Contingent labor continues to evolve, with stabilization in some areas and uncertainty in others. Broadleaf’s Vice President of Client Delivery Joseph O’Shea recently joined a virtual panel to discuss emerging trends, challenges, and opportunities across the industry. In case you couldn’t catch the webinar live, we’re sharing some of the key insights and takeaways. You can also view a recording of the full webinar here. 

Steady Demand in Key Sectors 

Panelists noted that demand for contingent labor in the tech industry—particularly in areas like software development, cybersecurity, and AI—has been on the upswing. Tech’s shift away from cloud computing in favor of AI is changing the type of talent that businesses want, underscoring the need for more robust reskilling and upskilling programs. Demand in healthcare and logistics has remained steady, as well. 

Related: What is Contingent Workforce Management? 

Importance of Proper Worker Classification 

Worker classification continues to present challenges in the contingent labor space, especially given new regulations from the U.S. Department of Labor around classifying independent contractors. 

Proper worker classification is essential from a legal standpoint but can also help organizations manage their workers more effectively. Audits play a critical role in identifying classification issues, but the real challenge is addressing the root causes of misclassification. Organizations must educate managers and guide them in properly classifying workers to avoid costly problems down the road. 

Related: Employment Law Updates to Know in 2024 

Customization and the End of One-Size-Fits-All Solutions 

When it comes to contingent workforce management, offering a one-size-fits-all approach is no longer enough. Providers must tailor their programs and processes to each individual client. This means thinking more carefully about the team assigned to each account and ensuring their expertise and experience align with the client’s needs and preferences. 

Direct Sourcing: Valuable but Misunderstood 

Although direct sourcing has been a hot topic for several years, misconceptions remain around what it entails and how it can be implemented successfully. 

Panelists agreed that the biggest benefit of direct sourcing lies in the “reusability” of known talent, such as alumni or “silver medalists,” who have already proven their value to an organization. Tapping into this talent pool when needs arise can mitigate risk, expedite onboarding and ramp-ups to productivity, and save the company valuable time and money. 

Ultimately, though, direct sourcing should be one channel in a broader talent acquisition strategy—and there’s still more education needed for employers to make the most of it. 

Related: What is Direct Sourcing? 

Putting DEI into Practice 

Discussions around pay transparency and diversity, equity, and inclusion continue to shape how organizations manage their contingent workers. Employers—and their contingent workforce partners—must put these principles into action, track their efforts, and ensure fair, equitable treatment of all candidates and employees. By embracing diverse experiences and backgrounds, businesses can do a better job of innovating and problem-solving. 

Related: Neurodiversity in the Workplace: Leveraging the Untapped Talent Pool 

The future of contingent labor is filled with both challenges and opportunities. As organizations navigate this shifting landscape, those that focus on proper worker classification, embrace a comprehensive approach to talent acquisition, adapt to regulatory changes, and prioritize flexibility and diversity among their contingent employees will be best positioned for success. By staying ahead of these trends and proactively addressing the challenges, companies can build a more resilient and dynamic contingent workforce for the years to come. 

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