Large US companies plan to increase their reliance on a flexible workforce

Did you know that as of 2016, the independent workforce in the US. stood at 55 million people? This number has grown astronomically during the two years of the Covid-19 pandemic. Most businesses rely on these statistics to structure their model of engaging employees. Most of them are constantly reviewing their work models and structures to accommodate the changes. The most significant of these changes have been in the workforce. More and more large US companies are looking to tap into the ever-growing flexible workforce. A flexible workforce has been hailed as the future of work.

One may ask why a flexible workforce. A flexible workforce is a group of multi-skilled laborers that can be increased or reduced according to prevailing needs. Contract workers, freelancers, and contingent workers fall in the category of a flexible workforce. This article analyses the facts and breaks them down to help understand why the large US companies are seeking to increase their reliance on a flexible workforce.

The traditional workforce has come a long way in getting us where we are today. However recent events such as the Covid-19 pandemic have made it clear that there is a need for companies to diversify their workforce. Most US companies have seen sense and now plan to increase their reliance on a flexible workforce moving forward. This is not to say traditional employment will be done away with. However, having a flexible workspace policy will be a welcome move by persons in the traditional employment model. Some of the reasons why large us companies plan to increase their reliance on a flexible workforce include

Increase Employee Retention Rate

The American job market has witnessed record high exits as many Americans continue to resign from traditional employment to take on more flexible jobs. This has left large US companies with no option but to make major hiring decisions to accommodate a flexible workforce. Besides bringing in a new flexible workforce such as freelancers and contract workers, these companies must also revise the terms of engagement with their current employees to come up with flexible schedules. This is to empower more workers working remotely resulting in higher employee retention rates.

Moreover, this move is important in accommodating employees who moved away from their job locations during the pandemic to work remotely. They are still part of the company and have a lot to offer in the running of the company.

Fresh Talent

Traditional employment has run out of ways to acquire new ideas and talent from employees. Large US companies require to tap into the talent and passion of new workers. These qualities are predominantly found in a flexible workforce that involves contract workers, contingent workers, and freelancers. This is because most freelancers engage in tasks they are passionate about or where their expertise lies. These companies’ planned reliance on fresh talent. This move is likely to improve the performance of the companies and fast-track the realization of the set targets. Dealing with a flexible workforce eliminates geographic constraints giving employers access to a global pool of talent.

Operational Costs

Most large US companies suffered extensive financial setbacks during the pandemic. This is because, despite closing down or slowing down operations, most still had to part with the salaries and benefits of the employees who were engaged in the traditional employment model. This led to most companies reviewing downwards their running costs. Increasing reliance on a flexible workforce has been identified as an efficient way to save spent on salaries and remuneration in the traditional employment models. A flexible workforce can work from anywhere and on flexible schedules. This eliminates the need for large office space, commuter allowance, health cover, and insurance for employees engaged in the traditional employment models. Increasing reliance on a flexible workforce will allow large US companies to cut down on expenditure and maximize profits.

Increase Productivity and Loyalty

The goal of any company is to constantly grow its bottom line. This is realizable by empowering employees who are the main drivers of these goals. Employees accorded flexible schedules. Hiring freelancers for short-term tasks lighten the workloads of regular employees. Furthermore, employees feel motivated and appreciated and develop a sense of inclusiveness when working through flexible schedules and remote work positions.

The Covid 19 factor

At the height of the coronavirus outbreak in 2020, the workforce of most companies was most affected. No one expected it and even worse no one was prepared for it. A majority of workers were forced into remote work models. Most experienced professionals who lost their jobs have ventured into freelancing, and contract jobs. The rest underwent a career change ending up in other sectors of the economy. Relying on a flexible workforce provides an opportunity to obtain the best in terms of experience. It has emerged that most of these workers working remotely are now reluctant to resume full-time office work. There is a growing preference among workers to maintain this statuesque and most US companies are inclined to agree and conform to what their workers need.

Nature of Tasks

Companies not only in the US but globally find themselves in need of employees with a specific skill set to complete tasks at hand. These companies resort to engaging a flexible workforce, specifically freelancers or contract workers to handle short terms tasks. A flexible workforce can operate alongside regular employees. If and when large companies implement this move, regular workers will continue handling the regular tasks uninterrupted.

Conclusion

Flexibility is the key to navigating tough economic times. Working remotely or in a hybrid model has been gaining traction among large US companies since it provides flexibility. More companies not only in the US but also globally are working to find a way to bring up their bottom line while cutting down on operation costs post-Covid-19. Relying on a flexible workforce will be effective in achieving both. Moreover, increasing reliance on a flexible workforce is also about staying ready if ever another pandemic ravages the world.

Also Read – https://blog.30mins.com/how-to-begin-your-freelance-journey-on-30mins-com/

Facebook – 30mins.com