Contingent Hiring – Why the flexible workforce will be crucial during tough economic times

We won’t go over well-trodden ground, but we can’t ignore the fact that we’re living in uncertain times at the moment. With fears over the cost-of-living, energy prices and global conflict, it’s understandable that businesses will be planning for all eventualities.   

One area where there is likely to be particular concern in the coming years is the overall robustness of the job market. Skills shortages have been impacting the UK with record numbers of vacancies being reported earlier this year. According to the Office of National Statistics (ONS) there were 1.18 million positions waiting to be filled in December  2022, nearly 500,000 more than before the Covid-19 pandemic struck.   

Troubled economy  

Combined with these seemingly embedded skills shortages within the workforce, is the wider economic situation. It’s no secret that the UK is approaching a recession, and in turbulent times, it’s critical to maintain levels of service, regardless of broader challenges and hiring crises that may be impacting your operational ability.  Some industries are clearly worse off than others; British Airways and other airlines’ staffing nightmares over the summer reflect deep rooted issues that are unlikely to be solved in the short term. However, one solution that many employers have turned to, and will continue to in the future, is the gig economy and wider flexible workforce. 

There are clear benefits to utilising independent contractors and contingent professionals, particularly in challenging times. Firstly, employers are likely to be unwilling to commit to increasing their headcount when finances are tight and looking to the specialist skills of the contingent workforce can help to solve issues quickly and without the permanent commitment to investing in pensions, workplace training, and the other costs that come from onboarding permanent employees. In addition, businesses can gain from increased flexibility and efficiency and reduce the time it takes to plug potentially costly gaps, as well as benefitting from bringing in new perspectives and professionals with often versatile and extensive track records.  

Growing demand  

Indeed, the latest APSCo trend report revealed a 71% increase in the number of contractor roles added to staffing agency databases, compared to a 48% rise in permanent jobs, from August 2020 to August 2022.  This is indicative of the growing reliance on the temporary workforce in the absence of permanent resources. The statistics further revealed that contract revenue for staffing firms is a higher rate than previous months, suggesting that employers are having to invest more to attract these highly skilled flexible workers. This shouldn’t come as a surprise, it’s not easy to attract contractors at the best of times, let alone when more and more employers are looking to recruit the same professionals. Realistically, to get the skills needed to remain profitable and fully operational, firms will have to work hard to succeed.  

Factors to consider when hiring contingent workers 

While we’ve clarified that the flexible, contract and contingent workforce can be highly valuable to businesses, particularly during turbulent periods, there are factors to consider. Resourcing and managing a contingent workforce can be extremely costly and time-consuming, and the added burden of managing multiple suppliers and systems, can lead to inaccurate reporting and lack of clear processes. And with compliance of your flexible workforce – and the associated risks of getting it wrong – a significant concern, it’s not something you can afford to push down your priority list.  

Underpinned by innovative technology, Omni provides a streamlined and consistent managed service from sourcing right through to invoicing, minimising risk, maximising compliance all at a lower cost whilst saving time  

With a specialist resourcing team that will find and manage contractors directly as well as continually build your CVP through dedicated  management of agency partners and contingent workers, Omni’s Managed Serviced Provider model offers just one point of contact for all agency requests, removing the administrative burden of managing multiple suppliers and candidates away from in-house teams. 

We’ll work with you from the outset to understand your business, culture and values and your requirements for contingent labour, reviewing any existing agency relationships and engaging with the most appropriate suppliers from our existing network., We will ensure only those suppliers that best meet your specific needs are selected.

Find out more about Resource in Motion, resource management for an agile workforce, here.

Get in touch with us today to discuss your recruitment needs

RPO FAQs

RPO, or Recruitment Process Outsourcing, is a strategic approach to talent acquisition where organisations outsource some or all of their recruitment processes to an external provider. 

In traditional hiring, organisations typically manage recruitment processes in-house, from sourcing candidates to onboarding. This often requires significant time, resources, and expertise from internal HR teams or hiring managers. However, traditional hiring methods can sometimes struggle to keep pace with changing talent demands, especially in industries facing skill shortages or rapid growth.

RPO offers a holistic and strategic approach to talent acquisition. RPO providers like Omni act as an extension of an organisations brand, assuming responsibility for recruitment activities such as candidate attraction, sourcing, screening, assessment, and even onboarding. By outsourcing these functions to specialised experts, organisations can benefit from industry knowledge, resources, and technology to give access to the best talent at pace.

