The Growing Demand for Contract and Temporary Talent: What Employers and Job Seekers Need to Know

As the landscape of work continues to evolve, contract or contingent employment is becoming an increasingly significant part of the labor market.  A combination of work preferences, technological advancements, and economic fluctuations have reshaped the job market in profound ways, with the expectation that this trend will only accelerate in the years ahead. For both employers and job seekers, understanding these shifts and the current trends is crucial to remaining competitive and prepared for the future of work.

The Growing Demand for Contract: Data and Trends

• Uptick in Contract Work: According to a study by Upwork, the freelance workforce is projected to reach 57.3 million workers by 2027, a significant increase from previous years. This underscores a broader shift towards more flexible work arrangements. (Source: Upwork)

• Expert Predictions on the Extinction of the 9 – 5 Workday: LinkedIn founder, Reid Hoffman, has predicted that traditional 9 – 5 jobs will become obsolete by 2034.(Source: Forbes)

• Georgia’s Gaining Popularity for Contract Roles: Georgia is emerging as a key player in this shift, ranking as the 5^th most popular state for contract jobs. (Source: Zippia)

• Atlanta is a Gig Economy Hub: As the gig economy continues to thrive, Atlanta has become a major hub for contract work, especially in the finance and technology sectors. (Source: Atlanta Business Chronicle)

• Shift in Worker Preferences: A survey by FlexJobs found that 57% of workers prefer flexible work arrangements over traditional full-time jobs. (Source: FlexJobs)

• Demand for Specialized Skills: A study by Deloitte found that 80% of executives believe that their organizations will need to increase reliance on contract workers to access specialists. (Source: Deloitte Global Human Capital Trends Report)

• Millennials Leading the Contract Workforce: A McKinsey study found that of the working-age population (mostly millennials), that 20% – 30% engage already in some form of independent work. (Source: McKinsey Global Institute)

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What does this mean for employers and job seekers?

For Employers

As contract work becomes more mainstream, employers must rethink traditional workforce strategies in order to stay competitive. This shift demands flexibility and a strategic approach to employee engagement and staffing. For finance and accounting teams, where specialized skills are often in short supply and there is a general shortage of talent, embracing contract work can be an effective solution.

Employers can expect:  

• Increased flexibility and scalability: Contract workers can be hired as needed, allowing businesses to quickly adjust to changing market conditions or project demands. During busy periods, bringing in a contractor can help manage workload spikes without long-term commitments.

• Access to specialized skill sets: Contract workers often bring specialized skills or experience that may be difficult to find in full-time employees. Of course, you can train a full-time employee on a particular technical skill, but usually a contractor can 'hit the ground running' without the need for extensive up front training.

• Reduced overhead: Employers can reduce expenses related to benefits, payroll taxes, and retirement contributions by leveraging contract workers. This cost-saving aspect can be particularly beneficial for small businesses or startups that need expertise without the financial burden of a full-time hire.

• Improved productivity: Many contractors enjoy a better work-life balance. This often results in higher job satisfaction, which in turn can lead to improved productivity. Contractors are motivated to deliver high-quality results, especially as they often depend on strong references for future opportunities.

For Job Seekers

For professionals in accounting and finance, the rise of contract work presents numerous advantages. However, navigating this new job market requires a proactive approach to career management. Job seekers should focus on continuous learning and skill development to stay competitive. 

Job seekers can expect:  

• More opportunities: As more companies shift to project-based staffing, the number of opportunities for contract work continues to grow. Whether you're a CPA, financial analyst, or auditor, there are likely more opportunities to choose from than ever before.

• Skill development: Contract work allows professionals to gain experience across multiple industries and projects. This diversity not only enhances a professional's resume but also keeps them agile in an ever-changing job market.

• Work-life balance: Many contract roles offer flexible work hours and remote options, which can lead to a healthier work-life balance. For those prioritizing family or personal time, contract work offers the opportunity to better manage both.

• Career advancement: Contracting provides a way for professionals to advance their careers by building a network, gaining exposure to various industries, and acquiring in-demand skills. Independent work can also serve as a stepping stone to starting one's own consulting business or moving into a permanent, higher-level role.

Looking Ahead

No matter which side of the hiring table you sit on, staying informed about workforce trends is the key to navigating the ever-evolving job market. To truly thrive, individuals and organizations must proactively adapt and embrace these changes. The pace of transformation is accelerating, and embracing a mindset of continuous learning and innovation is crucial for your success.  

Our organization is a frontline witness to the changing labor market. As a specialized recruiting firm focused on accounting and finance roles, we are uniquely positioned to observe the evolving trends shaping the labor market. Our team of expert recruiters is here to provide guidance to both clients and candidates, helping them to understand the benefits and challenges of contract work. By offering tailored solutions to these changing dynamics, we’re helping to shape the future of work in the accounting and finance space.