Contingent Workforce Management Market Size, Share, Growth, and Industry Analysis, By Type (Software and Cloud-based Solution), By Application (SMBs and Large Businesses), and Regional Forecast to 2033

•   
•   
  

  Request a Free sample to learn more about this report

    

CONTINGENT WORKFORCE MANAGEMENT MARKET OVERVIEW

The global Contingent Workforce Management market size was USD 996.29 million in 2022 and is projected to touch USD 1137.42 million by 2028, exhibiting a CAGR of 2.23% during the forecast period.

The contingent workforce consists of workers such as temporary agency staff, independent contractors, Statement of Work (SOW) consultants, human cloud workers and various gig workers. As part of external staffing, the contingent workforce is made up of independent contractors, freelancers and consultants. Part of this sector consists of firms that offer services to individuals, for example, marketing agencies, law firms and companies providing IT services. Good working management of the contingent workforce can offer organisation unique skills, better flexibility and improve their responsiveness.

Increasing need for specific professionals, saving costs and agility in managing employees are driving growth in the Global Contingent Workforce Management industry. When a company has temporary workers, freelancers, independent contractors and consultants, it can manage its workforce by adding or removing staff when projects change. Helping organizations efficiently find, oversee and maximize the use of workers not on standard payrolls. Nowadays, technology such as AI, automation and analytics is used with these solutions to help manage visibility, compliance and costs in the entire workforce.  

COVID-19 IMPACT

Contingent Workforce Management Industry Had a Positive Effect during the COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Many companies adopted contingent labor during the COVID-19 pandemic because it allowed them to match staff levels to unpredictable economic conditions and requests. Firms used temporary workers and gig workers to help stay operational, without having to make permanent hires. The pandemic made clear the role of digital workforce management software when working remotely became regular. Although some companies stopped hiring, others, for example, healthcare and logistics, increased the need for contingent staff.  

LATEST TREND

Technological Integration to Drive Market Growth

Artificial intelligence is changing the contingent workforce management market by offering a chance to upgrade operational methods and solution features. AI is predicted to introduce many new opportunities for businesses to expand their markets and improve their solutions. They provide benefits during all key moments of using a contingent workforce, including sourcing, matching to jobs, managing performance and assuring quality. The AI used in managing the contingent workforce comprises algorithms for matching workers with the organization, systems that automatically keep an eye on performance and technology that helps forecast staffing needs according to key indicators.

•   
•   
  

  Request a Free sample to learn more about this report

    

CONTINGENT WORKFORCE MANAGEMENT MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Software and Cloud-based Solution

• Software: Produced from buckwheat grown without synthetic pesticides, herbicides, or genetically modified organisms. It adheres to natural farming requirements and often appeals to fitness-aware customers looking for natural and environmentally pleasant alternatives. The growing call is due to increasing cognizance of gains from natural food, choice for non-GMO products, and a shift towards sustainable agriculture.
• Cloud-based Solution: Made from conventionally grown buckwheat that can be treated with synthetic chemical compounds during cultivation. It is normally more widely to be had and regularly priced to decrease than organic alternatives. It continues to be famous because of its lower fee and broader availability, catering to a wide variety of purchasers and meal applications.

BY APPLICATION

• SMBs: Consumers are drawn to the benefit of purchasing Contingent Workforce Management online, where they can get admission to an extensive range of manufacturers and product types, including organic and uniqueness options. Online stores often offer aggressive pricing and bulk purchase reductions, appealing to fitness-aware consumers and those with nutritional regulations. The expansion of digital price structures and home delivery offerings has further facilitated this trend, making it less complicated for purchasers to get entry to the flour from the comfort of their homes.
• Large Businesses: Convenience shops have come to be a growing channel for Contingent Workforce Management because of their accessibility and the increasing call for short and clean buying alternatives. These shops cater to purchasers seeking out on-the-spot or small-amount purchases, supplying Contingent Workforce Management along with different ordinary items. Although the selection can be extra restrained compared to different retail channels, the benefit store format appeals to those looking for brief access to health-oriented merchandise.

