With the right strategy, the contingent workforce is a powerful talent asset helping companies stay agile, innovative, and future-ready.
Sara Braun
Editorial Strategist, HR
Workday
We’ve officially entered the era of the fluid workforce. What used to be a "nice-to-have" organizational trait has evolved into a core strategic priority. Driven by shifting market demands and unpredictable economic headwinds, companies are rewriting their talent strategies. The result? A vibrant, diversified ecosystem of full-time employees, independent contractors, and flexible talent working side-by-side to drive innovation.
Contingent workers in particular are becoming more prevalent—65% of companies plan to expand their use of contingent labor over the next two years. Typically supplied by third parties such as temp agencies or employers of record, they operate directly inside an organization’s systems and teams to expand capacity or skills coverage.
With the external workforce booming, the question for leaders is no longer if they should use contingent talent, but how to maximize their impact. Operating these hiring plans in a silo is a massive missed opportunity. To unlock true agility, elite skills, increased financial freedom and control, companies need to incorporate flexible talent and contingent work directly into the DNA of their broader workforce strategy.
Sixty-five percent of companies plan to expand their use of contingent labor in the next two years.
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When intentionally woven into strategic workforce planning, flexible talent becomes a force multiplier for the entire business. This unified approach to managing permanent employees and temporary workers gives organizations the elite agility required to scale instantly and secure niche expertise on demand, filling critical skill gaps without the burden of long-term commitments.
In periods of rapid change, this flexibility can be the difference between missing out on opportunities and moving first. The benefits of a strong contingent workforce show up clearly in four areas:
“Contingent talent has become a critical source of capacity, skills, and expertise for organizations,” says Dave Wachtel, General Manager for HCM Products at Workday. “When it’s managed with that value in mind—and as a core part of workforce strategy—companies can allocate talent more quickly and intelligently while making better use of the capabilities available to them.”
Unlocking that level of return, however, requires structured ongoing management and clear steps to optimize how contingent workers are engaged and supported. While relying on contingent workers during short term bursts of increased demand can prove effective, your strategic view has to be far more long term.
When contingent talent is managed with value in mind—and as a core part of workforce strategy—companies can allocate talent more quickly and intelligently
Dave Wachtel
General Manager for HCM Products at Workday
Many organizations already depend heavily on contingent workers but only capture a fraction of the potential value. Fragmented processes and poor visibility make it challenging to see who is working where, at what cost, and to what effect.
The result? Management sees the money going out the door, but doesn’t see the real payoff. To fix that, you need a plan. Here are a few simple steps to help you when managing a contingent workforce:
Start by developing a clear view of how you already use contingent talent. A focused audit lays the foundation for informed decisions as you build contingent labor more intentionally into your strategy. Ask the following:
This audit gives you a concrete starting point for every step that follows, making it easier to see which roles should remain contingent by design, which may be better as permanent or blended, and where unmanaged risk or duplication is creeping in.
With a clear understanding of your current contingent workforce, quantify the investment behind it. Use 12-18 months of contingent labor data and organize it by factors like business unit, geography, role type, supplier, rate, and tenure. Look for specific patterns in that data, including:
From there, highlight priority areas where better design, sourcing, or governance could materially improve outcomes—for example, standardizing contingent rates across high‑spend role categories or consolidating work with fewer, higher‑performing suppliers.
The request process for contingent roles has a direct impact on cost, risk, and consistency. When every team uses its own process—emailing suppliers directly, phoning contacts, or passing around old templates—it becomes difficult to see total demand or apply common standards.
Put a single, structured request process in place that captures:
By capturing this information in one place, contingent demand becomes visible and trackable. You can route requests to preferred suppliers and give HR and finance a chance to review or refine role design as needed.
Without shared rules, contingent engagements may vary in quality and cost. Set clear guidelines for how you manage contingent workers to create a predictable and compliant model. When creating your engagement rules, be explicit about:
Many organizations outsource contingent workforce management to keep these standards tight. External specialists strengthen compliance, benchmark and negotiate rates, and monitor supplier performance—while also typically providing contingent workforce solutions that apply these rules consistently across the enterprise.
Finally, fold contingent workforce decisions into your broader talent strategy. Bring HR, talent acquisition, procurement, and finance together on a regular basis to review your total demand for skills—permanent and contingent—in one view.
For your most important capabilities, agree on the mix of contingent and internal talent you’re aiming for. If you work with an RPO or similar partner, connect their view of hiring demand to your contingent workforce solutions so you’re all working from the same skills picture.
Done well, this leads to a more coherent experience for people who move between contingent and permanent roles and a far stronger base for long‑term strategic workforce planning.
With clear structure and strategy behind it, businesses can maximize contingent workforce benefits and make more confident decisions.
Let’s face it: the workforce is only going to get more diverse. The businesses that win tomorrow will be the ones treating flexible talent as a core pillar of their growth, not a footnote.
When market demands twist and turn, these agile pros bring the exact skills you need, exactly when you need them. Backed by a solid hiring strategy and long-term vision, a combined team of permanent staff and flexible contractors gives you the ultimate readiness for any challenges that may come your way.
Feeling the strain of rapid market changes on your talent strategy? Develop a plan to define goals, evaluate possible vendors, and unlock workforce potential with the right skills technology in this Workday Buyer's Guide.
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