How IT Contract Jobs Can Be the Solution to the Existing Talent Crisis?

In 2023, 262,000 people were laid off globally, and this trend continued in 2024; with 50,000 people already laid off, the world is moving towards a new normal—mass Layoffs.

What’s the reason?

This trend will continue for a few more months. The demand for niche skills will skyrocket, and supply will be a massive challenge due to the scarcity of skilled talent.

More people will work under tensions of job security as nobody wants to be a ‘number’ in the subsequent mass layoffs.

As a result, many people are entering the gig economy for extra pay and more flexibility.

On the other hand, boomers are slowly aging, and GenZ and Millenials are taking over the workforce with different mindsets and priorities regarding how and what work they should do.

This is where contingent talent comes in—it allows businesses to “borrow” the exact skills they need when they need them, providing flexibility and agility.

However, according to a Harvard Business School/BCG study, most businesses use digital talent platforms inefficiently, resulting in their struggle to find the perfect match. 

This discussion gives rise to a few questions – 

Why Do People Prefer Contract Jobs?

Most of the GenZ and millennial workforce today are looking to work at home and have found contract IT jobs to be more helpful than regular jobs. 

Most people are reluctant to tie their fortunes to one company, and they appreciate the flexibility that contract work affords. “Employees are saying, ‘Why do I want to be beholden to one employer where the risk is all on my side?’” says Sophie Wade, founder of Flexcel Network, a future-of-work consultancy.

Also, job security in permanent jobs has become a myth these days. Neither the employee nor the employer is loyal. It is all based on need.

You will stay trapped in job security, unable to keep up with the market and become outdated.

Whereas contract jobs keep giving you reality checks, you can upskill yourself accordingly.

There are more than 140,000 engineers (60 million independent workers in total) working in contract roles in the US because of the following reasons:

The best part is the expedited process of securing a contract role is much more streamlined than traditional full-time interview roles.

Why is a Contingent Workforce the Solution For Skill-based Hiring?

Now, that’s the real problem with the traditional hiring process – you post a job, wait for people to apply, spend weeks screening resumes, and then interview many candidates for hours who match your description partially (mostly) or perfectly (rarely). Then those candidates either back out or put you on hold for weeks. 

Recruiters or hiring managers go through this process every month. 

Contract hiring through digital talent platforms like Supersourcing makes it easy for recruiters to fill hard-to-find skills, offers top-tier talent with a broader range of skills, reduces time, and allows more flexibility and agility to the business.

To understand this, we first clearly define the difference between traditional and contract hiring processes.

The shift to contract hiring (or contingent work) is not a recent trend, Aptitude reported, “but the pandemic has accelerated the urgency and forced companies to think more strategically about the composition of their workforce,” according to a recent study.

For companies, it’s about tapping into niche skills, cost-efficiency, agility, and competitiveness. For contractors, it’s an opportunity to diversify experiences, learn from different environments, and often bring fresh perspectives to teams.

Yet, the journey isn’t without its complexities. Shifting mindsets, adapting processes, and navigating regulations all play a pivotal role in successfully harnessing the power of contract hiring.

A Test Drive for Employers

Employers aren’t just hiring contingent workers to respond to tightening budgets. Most employers don’t want to be stuck with the wrong hire or someone who doesn’t fit the bill. 

That’s where contractual jobs come into the picture; it’s a win-win for both parties.

These short-term roles allow employers to test candidates’ suitability for the role and organization without the hassle of paperwork and the company’s obligation to pay health and other benefits. 

It works for contractors (or contingent workers), too, as they can also understand the company and its culture and decide whether they want to join them as permanent employees.

Contingent workers also act as a need-specific solution for companies with less financial investment.

It becomes the best choice when focusing on short-term or project-specific requirements, ensuring companies maintain cost-effectiveness without compromising talent quality.

Another interesting benefit businesses find helpful is the fresh perspectives these contractors bring because of their diverse experience. 

As a result, businesses are increasingly looking for more independent contractors to fill open jobs at their organizations. Job postings for contract jobs have increased by 26%, according to LinkedIn’s Future of Recruiting 2023 report. 

They are looking at India to fill most of those roles because of its cost-effectiveness and best quality.

It also stated that nearly one-quarter of corporate recruiters predict their company will invest more in staffing agencies and executive recruiters.

At Supersourcing, we’re not just witnessing this transformation but actively driving it. Our platform connects organizations with top-tier talent on demand, facilitating a seamless transition into the contract hiring paradigm. We support your talent acquisition needs and ensure your business remains agile, innovative, and future-ready.

So, as you plan to accommodate contract workers in your workforce, remember that you’re not just hiring for today; you’re preparing for the future of your organization’s workforce. It’s a future filled with possibilities, and we’re here to help you make the most of it.

It is not the trend or a label for your company or your career—it’s about the value you bring to the table.