MARKET DYNAMICS

DRIVING FACTORS

A factor in the Contingent Workforce Management market growth is due to the strong potential to reduce costs. Organizations using contingent workers can significantly decrease their daily expenses using different options. It is not required for organizations to develop in-depth training for their permanent staff because contingent workers can take care of the required tasks. Employees of the contingent workforce don’t need health insurance, paid time off or added retirement funds provided by the company, making overhead costs lower.

Workplace Flexibility to Expand the Market

The trend toward more flexible workplaces is considered an important factor driving the market for both employers and employees. Many current workers like the idea of flexible schedules so they can achieve a better balance between work and life. The pandemic rocketed this preference, so now many workers look for roles where they can work from home and adjust their hours. For organizations, hiring a contingent workforce makes handling the workforce more flexible. Being adaptable, businesses can add more staff when the economy is strong and cut back when the economy weakens, without all the problems that come with employment changes for permanent workers.

RESTRAINING FACTOR

Integration and Organizational Cohesion to Potentially Impede Market Growth

Trouble linking temporary workers to the organization’s main system is a key issue in implementing contingent workforce management. Many times, contractors find it harder to be part of a company’s culture, group work and general communication. This problem often reduces their speed at work and negatively affects the work they do alongside others. These jobs bring unique psychological issues that can make things harder. Many agencies find that temporary workers feel less motivated than employees who are hired permanently, because they think their jobs are less stable and they are excluded from important company benefits. Because of this morale issue, employees may lose the drive to work on company goals, which can lower work quality and result in less productivity.  

Evolving Work Models Create Opportunity in the Market

Opportunity

The market for managing contingent workers keeps adapting to new ways people work and what they want. The pandemic has made hybrid work arrangements more common, so now organizations need new solutions for their workforce management. Such new models require using more advanced ways to manage employee engagement, performance and how they are integrated. Digital workflow optimization is now a major area for companies aiming to improve processes among distributed teams. New capabilities for collaboration, planning resources and instant communication are being added to the mix in contingent workforce management. They make it possible to take care of contingent workers in any location and with every arrangement.

Commitment and Reliability Concerns Could Be a Potential Challenge for Consumers

Challenge

Temporary employee situations, by nature, often lead to commitment issues that organizations must handle. A lack of organizational commitment in contingent workers can result in trouble fulfilling important aspects of the business. The reason for this gap is that employees do not stay with the company long enough to build strong loyalty, because the job market doesn’t often provide career stability. There are reliability issues that go beyond loyalty to include workforce consistency.

•   
•   
  Request a Free sample to learn more about this report

    

CONTINGENT WORKFORCE MANAGEMENT MARKET REGIONAL INSIGHTS

• NORTH AMERICA

The North American market for managing the contingent workforce is driven by both the maturity of its labor market and the need for smooth operations. In the US and Canada, some companies hire contingent workers to deal with a lack of skills, demand that changes by season and the hope of saving costs, with modern workplace technologies helping to organize staff. The regulations and focus on diversity and inclusion across the region affect how companies manage their workforce, as changes in demographics increase the pressure for new ways to get and keep workers. The United States Contingent Workforce Management Market is shaped by changes and non-standard work, including contract, part-time and gig jobs, which play a key but often overlooked part. Even though many online platforms exist for finding contract work, the majority of contingent jobs are still the more traditional kind.

• EUROPE

The management of Europe’s contingent workforce is guided by tough labor rules, great concern for workers’ rights and respect for equality in the workplace. Companies in Europe are using contingent labor to adjust their workforce for changes in the economy, but need to overcome difficult compliance rules in each nation. The labor pool is shrinking as workers get older and have fewer children, which means businesses need to change their thinking about recruitment and hire from a wider range of people.

• ASIA

Economic growth, changes in technology and a large group of different workers are leading to fast growth in Asia Pacific’s contingent workforce management industry. Firms in India, China and Southeast Asian countries are using contingent workers to get needed skills, run operations smoothly and control costs in changing business conditions. High numbers of migrants, differences in regulations for workers and a major push for education help the region cope with economic changes and stop qualified people from leaving. The growing trend of working together across borders and using new technology is a big driver in the market.  

KEY INDUSTRY PLAYERS