Imagine that you took on a new client but the project has very strict deadlines. You need one more content writer to support your existing content team in completing the order before the deadline. While you can go through a complete hiring cycle to onboard a new writer, it’s going to take a lot of time, effort, and money and the writer might not be needed after this particular projects.
This is where an on-demand workforce model comes in handy. You can contact freelancers, individual contractors, agencies and other avenues where people are available to work on an on-demand basis. They can be on the company’s payroll as long as their services are needed. No need for any placement drives, multiple rounds of interviews, or exhaustive onboarding processes. The on-demand workforce model was continuously rising in the past decade but the recent pandemic accelerated its growth from being a cottage industry to a major market force.
Need for an On-demand Workforce
The rise in remote work has made freelancing a viable option for several people. This can be the Gen Z workforces who are just starting out, senior experienced people who have a lot of expertise but don’t want to commit to a full-time job, or talented professionals from developing countries who aren’t able to find sufficient opportunities domestically. In a report by Upwork, it was found that freelancers will become the majority workforce in the US by 2027.
This makes it a necessity for companies to adopt a flexible working model in which freelancers can support or even take full responsibility for certain tasks whenever needed. In a survey done by Flexjobs, 51% of employees said that their productivity working from home was on par or higher than when they were working from the office and would prefer to work from home even after the pandemic subsides. Companies not providing remote work as an option stand to lose 58% of their workforce.
Bigger enterprises have realized this statistic with companies such as Spotify, Microsoft, Twitter, Meta, and more announcing permanent work from home for their employees. They understand the importance of employees feeling comfortable wherever they are working and that it is not necessary to hire a dedicated person for every task. In fact, as of March 2019, Google’s workforce consisted of more freelancers than permanent employees.
One more factor aiding the need for adopting an on-demand workforce is the growing skills gap among employees. Digital transformation is happening constantly with newer technologies and innovations coming to the market now and then. McKinsey, in a report, stated that 9 out of 10 executives agree that there is a skill gap in their workforce. While upskilling the entire workforce can be a mammoth task, hiring freelancers with the required proficiency temporarily can be a lot cheaper and quicker.
Advantages of an On-demand Workforce
There are several reasons why an on-demand workforce can be beneficial for your organization.
Hire Global Talents
Just working with local employees can restrict a company from hiring the best people for a job. Freelancers or on-demand talent sourcing platforms can enable companies to tap into the global talent pool to find suitable candidates no matter where they are.
Embrace Digital Transformation
A flexible workforce model helps companies to stay updated with changing technologies, customer demands, and the ongoing digital transformation by hiring skilled workers temporarily as and when the need arises.
Fill Roles Faster
In-person interviews, assessing different candidates, and completing the onboarding process can take up a lot of time before an employee starts contributing to the company. Freelancers or employees from on-demand work platforms have already proved their mettle and can be hired a lot quicker to fill empty roles.
Decrease Overhead Cost
Working with on-demand workers also helps companies in decreasing the overhead costs spent on traditional hiring processes. This way, companies can focus on the talent rather than the process while scaling their workforce.
It is a common occurrence for companies to have workers not showing up for work. An on-demand workforce with ready-to-work employees can help in fulfilling the unfilled roles or shifts on short notice without too much hassle.
The Verdict on On-demand Working
The on-demand workforce model has grown exponentially in the past couple of years. There are 162 million people in the US and EU alone that work in this on-demand economy. This contains professionals from every industry be it coders, graphic designers, engineers, developers, warehouse workers and more.
Small and midsize companies have especially benefited from this kind of working model. Freelancers provide a cost-effective and flexible solution to the companies and more than 70% of US SMBs have hired freelancers at least once. On-demand workers can be a great asset for a company and they must bring a cultural shift in the organization and leverage the benefits of on-demand workers efficiently.
Agilisium is an advanced AWS data and analytics consulting partner that can help you in consulting, designing, developing, and implementing AWS cloud data projects so that you can achieve digital transformation efficiently and embrace a digital-first business model.
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