The concept of flexibility has never been as important for the world of work as it is today. Businesses are realizing how much they have to gain from incorporating flexible staffing and contingent talent into their HR strategies, with the benefits ranging from cost efficiencies to quicker access to specialist skills.

Employees, meanwhile, are increasingly recognizing the professional, financial and lifestyle benefits that can be gained from freelancing, contracting and ‘gig’ working.

There has been plenty of research conducted and statistics produced to illustrate these trends and show the growth taking place in the flexible workforce.

If you’re looking to step up your use of contingent employees and thinking about how this approach will fit with your business, it’s worth considering some of the pros and cons of hiring flexible talent.

pro: access to specialist skills.

One of the biggest recruitment challenges many modern businesses face is identifying and acquiring the skills they need in the mainstream labor market.

Three-quarters (75%) of HR professionals experiencing recruitment difficulties say there is a shortage of skills among candidates, according to the Society for Human Resource Management.

Talent scarcity is particularly acute in certain key sectors, such as engineering and technical segments. The COVID crisis has driven up unemployment and increased the number of people looking for work, but businesses will still find it difficult to acquire the skills they need in specialist areas.

Research conducted in the EU has shown that existing workforce skills fall short of what is required for employees to ‘carry out their jobs at their highest productivity level’.

The ever-growing pool of freelance and contingent talent available in the flexible labor market can help your business access skills and experience that are difficult to source through traditional hiring.

con: potential lack of engagement

Temporary employees are undeniably a valuable source of skills, but they’re not a permanent member of your organization. It’s therefore understandable if you have some concerns about their overall engagement with the business and what it’s trying to achieve.

Do your contingent staff understand your long-term vision as an organization, and are they committed to helping you achieve it? These are valid questions to ask.

If key stakeholders within your businesses harbor these concerns, there are steps you can take to minimize the risks of flexible staffing.

For example, it’s important to make sure you’re avoiding common mistakes when onboarding your contingent employees. If you get this stage of the process right, you’re more likely to see positive results in the long run.

Another effective measure to engage your contingent workforce is to work on building lasting relationships with flex workers, potentially with a focus on bringing them onboard permanently, if that’s something both parties would be interested in.

pro: cost efficiency

Achieving maximum efficiency in human capital cost will always be a key goal for most HR departments, and engaging with the contingent talent market when you have immediate skills needs is a good way to achieve it.

It’s well-known that hiring a permanent employee is a considerable financial commitment, with costs like advertising the role, onboarding, training, salary and benefits to take into account. Companies also lose money and productivity while positions are left unfilled.

Bringing in temporary employers can help you make optimum use of your HR budget by ensuring you’re only paying for the skills and services you need, when you need them.

This can prove particularly important if you have short-term requirements - if you need specialist skills to complete a one-off project or additional staff to meet a seasonal spike in demand, for example.

A report by North Highland and the Economist Intelligence Unit showed that cost savings is the most common reason for organizations to use contingent talent.

Many companies could benefit from the short-term cost efficiency of contingent staff in 2020, as they look to get back to business and plug skills gaps caused by the COVID-19 pandemic.

con: less control

Temporary hiring is a good way to acquire the skills you need quickly and keep your human capital costs under control, but some HR managers might have concerns that using temporary employees will mean they have less control over their workforce.

Traditional recruitment and induction of permanent staff gives you the time to engage and build relationships with employees. You can work with new recruits to ensure they’re familiar with how the company works and what will be expected of them in their role.

While the onboarding process for contingent talent will certainly be different, it doesn’t necessarily mean you have to sacrifice control. It’s important to make sure any temps and contractors you hire will fit in well with your company culture and working methods. One way to do this is by looking at candidates’ work history to see how they’ve performed for organizations similar to your own in the past. 

You can also minimize risk by working with an experienced staffing partner offering in-depth knowledge of your sector and the local labor market.

pro: moving with the times.

pro: ,oving with the times

The way people and businesses work is changing all over the world. If you want to keep up with fast-moving trends in talent acquisition and workforce expectations, you need to be prepared to change how you find and hire workers.

Research has shown:

  • 76% of human capital leaders are making contingent employees a key part of their overall workforce strategy***.
  • Self-employed in the EU have higher levels of job satisfaction than the workforce as a whole.
  • 75% of corporate finance leaders see contractors, freelancers, and temporary employees as an important part of their company’s employment practices****.

Companies that don’t evolve and keep up with these trends are at risk of being left behind.

Randstad has compiled a list of stats that underline the relevance of the contingent workforce with insights and research from a range of  sources.

Download the list with the "7 stats that show the relevance of temp employees".


*Society for Human Resource Management.

**North Highland Research.

*** Labour market statistics at regional level by Eurostat.

**** Corporate Finance Leaders Worldwide Expect Uptick in Hiring and Modest Economic Growth by AP News.