By: Anne Rutledge – Executive Director
The contingent workforce landscape continued to evolve throughout 2024, driven by technological advancements, shifting workforce dynamics, and an increased focus on diversity and inclusion initiatives. As organisations navigate this dynamic environment, several key trends have emerged that are reshaping how businesses approach their workforce strategies in 2025.
1. The Rise of the Extended Workforce
The contingent workforce continues to expand rapidly, with organisations reporting a 15-20% increase in non-traditional workers throughout 2024. This growth has prompted businesses to revise their policies and implement robust programmes and technology to address the challenges of sourcing skilled labour whilst maintaining compliance.
2. Technological Adoptions
Organisations are embracing sophisticated solutions such as direct sourcing platforms and advanced time sheeting systems to streamline their operations. The widespread adoption of Vendor Management Systems (VMS) reflects their proven effectiveness in managing diverse workforces and achieving organisational objectives efficiently. Moreover, seamless integration across multiple platforms has become crucial for optimising operations.
3. AI-Powered Innovation
Artificial Intelligence is transforming sourcing functions, from candidate screening to onboarding processes. While AI-driven solutions enhance efficiency, reduce bias, and improve candidate matching, organisations recognise the importance of maintaining human oversight to ensure fair and ethical practices.
4. Enhanced Focus on Diversity and Inclusion
In South Africa, Diversity, Equity, and Inclusion (DEI) initiatives, including Broad-Based Black Economic Empowerment (BBBEE) supplier management, have become strategic priorities. Organisations are allocating larger budgets to these programmes and emphasising supplier diversity within their contingent workforce strategies. The insights and data provided by contingent programmes are proving invaluable in shaping future diversity initiatives through measurable outcomes.
The Strategic Role of Managed Service Providers (MSPs)
To leverage these trends effectively, organisations are increasingly partnering with Managed Service Providers. Here’s how a professionally run programme delivers value:
1. Comprehensive Contingent Workforce Management
MSPs specialise in sourcing, onboarding, and managing contingent talent through:
- Leveraging a VMS platform to streamline processes such as onboarding, compliance, and supplier performance tracking.
- Facilitate global workforce management providing companies with skills across borders whilst ensuring compliance with local laws, currencies, and languages.
2. Adopting Advanced Technologies
MSPs help integrate and manage various platforms and technology to improve workforce management:
- Direct sourcing tools: The MSP creates and manages talent pools tailored to specific company skills needs.
- Time-tracking: MSP’s implement solutions that optimise workforce productivity by tracking time worked and the cost thereof.
- System integration: MSPs ensure technologies and VMS function cohesively to deliver a seamless user experience.
3. Skills-Based Hiring Innovation
MSPs contribute to the shift toward skills-based hiring by:
- Curating candidate pools based on specific skills rather than traditional qualifications.
- Analysing market trends: Providing data on in-demand skills and guidance on adapting hiring practices accordingly.
4. DEI Programme Enhancement
MSPs strengthen diversity initiatives through:
- Development of comprehensive supplier diversity programmes inclusive of identifying and partnering/incorporating SME suppliers into the program.
- Monitoring and ensuring compliance with equity-related regulations and BBBEE requirements
Conclusion
As the contingent workforce continues to evolve, partnering with an experienced MSP becomes increasingly vital. A well-structured MSP programme offers more than just tools and technology—it provides strategic partnership, expert insights, and scalable solutions to address your contingent workforce needs. By staying ahead of workforce trends and maintaining strong compliance frameworks, organisations can remain competitive and well-positioned to meet future challenges.
Anne Rutledge is an Executive Director at Resourgenix – one of South Africa’s leading providers of Contingent Workforce Programmes.