Contingent Workforce Part III – Employees and Job Seekers

Researching the first two episodes in this series uncovered several startling facts. The size of the contingent workforce in large companies is much bigger than people, even management, realizes. The 3^rd Party Provider industry is projected for continuous growth, at least 6% and possibly even double digits this year as cautious employers bring in contractors and temps in lieu of hiring. Outsourcing is rampant and is also likely to increase. Most alarming of all is the inability of most so-called experts to predict how changes in healthcare laws and other political forces will impact the workforce. Opinions span the whole spectrum from the ultra conservative anti-government interventionists to the ones that drank the Kool-Aid and shrug off any concern or doubt. Meanwhile those in the middle are looking for data… real answers instead of pithy pious platitudes. We need facts and not more political rhetoric. The threat of unemployment is inextricably woven into this confusing tapestry and nobody knows which thread to pull next.

Planning a career is not as it used to be. Survivors of blood-cut downsizings in a company find themselves in positions of increased responsibility and no increase in compensation. In some cases benefits are carefully trimmed to the edge of compliance while employee contributions go up. If dwindling take-home pay was not enough to keep people awake at night, the ongoing threat of losing a job looms overhead like the Sword of Damocles. Keeping a bad job is preferable to losing it. HR professionals interested in building a collaborative culture and driving positive engagement need to keep in touch with these feelings and not shrug them off as occasional negativity. Forcing false enthusiasm around the campfire singing Kumbaya with HR is motivational blackmail. “Pretend that everything is OK or your worst fears may come true.”

The alternative to drifting with the tides is to actively consider possible courses of action and plan accordingly. Is there a contingent workforce job in your future?

• In many of the top Fortune 100 companies less than half of the workers are traditional full time employees and the rest of the jobs are outsourced to some extent. Planning to always be counted among those on payroll is losing its believability.
• Timing of the decision to jump ship may be critical. As ACA regulations begin to impact those companies who are co-employers managing contingent workers, costs will increase and obviously be passed on to their customers. The impact on cost effectiveness of hiring temps means that future demand will be uncertain.
• Unemployed citizens who want to penetrate that fog of finding full time employment would be wise to consider contingent work. As the period of unemployment increases, the probability of finding work decreases. A “temp” job is a job, but more importantly it is a foot in the door.
• Multiple contract or temp assignments add to the strength of the technical skills on a resume. Every experience gained and every accomplishment registered is a useful key to open future doors for employment.
• Many individuals are seriously thinking about going into the business of becoming contracted service providers on a corp-to-corp basis and forget the traditional desire for getting a salary and benefits. This is a great long term solution but should be done only with expert legal and financial advice.

Is there a Part IV to this series of articles? Not immediately, but the uncertainty of political, economic and environmental issues will change drastically over the year and beyond. The next installment may be in six months… or perhaps next week.

Also read:

• Contingent Workforce Part I – Already Bigger Than You Think
• Contingent Workforce Part II – The Company Dynamics
• Contingent Workforce Part III – Employees and Job Seekers (This)

 
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