Feb 25, 2015
As temporary labor evolves into a major part of the overall workforce, it’s critical for organizations to understand current and future market trends. IQNavigator’s IQNdex is an industry resource that summarizes contingent worker bill rates by job sector and U.S. geographic region to shed light on the temporary labor landscape. This insight is invaluable to our membership, and will help to better predict cost and risk implications.
Overall, the size and reliance on the contingent workforce continues to increase. In Q1 of 2014 the use of temporary workers was at an all time high, and since 2010 temporary jobs in the U.S. have risen by 25%. Although this trend occurs frequently in a post-recession market, businesses will continue to use contingent labor as a significant strategy for managing overall spend.
Due to an abundance of available labor in 2014, average bill rates remained muted. However, rates are predicted to rise in 2015 as labor supply tightens, minimum wage increases and Affordable Care Act (ACA) legislation is implemented.
It is important to note that the northeast and south regions of the light industrial job sector saw a 4.7% bill rate increase in 2014 due to heightened demand. But, the hourly rates of light industrial workers are the lowest among all sectors analyzed, taking less than a $0.25 rise to increase rates by 1%.
With an increased use of temporary labor, there are also added financial and information risks. Organizations will need to be able to quickly adjust to changing business conditions as bill rates and labor needs rise. Also, a growing number of contingent workers will have access to sensitive business assets and systems. So, proper employee screenings will be even more crucial.
How can you ensure that your contingent workforce is being managed properly?
By implementing a vendor management system (VMS) with your managed service provider (MSP). This type of program offers many unique benefits including the following safeguards to protect your business:
Corporate United’s partnership with IQNavigator provides a top-tier VMS solution to help companies prepare for the future and improve their current processes. Learn more about how a VMS can help you by contacting Corporate United.
Tim Holland: Senior Director - Human Resources Solutions at Corporate United
As a member of the Corporate United's Category Management Team, Tim works with our members, and prospective members, in sharing the value of our contingent workforce programs , helping them to evaluate their needs and challenges, and consults with them to choose the right solutions for their unique needs. Tim offers the CU membership expert guidance resultant of his background as a long time, former executive in the staffing industry. Tim is responsible for our numerous programs in contingent workforce including staffing, 1099 and Payroll Management, Managed Services Providers, and our Vendor Management supplier.