As the economy grows increasingly diversified, to keep up with demand and cut down on unnecessary spending, manufacturing businesses are increasingly relying on contingent workforces. These employees provide flexibility and keep businesses competitive in their respective industries.

What Is a Contingent Workforce?

A contingent workforce is a labor pool where employees are hired as needed, in a non-permanent capacity. They are often brought on during labor disruptions to maintain production as well as during times of regular business operation. In any case, they provide companies with a number of benefits that aren’t possible with regular full-time workforces, including:

The ability to increase and decrease labor Businesses can bring contingent workers on when production is in high demand and taper them off during times of the year when production isn’t as high.  

Business continuity during labor stoppages Strikes and other forms of labor stoppages don’t have to ruin businesses. The utilization of contingent workers allows companies to persevere and continue to meet consumer demands.

Saved time Utilizing a contingent workforce often means outsourcing some HR-based tasks to independent contractors. Some companies representing these temporary workforces, such as Strom Engineering, will handle those tasks for you, freeing up time and internal resources.

Cost Savings The ability to scale up and down, as mentioned earlier, is an obvious benefit. That includes only having to pay employees when they’re doing the work. When it comes to contingent workers vs direct hire, permanent workers often require paid downtime when production demands aren’t as high.

According to a 2015 study from Deloitte, 51% of people surveyed from corporate HR indicated their need for contingent workers would only increase in the coming years. Therefore, contingent employees are only growing in terms of demand. Not only that, but labor pools feature a wide range of employees with diversified job skills, giving businesses in the manufacturing sector plenty of options to choose from.

To learn more about the benefits of contingent workforces, contact Strom Engineering today. For more information on how temporary workforces can help, read our other post, Labor Dispute Preparation 101: How Temporary Staffing Can Help.