Contingent Labor Leaves 2020 Behind: Future Benefits For Employers & Tech Talent
The reality surrounding Covid-19 dramatically impacted the flow of work for nearly every technology company. Many campaigns and projects were put on hold or required retooling until the dust settled.
Now, as the world re-learns how to cope with the pandemic, many brands are beginning to ramp up new engineering projects which can require fresh technology talent. However, uncertainty still hangs in the air making some companies reluctant to hire full-time employees.
The post-pandemic world is giving rise to new human capital strategies that discard old hiring structures. The result is greater dynamics and more challenges for the industry.
Contingent Labor Solutions
Technology companies frequently have intense surges of activity followed by relatively slower periods. For example, when developing a brand new application, significant engineering talent activity is required. Once the product has been developed and officially launched, the workload may dwindle as the foundation has already been built. Following product launch, the workload may soften as the developmental foundation has already been built.
Currently, the tech sector is feeling a labor crunch as the demand for talent has spiked, maybe since brands are reactivating. Recently, the annual Consumer Technology Association (CTA)® Future of Work Study surveyed 240 technology industry leaders. The study found four in five (80%) companies are needing more employees with technical skills.
The most in-demand skills in the survey were:
- data analytics (57%)
- software development (56%)
- project management (56%)
Tech leaders are also looking for workers with soft skills. The top soft skills they look for are:
- communication (85%)
- problem-solving (83%)
- critical thinking (83%)
Coming out of the pandemic, many brands are intensifying efforts and are highly considering contingent labor rather than hiring full-time Associates to mitigate costs and risk.
Benefits of Contingent Labor for Business
For employers, contingent labor enables a firm to fully staff a project for as long as needed. As this approach is more flexible than traditional hiring strategies, employers can guarantee the skillsets and capabilities that are required regardless of the duration of the project.
If this means a few months or a few years, the skillsets and capabilities needed for the project deliverable are covered through this flexible approach. Many organizations have adopted this approach to get projects going again in late 2020 and into 2021.
Other benefits of contingent labor include lower overhead employment costs since the cost burden of additional benefits (healthcare, 401k, etc.) is on the contingent labor human capital firm as opposed to the employer.
Workforce Benefits in Contingent Contracts
For contingent workers, a non-full-time agreement often provides significant benefits, such as:
- Higher financial compensation as employers save on overhead
- Opportunity to work with the latest tech stacks
- Ability to experience varying company cultures
- Ability to improve skills on the job for professional advancement
The reality is that workers are more accustomed to changing jobs frequently, and the market is adapting in new ways.
New Horizons for Tech Workers & Businesses
Today, the only thing for sure is uncertainty and there has been no better time than now to be in the tech sector as the job market is healthy and work is plentiful. No matter how you work it out, you’re bound to find a solution that fits both the employee and employer.
At Summit Human Capital, we understand and have solutions to the pain points of companies in their quest for A-Player technology human capital. Request a consultation and see how we make it a win-win for everyone!