Diversity programs continue to evolve, and enterprises must ensure their efforts span the total talent spectrum. Often, diversity initiatives are primarily focused on full-time, permanent employees. However, with contingent talent now comprising more than half of organizations’ entire workforce, diversity should permeate contingent workforce management (CWM) strategies.
In fact, recent Ardent Partners and Future of Work Exchange research indicates 62% of enterprises plan to infuse diversity initiatives into their CWM efforts as part of their workplace goals.
Diversity Is Critical to CWM Results
CWM and the Future of Work movement are aligned in their workforce direction. Extended workers represent a global talent pool where flexibility and a skills-based portfolio are at their core. Equally important, however, are the unique perspectives and outside viewpoints of contingent workers that cater to diverse thinking and enterprise representation.
Studies show that a diverse (permanent and contingent) workforce contributes to increased productivity and higher innovative output. InStride, a provider of workforce education programs, provides several insightful statistics on diversity’s impact on employees and their enterprises.
- Corporations identified as more diverse and inclusive are 35% more likely to outperform their competitors.
- Diverse companies are 70% more likely to capture new markets.
- Diverse teams are 87% better at making decisions.
- Diverse management teams lead to 19% higher revenue.
When it comes to diversity and the contingent workforce specifically, the numbers are just as impressive and impactful. In a Forbes article, Ashish Kaushal, founder of Consciously Unbiased, shared statistics from his report, “The Future of Diversity, Equity & Inclusion (DEI) in the Contingent Workforce 2022.”
In the report, executives who identified their contingent DE&I programs as leading-edge reported notable business advantages, “such as 29% reporting that their organization’s ability to attract talent is a source of competitive advantage, 16% receiving a high return on investment (ROI) for their contingent labor, and 27% considering their contingent workforce a high-performing addition to their total workforce.”
Is Your Focus on CWM Diversity Enough?
These outcomes are not coincidences but rather solid indications of the importance of diversity programs to extended workers. Despite the U.S. pushback on diversity and inclusion initiatives from local and state governments, many enterprises understand these facts and are expanding their global contingent talent pools as a result.
Vaishali Shah, vice president of diversity & inclusion for Randstad Sourceright, advises organizations in her article for DiversityInc, to ask themselves the following questions about their contingent workforce:
- Do contingent workers continue to return to your company? It may be a telling sign if previous extended workers are declining contract opportunities.
- Do they get involved in the company’s social and community initiatives? Extended workers should be encouraged to participate and integrate into diversity-related activities. If they’re not involved, probe for answers.
- Are they able to build on their skills and capabilities while contributing to the bottom line and overall growth? The skills of contingent workers are what make them attractive as job candidates, but enterprises should also be investing in their skills for future organizational growth.
- Do they refer colleagues to your organization and jobs within their network? Soon, direct sourcing will be the primary strategy for attracting and retaining contingent and permanent workforce talent. Extended workers are essentially brand ambassadors who can spread the word about diversity priorities and commitments.
In today’s Future of Work paradigm, contingent workforce management strategies must have a diversity component to be successful. There are no more studies required to point out this fact. Diversity equals progress and competitiveness.
