Today’s fast paced world is getting faster, with the adoption of AI and tech enabled talent pools becoming more prevalent in many industries. We are now seeing the emergence of the workforce of the future. Workforce trends are starting to show just how much the workforce has changed in 2020 and how they will continue to change in 2021.
Whatever industry you are in, a significant percentage of your workforce will be made up of contingent workers throughout 2021 and the coming years. While everyone is focused on ‘recovery’ and adopting new ways of operating and managing their workforce, there are certain contingent workforce trends that will continue to impact your company in 2021. In this article we’ve listed 3 contingent workforce trends to be aware of.
1. Contingent Workforce Classification
In the United States, Canada and around the world, governments are clamping down on misclassification of workers. Most recently, we are seeing proposed changes to legislation and worker classification in the United Kingdom with IR35, Spain, Australia, as well as the United States at a Federal and State level. Companies and individuals are being targeted in order to recoup lost revenue in taxes.
In California, the introduction of the AB5 bill, means that certain contractors have to be reclassified to employees. The change in classification, means those workers are now eligible for benefits and protections generally afforded to full-time employees.
With the ever changing employment laws, it is imperative for companies to stay on top of the ever-changing legislation. If not adhered to, non-compliance may leave your company exposed and at risk. Misclassification can be costly in terms of fines and penalties.
Talk to CXC about our robust compliance platform that ensures workers are correctly classified.’
2. Talent Pools
In order to keep up with the changing workforce environment and remain flexible, many companies have turned to the contingent workforce, to find and engage the best talent. Now that businesses are starting to re-open, many candidates are also looking to get back into the workforce. Creating a talent pool will help with finding the right person for the job. It can also help to reduce costs and streamline the hiring process by reducing time to fill. Having pre-qualified workers in your talent pool gives you a potential database of job candidates that may be just the right fit for your role or company.
CXC’s proprietary platform CXC Comply, enables smooth and compliant onboarding for workers, wherever they are around the world. CXC carries out the vetting, including right to work checks and full onboarding. You identify the talent, we do the rest.
3. Global Hiring
Workforce trends show that there has been an explosion in remote working and global hiring. There has been an increase in demand for talent around the world. A higher percentage of executives now plan on hiring more contingent workers after the pandemic than they did before. Companies are looking outside their local talent pools, to fill their roles. The increase in online talent platforms makes it easier now for companies to find and hire the right talent anywhere in the world.
The world has become smaller and more interconnected. While the use of recruitment technology and freelancer platforms has opened up the world of global hiring, companies still need to be ensure they adhere to local labor laws in the country where the worker is performing the work and avoid some of the common contingent workforce mistakes.
As more companies in the United States and Canada look offshore to engage remote workers to fill their talent requirements, there are certain protocol every company should adhere to when engaging foreign independent contractors.