How to leverage the contingent workforce.
Learn how contingent talent is reshaping modern workforce strategies and how to best manage them for greater flexibility and resilience.
Contingent workers have traditionally played a supporting role, stepping in to help organizations manage short-term projects or bridge temporary gaps on their teams. But that’s changing. As businesses face greater volatility and an increasing need for agility, contingent talent is becoming a planned, strategic component of workforce design.
Several forces are driving this shift. Companies are experiencing record levels of high-potential voluntary turnover—75% of industries saw an increase over the past year. At the same time, many leaders are struggling to keep up with changing skill demands—just 32% say they have a clear view of current skills within their organization, and fewer than one-third feel confident they have the capabilities needed to succeed in the future.
With new work models emerging and more professionals pursuing independent career paths, the workforce has never been more complex. Relying solely on traditional hiring is no longer sustainable, and leveraging the contingent workforce to manage risk and build resilience has become not just an advantage but a competitive necessity.
What is the contingent workforce?
Contingent workers are hired by an organization without being added to its permanent, full-time staff. They’re typically engaged on a temporary, contract, or project-based basis, and their roles can span a wide range of functions and specialties.
What makes the contingent workforce so valuable is its flexibility in engagement. Whether it’s to meet seasonal demand, fill short-term skill gaps, or accelerate a specific project, contingent hiring empowers organizations a way to stay nimble and meet evolving demands without the longer-term commitments required for traditional hires.
Key types of contingent workers include:
Gig workers: Hired for very short-term and/or task-based assignments, such as delivery drivers or ride-share operators.
Freelancers: Independent professionals who offer specialized services such as writing, design, or development, usually to multiple clients on a contract basis.
Independent contractors: Self-employed individuals contracted to perform work for a business without being part of the formal employee headcount.
Consultants: Subject matter experts hired to advise or execute on strategic initiatives, often for a defined scope and timeline.
Temporary staff: Workers employed through staffing agencies to fill short-term roles, frequently covering for leave or supporting seasonal demand.
Today, contingent workers make up more than one-third of the global workforce, and that number is expected to reach 60 percent by 2031. They range from creatives and marketers to engineers, project managers, supply chain experts, and IT or operational support and provide both range and depth to complement full-time teams.
While individual contingent workers still fit the traditional definition, contingent hiring as a whole is now fully embedded in the way companies design their workforces.
Benefits of leveraging the contingent workforce.
As more organizations integrate contingent workers into their talent strategies, they’re finding value that goes well beyond short-term coverage. When planned intentionally, contingent talent empowers companies to move faster, adapt to change, and strengthen overall resilience. These are some of the key advantages:
Workforce flexibility.
When business priorities evolve quickly, contingent talent enables organizations to expand or contract their teams without disrupting momentum. This kind of flexibility is especially valuable in scenarios such as new product launches or seasonal demand where short-term support can be deployed and adjusted as needed.
Specialized expertise.
Some business challenges require depth over duration. Contingent workers deliver targeted capabilities such as system deployment, compliance consulting, or regional market expansion that may not be available internally but are not required permanently.
Strategic cost alignment.
Integrating contingent talent empowers organizations to direct resources where they can create the most impact, whether it’s filling project-based roles that don’t require permanent hires or bringing in interim experts to close short-term knowledge gaps and avoid costly delays.
Operational velocity.
Contingent professionals work across a variety of industries, business models, and company cultures. This cultivates a unique ability to adapt quickly to new environments. Their readiness enables more rapid onboarding and reduces ramp-up time, helping project teams maintain momentum and make faster, better-informed decisions.
Organizational stability.
During periods of transition or disruption such as mergers and acquisitions (M&A), restructuring, leave coverage, or unexpected turnover, contingent talent can be key for maintaining continuity. They keep work moving and retain key knowledge while teams adjust to new leadership or organizational change.
How to build a contingent workforce strategy.
