Today’s post is written by Ivy Ray, Account Manager at SafeSourcing Inc.
Temporary worker demand is rising. When Baby Boomers retire, organizations will lose a lot of talent. Retiring Boomers are going to be hard to replace because Generation X (born between 1965-1980) is small, and because Generation Y has a different concept of how they want to work. Gen Y (born between 1981-2001) is more technologically and geographically mobile. They value flexibility, which project-based work allows.
Start-ups and small businesses would normally utilize freelance workers but increasingly, larger companies are using online freelancers, not to replace their core workforces, but to complement them usually for special project work. There are a rising number of freelance positions, which typically lack benefits and other protections that come with being a full-time employee. Platforms like Upwork, Freelancer, and Guru are just a few of the multiple online freelance marketplaces which benefit both the freelancers and the corporations hiring them.
Freelancers now make up over 35% of the U.S. workforce and companies are always looking to outsource and work with them to meet their business goals. Freelance workforce growth is accelerating and has outpaced overall U.S. workforce growth by 3x since 2014, according to Stephane Kasriel, CEO of Upwork.
The use of freelancing platforms could disrupt the way workforces are organized. For corporations, there are coordination costs and other challenges that come with managing both an internal workforce and interfacing with an external one. (Forbes)
The rise of temporary workers is a workforce trend that is here to stay. According to the U.S. Bureau of Labor Statistics, temporary workers make up 19 percent of all new jobs in the U.S.
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