About 50% of the world’s workforce is defined as "temporary." That means that half the working people on Earth work for companies on a temporary basis. You’ll often hear of these workers referred to not only as a temporary workforce, but as a contingent workforce or an external workforce. More specifically, they may be called independent contractors, freelancers, temporary employees, or even seasonal employees.
And the size of this external workforce is expected to grow dramatically over the coming years.
What exactly drives such a dramatic growth in the external workforce? Generally, it comes down to business necessity. Retailers, for example, often need additional workers to temporarily assist with a higher volume of customer traffic during holiday sales. Or a company could initiate a project that requires an expertise outside of its core competency. Or a team may need to temporarily fill a critical position so it’s work processes are not disrupted.
Ultimately, the reasons organizations use an external workforce are numerous, but with the rise of the gig economy and the need for flexibility and specialized skills, organizations need a streamlined and efficient way to manage those temporary workers.
Watch the video to see how organizations can meet the challenges of managing an external workforce.