With economic conditions changing rapidly, employers must be prepared for a more flexible workforce. This could mean offering flexible working hours, job-sharing opportunities, and other creative solutions that allow employers to remain competitive in the changing landscape.

FREMONT, CA: With the start of 2023, it's clear that the post-Covid world of work will continue to face unique challenges. The sustained growth of the contingent workforce and economic uncertainty make it crucial for employers to plan and prepare for the future. These trends will shape the contingent workforce landscape in 2023. 

The Year 2023 will Contain Uncertainty

After the last three years of twists and turns, the new normal remains a mystery. Contingent labor programs have both advantages and disadvantages.

On the bright side, executive leadership is taking notice of this flexible workforce's strategic value so that programs will receive more attention and funding. Contingent workers are already an essential part of many HR departments' holistic approach to their workforce, and this trend will continue.

In the near future, the elusive goal of "total talent management" will become a reality. Conversely, contingent programs need to scale and address the different ways contingent workers are sourced and managed as the usage of contingent workers increases. 

With increasing independent contractors filing for business ownership, outsourcing options, and those hidden silver medalists in ATS, contingent programs are set to expand.

Compliance should be noticed. Pay transparency laws and definitions of independent consultants are challenging to keep up with, but they must be addressed. This isn't going anywhere. States and cities will likely adopt different worker classification and compliance laws shortly. Beyond knowing how contingent workers want to be engaged, programs will begin to dig deeper into how they should be engaged for compliance reasons.

Success will Rely on an Omnichannel Extended Workforce Approach

The concept of contingent workers has evolved beyond "temps," and there is no one way to engage and manage them. Keep up with contingent workforce trends by tapping into all these possible pools of candidates. 

The options include hiring an MSP (Managed Service Provider), setting up a direct sourcing program, centralizing management of freelancers, creating an early talent program, or bringing professional services into a managed program. The most successful contingent programs explore, implement, and harness these different methods to engage talent. Companies that embrace innovation will become more competitive in the talent market as they embrace innovation.

Direct sourcing will continue to gain traction. Staffing Industry Analysts report that 35 percent of contingent buyers have direct sourcing programs, making up 3 percent of their spending. In just two years, almost 85 percent of the spending will come from direct sourcing. This method of talent attraction will remain strong for a while.

Integrated Technologies will Provide a Holistic Approach to Workforce Management

Buyer expectations continue to rise, and great digital experiences are becoming table stakes. Any vendor management system, or VMS, should have a full request to check the process as the foundation.

A VMS can also integrate with an AP system or an HRIS. This space is evolving from a simple "manage your vendors" approach to a more holistic extended workforce management model, which is exciting.

With advances in artificial intelligence, machine learning, and slick tools such as embedded analytics, buyers can manage their contingent workforces more efficiently. Combined with acquisitions and some new players, 2023 will see these tools continue to develop, which will help companies move toward total talent management.

Advanced HR programs leverage integrated systems beyond VMS, including  ATS, CRM, or FMS (the Alphabet Soup of HR Technology). As technology expands and new features are added to the products, the greatest wish in 2023 is that these tools seamlessly integrate into one system, possibly in 2024.

The Great Resignation, the Great Reshuffle, and the Great Resettling are many ways to describe how workers feel, search for jobs, and leave jobs. Contingent work isn't just here to stay; its trends indicate that its expansion and evolution will continue through 2023 and beyond.