Growth of Contingent Workforce

A workforce is emerging in which there are far more short-term working relationships. Companies are viewing work more in terms of specific projects with a distinct beginning and ending. Part-time employment is becoming much more common. In the U.S. this contingent workforce consists of approximately 45 million temporaries, self-employed, part-time, or consultants and has grown 57% since 1980. What this means is that more people will be looking for work in an increasingly unstable job market. Part-time and temporary employment opportunities will increase. This still only amounts to 1 to 2 percent of the total Workforce.

The number of employees has also fueled this. This is especially true of middle management, whose jobs were “rightsized” in the last recession. Many had to do whatever it took to pay the bills taking on consultant or subcontracting positions. The self-employed consultants/subcontractors have found it difficult to go back to a 9 to 5 position without wanting higher salaries and better benefits associated with it. Employers have found this to be a lucrative solution to hiring full-time employees with benefits.

The number of small businesses will continue to increase as new opportunities for entrepreneurs arise in response to the high-tech and service revolutions and as more individuals find new opportunities to experiment with changing careers.

This contingent workforce, as it is being called, will have far fewer managers. These highly qualified workers moving from full-time company employees to independent contractors, must be very sensitive to the potential threat they pose to the careers of the sometimes less qualified full-time company employees.

Working relationships are much more tenuous as an independent contractor than as a full-time employee. The independent contractor that poses a threat to a full-time employee can be let go at a moment’s notice.

Another result of the cost-cutting reengineering is that middle management ranks have been trimmed to the point that this traditional breeding ground for senior managers has been badly depleted. More companies will be going outside the company to fill senior management positions.

In doing so, they will often seek the services of executive recruiters. Thus, senior managers are well advised to develop a working relationship with recruiters, particularly those who recruit for their industry or profession.

With the rapidly changing labor market, workers must think of themselves as more entrepreneurial than workers of the past. Professionals planning to be in the labor market through 2010 and beyond should plan to be in business for themselves at some time.

Given this shorter term working relationship, workers should avail themselves of every opportunity to potential employers. Having a résumé constantly available online is a good way to make yourself known. If your worst nightmare is that your present boss will find out that they are out looking, blind résumés with inquires directed to an e-mail address offer a viable alternative. Remember that a well-written résumé may lead to a job interview, but then you must sell yourself. Show the prospective employer how you can “add value”.