One of the key differences between RPO and traditional hiring lies in the level of specialisation and scalability offered by recruitment RPO providers. RPO partners often have dedicated teams of recruiters who specialise in specific industries or skill sets, allowing them to access niche talent pools and identify high-quality candidates more efficiently. Additionally, RPO solutions are highly scalable, meaning they can quickly adapt to fluctuating hiring needs, whether it’s scaling up recruitment efforts during peak periods or adjusting to changing market conditions.

Recruitment Process Outsourcing (RPO) can significantly enhance your Talent Acquisition strategy by providing specialised expertise, scalability, and strategic partnership. Here’s how:

Specialised Expertise: RPO providers have dedicated teams of recruiters who specialise in various industries, roles, and skill sets. These experts possess in-depth knowledge of the labour market, industry trends, and sourcing techniques, allowing them to identify and attract high-quality candidates efficiently. By leveraging their specialised expertise, RPO partners, like Omni, can access niche talent pools and ensure high-quality people for your organisation.

Scalability: One of the key advantages of recruitment RPO is its scalability. RPO providers can quickly scale recruitment efforts up or down based on your organisation’s hiring needs. Whether you’re experiencing rapid growth, seasonal fluctuations, or project-based hiring spikes, RPO can adapt to accommodate your changing requirements. This flexibility ensures that you have the right resources in place to meet demand without overburdening your internal HR team or sacrificing recruitment quality.

Cost-Effectiveness: RPO recruitment can offer cost savings when compared to traditional hiring methods. While there may be an initial investment in outsourcing recruitment to an RPO partner, the long-term benefits often outweigh the costs. RPO can help reduce time-to-fill, cost-per-hire, and turnover rates, resulting in overall cost savings for your organisation. 

Strategic Partnership: RPO goes beyond transactional recruiting by forging a strategic partnership between the RPO partner, like Omni, and your organisation. At Omni, we become an extension of your employer brand and we work closely to understand business objectives, culture, and talent requirements. This collaborative approach allows RPOs to tailor recruitment strategies that align with your organisation’s goals. By working as an extension of your HR team, RPO providers can provide valuable insights, leading practices, and innovative solutions to help achieve talent acquisition objectives.

Recruitment Process Outsourcing (RPO) is a strategic approach to talent acquisition where organisations outsource some or all of their recruitment processes to an external provider, like Omni. The partner is known as the RPO provider and assumes responsibility for various aspects of the recruitment process, including candidate attraction, candidate sourcing, screening, assessments, interview coordination and onboarding.

Recruitment RPO is about leveraging specialised expertise, technology, and resources to streamline the recruitment process and improve hiring outcomes. Rather than relying solely on internal HR teams or traditional recruitment agencies, organisations partner with RPO providers to access a broader range of talent to enhance efficiency and drive better results.

The specific services offered by RPO providers can vary depending on the needs and preferences of the organisation. That’s the beauty of RPO. Some organisations may opt for end-to-end RPO, where the RPO provider manages the entire recruitment process from start to finish. Others may choose to outsource specific elements of the recruitment process, such as candidate sourcing or interview scheduling, while retaining other aspects.

There are several key advantages:

Access to Specialised Expertise: RPO providers have dedicated teams of recruiters who specialise in various industries, roles, and skill sets. This expertise allows them to identify and attract high-calibre talent more efficiently than internal HR teams or traditional recruitment agencies.

Scalability: RPO recruitment solutions are highly scalable, meaning they can quickly adapt to fluctuating hiring needs. Whether your organisation is experiencing rapid growth, seasonal fluctuations, or project-based hiring spikes, RPO can flexibly adjust to accommodate your changing requirements.

Cost Savings: RPO can offer cost savings compared to traditional hiring methods. By outsourcing recruitment processes to an external provider, organisations can reduce time-to-fill, cost-per-hire, and turnover rates, resulting in overall cost savings for the business.

Strategic Partnership: RPO recruitment goes beyond transactional recruiting by fostering a strategic partnership between the RPO provider and the organisation. At Omni, we work closely with our organisations to understand their organisation’s objectives, culture, and talent requirements, allowing us to tailor recruitment strategies that align with the organisation’s goals and values.

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