As contingent talent becomes a larger part of the future workforce, organizations need a clear strategy to manage it effectively. Without structure, even the best contractors or consultants can get lost in disconnected processes. A strong contingent workforce strategy creates alignment, clarifying where these roles add the most value and how they can be best managed.
1. Identify workforce gaps and opportunities.
Start by looking at where your organization already leverages contingent workers and why. Are certain roles hard to hire for permanently? Are specific projects, seasons, or initiatives driving a need for outside support? Meet with department leaders to gather real examples, then use workforce data to spot patterns. Document where contingent roles are working well today and where they could be used more strategically.
2. Align internal ownership and workflows.
Contingent workforce management usually touches multiple departments. Define who handles sourcing, onboarding, compliance, budgeting, and reporting. Make those roles visible, especially to hiring managers, so the process doesn’t stall. If possible, designate a point person or team to oversee governance and keep contingent work in line with internal policies.
3. Embed contingent roles into workforce planning.
Use workforce planning cycles to anticipate when and where contingent support will be needed. Instead of waiting until capacity becomes a problem, build simple templates or prompts into your planning process so managers can identify contingent needs early. Forecast demand using past usage, hiring trends, and current priorities to reduce last-minute requests and make contingent talent a natural part of your broader workforce strategy.
4. Standardize engagement and experience.
Consistent onboarding helps contingent workers contribute faster and with less friction. Give them the context, access, and support they need from the start, including clear project goals, the right systems, and trusted points of contact. When managers provide that structure from day one, contingent talent can ramp up quickly and shorten time to value.
5. Monitor data and measure impact.
Build a system for tracking contingent activity that connects workforce data directly to business results. Use dashboards or workforce analytics tools to monitor HR metrics such as headcount, spend, and engagement patterns in real time. Regular reviews with leaders in HR, finance, and procurement help identify trends and reveal where contingent talent is driving the most value. Over time, these insights turn data into a guide for smarter planning and more strategic use of contingent talent.
Tools and technologies for managing a modern workforce.
Strategic workforce planning isn’t just about balancing headcount, but connecting the entire talent ecosystem. As the mix of full-time and contingent workers grows, many organizations still manage these groups in separate systems, making it hard to see the full picture. The result is inefficiency, hidden costs, and missed opportunities to align talent with business needs.
Leading organizations are closing those gaps by adopting technologies that bring all worker types into a single view. Integrated platforms provide visibility, consistency, and control across sourcing, onboarding, performance, and compliance—turning workforce data into a strategic advantage.
Key technologies driving this shift include:
Vendor management systems (VMS): A VMS provides centralized oversight of contingent talent, offering clear visibility into sourcing, spend, and outcomes.
Human capital management (HCM) platforms: When an HCM platform integrates contingent data alongside full-time employee records, leaders gain a complete view of their workforce for smarter planning and governance.
Direct sourcing platforms: These platforms help companies build their own networks of contingent workers to reduce reliance on third parties and shorten time to hire.
Compliance and classification software: These tools help organizations correctly classify contingent workers and stay compliant with evolving labor laws.
Workforce analytics dashboards: Dashboards turn raw data into contextual insight leaders can act on, showing how contingent talent is supporting current goals and where adjustments can be made to maximize value.
With connected systems in place, organizations can see their entire workforce clearly and manage it as one. Contingent workers become part of the same plan, processes, and goals that drive the rest of the business workforce planning strategy.
Looking ahead.
In the years ahead, contingent workers will represent a growing share of the global workforce and reshape how organizations approach talent and growth. Companies that plan for flexibility and integrate contingent roles into their long-term strategies will be better equipped to adapt to change, close skill gaps, and maintain momentum in a shifting business landscape.
The next frontier is total integration: connected HR systems, unified governance, and workforce visibility that spans every role, whether permanent or project-based. When organizations can see and manage their entire talent ecosystem in one view, they gain more than efficiency—they gain the power to act smarter and build a truly dynamic workforce.
Move HR forever forward.