Research Shows Use of Contract Talent Continues to Grow
New research announced by Guidant Group and the Human Capital Institute (HCI), indicates that the United States contract talent workforce is growing at more than twice the rate of traditional employment. The study, released today by Guidant Group, HCI, and industry partners, examines the use of contract talent in U.S. organizations.
More than 90 percent of organizations surveyed for the study, “The State of Contract Talent Management and the Role of HR,” reported that they use contract talent. Additionally, 34 percent said that their use of contract talent has increased or increased dramatically in the past three years. Looking towards the future, a full 85 percent of respondents believe that their use of contractors will remain about the same or grow over the next three years. Contract talent is defined as contractors, consultants, freelancers, temporary help, interim executives and others who are not part of an organization’s full-time or part-time workforce — a group that currently comprises almost one-third of the U.S. workforce.
The composition of the contract workforce is also changing in this economy; more than half are skilled consultants performing mission critical functions. The study indicates that human resources and procurement professionals will need to collaborate to manage contract talent strategically. Larry Kihlstadius, Senior Vice President of Guidant Group, noted, “The future of talent acquisition clearly rests with the integration of contract, project and full time hires. All sources of talent will become critical components to the strategic leverage of human capital. Forward thinking companies are already stratifying the workforce to obtain the “right sourced” blend for talent acquisition.”
The Contract Talent Research Practice Area at HCI, which produced the study, was formed to examine the use of contract talent and provide strategic thought leadership. Conducted in late 2008, the wide-ranging study included a survey of several hundred HR leaders, from an equal number of organizations, followed by in-depth interviews with a selection of HR executives from across the nation.