K C Gauldine interviewed Bill Evans, of Knowledge Services, a workforce management solutions company headquartered in Indianapolis serving government and commercial clients. As Vice President – Professional Services, Bill is responsible for account management and delivery within Knowledge Services’ Government & Commercial Programs.
Gauldine:
In 2014, temporary employment grew 7%. The Harvard Business Review projected that contingent labor will make up 25% of the global workforce by 2020. As a Master Services Provider how would you respond to this information?
Evans:
These numbers are right in line with the growth we are seeing in our client base. Legislation has had an impact on this growth. As the Affordable Care Act was being rolled out in the last year or two, it was raising a very high concern with our client base. As a result, we have seen a trend of contingent staffing growing as our clients determine their strategy regarding supplementing their full-time existing employee base with contingent staffing to back fill their open permanent positions. The ACA has been a hot button from a strategic and consultative position with all our clients. When an MSP is in place, it can be easier for clients to get the quality resources they need since the MSP can provide the front end services and temporary staffing that can be converted into full time staff if needed.
Gauldine:
How do your clients view a flexible workforce as critical to achieving overall business objectives?
Evans:
I would fully agree that a flexible workforce is critical to overall business objectives. To best support our clients, we need to partner with them regarding their enterprise-wide business goals and strategy as it relates to getting all aspects of the work done. Not only are we seeing an increase in the contingent model, but we are definitely seeing an increase in the project side, statement of work, or the deliverable and milestone work as well. Contingent labor is now being looked at as a more strategic aspect of setting business goals rather than just a seasonal or short term need.
Gauldine:
How have the slow jobs recovery numbers related to the increase in contingent labor?
Evans:
We are still coming off the recession. Our clients still don’t know where the economy is going. Even though the economy is stronger than it was years ago there is still a hesitancy to just go out and hire full-time employees. This has had a greater impact on our government clients. Because of what transpired in the later part of 2008 and 2009, the decision makers who drive business goals and workforce planning, whether it be government or commercial, have definitely become more strategic as it relates to how are we going to get work done in the short term and long term.
Gauldine:
The role contingent staffing has played in a company’s workforce strategy since 2009 has changed significantly. Corporate leaders have recognized the power a flexible workforce provides in reacting more quickly to economic shifts and limit the potential economic harm from a deep downturn.
A special report published by labor law firm Littler Mendelson in 2009 predicted that contingent labor could rise to as much as 30 to 50 percent of the U.S. workforce in the future. Health care is still the biggest stumbling block keeping more workers from joining the contingent ranks.
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K C Gauldine is an accomplished leader with thirty years of C-level experience in business, social enterprise, entrepreneurial and nonprofit enterprises.