the pros & cons of hiring flexible talent.

Flexibility is key in the modern workplace. While businesses benefit from integrating contingent talent, gaining cost efficiencies and quick access to specialized skills, workers increasingly appreciate the advantages of freelancing, contracting, and gig work. As a result, more and more companies, including small and medium-sized enterprises, are making flexible staffing a central part of their HR strategy. If you’re looking to step up your use of contingent workers and thinking about how this approach will fit with your business, it’s worth considering some of the pros and cons of hiring flexible talent.

pro: access to specialist skills

One of the biggest recruitment challenges many modern businesses face is identifying and acquiring the skills they need in the mainstream labor market. According to ManpowerGroup’s 2024 Global Talent Shortage survey, three-quarters (75%) of employers worldwide express difficulties in finding talent with the right skill set. 

A recent Eurobarometer survey highlights skill shortages as a primary concern for Small and Medium-sized Enterprises (SME) across the EU. According to survey findings, a significant portion (42%) of European SMEs struggle with shortages of technically skilled employees, including lab workers, mechanics, and others. The industry sector and manufacturing face heightened challenges, with 47% and 50% of SMEs in these sectors reporting issues in recruiting technical talent.

Embracing the ever-growing pool of freelance and contingent talent available in the flexible labor market could offer a potential solution, providing access to skills and expertise that are difficult to source through conventional recruitment methods.

con: potential lack of engagement

Flex workers are undeniably a valuable source of skills, but they’re not a permanent member of your organization. It’s therefore understandable if you have some concerns about their overall engagement with the business and what it’s trying to achieve.

Do your contingent staff understand your long-term vision as an organization, and are they committed to helping you achieve it? These are valid questions to ask.

If key stakeholders within your businesses harbor these concerns, there are steps you can take to minimize the risks of flexible staffing.

For example, it’s important to make sure you’re avoiding common mistakes when onboarding your contingent workers. If you get this stage of the process right, you’re more likely to see positive results in the long run.

Another effective measure to engage your contingent workforce is to work on building lasting relationships with flex workers, potentially with a focus on bringing them onboard permanently, if that’s something both parties would be interested in.

pro: cost efficiency

Achieving maximum efficiency in human capital cost will always be a key goal for most HR departments, and engaging with the contingent talent market when you have immediate skills needs is a good way to achieve it.

It’s well-known that hiring a permanent employee is a considerable financial commitment, with costs like advertising the role, onboarding, training, salary and benefits to take into account. Companies also lose money and productivity while positions are left unfilled.

Bringing in flexible workers can help you make optimum use of your HR budget by ensuring you’re only paying for the skills and services you need, when you need them.

This can prove particularly important if you have short-term requirements - if you need specialist skills to complete a one-off project or additional staff to meet a seasonal spike in demand, for example.

con: less control

Temporary hiring is a good way to acquire the skills you need quickly and keep your labor costs under control, but some HR managers might have concerns that using flexible staff will mean they have less control over their workforce.

Traditional recruitment and induction of permanent staff gives you the time to engage and build relationships with employees. You can work with new recruits to ensure they’re familiar with how the company works and what will be expected of them in their role.

While the onboarding process for contingent talent will certainly be different, it doesn’t necessarily mean you have to sacrifice control. It’s important to make sure any temps and contractors you hire will fit in well with your company culture and working methods. One way to do this is by looking at candidates’ work history to see how they’ve performed for organizations similar to your own in the past.  Reference checking tools can make this job easier.

You can also minimize risk by working with an experienced staffing partner offering in-depth knowledge of your sector and the local labor market.

pro: moving with the times

The way people and businesses work are changing all over the world. If you want to keep up with fast-moving trends in talent acquisition and workforce expectations, you must be flexible in how you attract and hire employees.

Research has shown that 76% of human capital leaders are making contingent staff a key part of their overall workforce strategy, underscoring the continued expansion of the gig economy. Failure to evolve with this trend puts companies at risk of falling behind.