 5 years (78%).