Companies across the Asia Pacific are relying on a contingent workforce to ensure that their business runs smoothly, a recent report by Persolkelly found. Among them, Indonesia is the highest adopter of a contingent workforce and the figure is expected to grow by 15% in the next two years.

A contingent workforce includes short-term and fixed-term contractual employees, freelancers and independent contractors outsourced to agencies.

Amidst the Great Resignation, the report highlights how companies are turning increasingly to a contingent workforce strategy to overcome headcount shortages. Businesses impacted by COVID-19, technology’s rapid growth, and economic uncertainty are rethinking traditional recruitment approaches to stay competitive. Contingent workforce becomes an essential part of workforce strategies in the Asia Pacific, with companies planning to increase their usage over the next two years.

The most common reason for adopting a contingent workforce is that it offers flexibility to workforce planning. The second top reason is to help fill specialized roles to ensure no disruption to operations.

Persolkelly survey suggests there is a changing mindset, with the majority of companies likely to offer contingent workers the same or better rewards as permanent staff.

See also: Highly-Skilled Contingent Hires to Drive Growth of IT Industry in Singapore

Key findings in Indonesia:

• 45% of Indonesian companies use a Training and Upskilling approach to widen their workforce’s knowledge and scope
• 47% offer the same rewards scheme as permanent employees, while 21% offer a better rewards scheme than permanent employees
• 41% of respondents engage recruitment agencies for their headcount needs and strategies.

“While economic uncertainty remains, the post-pandemic rebound presents businesses with a wave of opportunities. Given the talent shortage and fluctuations in supply and demand, growth-hungry companies must embrace fresh hiring approaches to stay competitive. A well-implemented Contingent Workforce strategy brings multiple benefits in this volatile landscape,” said Elvin Tan, Regional Director – Head of Operations APAC, PERSOLKELLY.

PERSOLKELLY and YouGov surveyed 1,112 employers and HR decision-makers in Australia, Mainland China, India, Indonesia, Hong Kong, Malaysia, New Zealand, Singapore, South Korea, Taiwan, Thailand and Vietnam.

Read also: How Can Teams Evolve to Accommodate Contingent Workers?