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.
A Changing Workforce
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.
Bill Rate Predictions
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%.
Impact on Business
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.
Preparing for What’s Ahead
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:
- Manages and standardizes bill rates for members
- Ensures that there are enough suppliers to meet your labor demands
- Ensures proper contingent worker classification, standardizes on-boarding and off-boarding and ensures contract continuity to minimize the members security and legal exposure.
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.