Wary Corporations and Younger Workers Are Shaping a New Contract Workforce

Human Capital Institute Reports That Outsourcing, offshoring, and now a preference for contract workers will all impact the return of full-time employment

Washington D.C. - May 19, 2004 - The Human Capital Institute, a think-tank and educator for human capital management and executive issues, announced today the publication of a new briefing for its members, entitled Contingency Workforce Management Strategies. The briefing aims to help corporations understand the structure, opportunities and challenges presented by a workforce increasingly defined by contract and temporary contributors.

As millions of American workers struggle to find full-time employment, corporations are increasing their reliance on outsourcing, offshoring and contingency employment. As the report states: For many leaders in organizations that experienced the record expansion of the late 1990ís followed by the long recession of 2001-2003, there is a deep-seated reluctance to hire full-time, salaried workers in any volume. Though full-time employment will certainly increase as the global economy improves, there is no doubt that contingency hiring has become a permanent, important and growing option for many companies.

HCI presents the following key findings:

* The contingent workforce will grow at three to four times the rate of the traditional workforce over the next decade, mainly due to employer demand but also owing to the preferences of young, skilled workers.

* Organizations that fail to expertly manage and leverage this resource will fall behind their competitors.

* To large organizations, effective contingent workforce management can shave millions, even tens of millions of dollars straight off the bottom line - year in and year out.

* The contingent workforce can only be managed effectively through a combination of best practices and technology. Or, it can be outsourced.

* Due to its growing importance and compliance issues, HCI predicts a trend toward greater inclusion of contingent workforce management on corporate board agendas, especially where corporate governance is at issue.

The full report is available free to HCI members and the press at