Though our country’s economic future remains uncertain due to COVID-19, businesses are rising to the occasion pivoting their operations toward a contingent workforce to adapt to every twist and turn that the pandemic has thrown them.
For many companies, adapting means securing the right talent at the right time. To do this, firms may choose to engage in co-employment arrangements. Co-employment or contingent employment is where a contract employee works for both a business and a staffing agency concurrently. Co-employment arrangements allow busy companies to provide co-employees’ duties, day-to-day schedules, and expectations. Simultaneously, the staffing agency handles personnel matters such as onboarding, payroll, sick leave, and benefits.
Though much remains uncertain as we head forge ahead in 2021, it’s clear that organizations are evolving and adapting to the new “normal.” Here’s what to expect regarding the contingent workforce.
The Top Contingent Workforce Trends For 2021:
With a large pool of talent looking for work, 2021 is the perfect time to secure top-tier employees with the proper recruitment strategies, like a talent pool. A talent pool is a database of potential job candidates that may be a good fit for your company. This pool will help your firm find suitable candidates, reduce talent acquisition costs, and speed up the entire recruitment process.
Contingent workforce laws are continually changing, and to further complicate things, each state has its own unique rules. For example, in 2018, California introduced a new law, Assembly Bill 5, or the “gig worker law,” which required companies to reclassify contingent workers to full-time employees. Because contractors were reclassified to full-time employees, they are now eligible for benefits and protections generally afforded to full-fledged employees only. Laws like this illustrate just how important it is for businesses to stay up to date with the latest ballot measures.
The pandemic has shifted many cubicle workers to kitchen table workers for the sake of public health. All of this home time has blurred the lines between work and personal time. As that line continues to blur, employees expect companies to emphasize and encourage work/life balance.
Employers that offer flexible time-off provide extra incentive to interviewees looking to land a contract position. Field Nation’s 2016 Freelancer Study concluded that 55% of freelancers became independent contractors because they wanted more flexibility and balance.
Expect restrictions on non-US workers to get tighter this year with more restrictions on foreign-worker visas in the US. Though staffing agencies may deal with some immigration issues, companies should recognize their dependencies on foreign workers and ensure a backup plan if any problems arise.
Contingent Workforce Classifications
The use of independent contractors will only increase in 2021, so businesses should expect legislation in the US at the federal, state, and even local levels to register and track these workers. Enforcement will also increase to recoup potential lost tax revenue.
By working with an experienced team of professionals to manage your contingent labor, you can rest assured knowing your risks are being reduced and handled daily. NexusCW keeps up to date with the latest legislation, compliance to help you work your contingent workforce program properly.