Contract Careers and the Multigenerational Workforce
This three-part series explores topics and ideas presented in Robert Half’s Examining the Multigenerational Workforce report and is based on insights from Robert Half’s internal experts and thought leaders of different generations. Part Two takes a look at the appeal of contract work through a generational lens. Part Three is coming soon. If you haven’t already, check out Part One.
As companies face skills shortages along with labor markets that are still relatively tight, many are turning to contract talent for help. In fact, 40% of hiring managers say they’re engaging contract professionals more now than they were a year ago to help keep business initiatives on track and move key projects forward, according to a Robert Half survey.
That may suit younger members of the workforce just fine.
Robert Half’s Examining the Multigenerational Workforce report shows that 50% of professionals from Gen Z would quit their primary job in favor of contracting full time. For Millennials, that percentage is lower but still fairly high at 40%. With the share of professionals from Gen Z and Gen Y now accounting for over half of all U.S. employees, what they say about how they want to work matters.
What is it about contract work that appeals so much to professionals from younger generations? And could those advantages be something companies could use to keep their permanent employees engaged and on board? If so, that could be a useful tool for the 81% of managers who cite retaining top talent as one of their primary concerns.
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While people are attracted to contract work versus permanent employment for a variety of reasons, some of the advantages align well with younger professionals’ needs and expectations for the workplace, including greater choice in when and where they work.
“Work-life balance is a clear priority for Gen Z, and for a lot of Millennials, as well,” said Lucy Marino, executive director, marketing and creative at Robert Half. “And the flexibility inherent in contract work makes it very appealing to many younger professionals.”
“Contracting puts control of work-life balance in a professional’s own hands,” added Dan DeNisco, senior vice president, management resources at Robert Half. “In theory, they can decide to work just 20 or 30 hours a week — or 40 or 50, depending on their needs. And they can often pick and choose the days of the week they work, at least to an extent.”
The same is true when it comes to work location: Many contract professionals have more remote work options than permanent employees. While some companies are calling employees back to the office after enjoying remote or hybrid work options for the last few years, those return-to-office mandates often don’t apply to contract talent, giving them the advantage of not spending as much time and money commuting.
What many managers may not realize is that a number of the advantages of contract work can be closely replicated for permanent employees. And that can be a boon not only for retention but also recruiting.
The most obvious may be remote options. Many firms already allow this flexibility where it makes sense throughout the organization, but those that don’t should consider offering it to permanent staff, especially professionals from younger generations.
“If you’re misaligned with what young professionals want from their job, it’s going to cause a real challenge around retaining your best people,” Rob said. “A lot of young workers are drawing a line in the sand about working in an office five days a week — and they don’t see a future for themselves in an organization that’s demanding that.”
“I still see it with some of my clients,” added Dan. “Managers who are reluctant with remote work options and flexible schedules are less successful at retaining their best people. And when they need to replace the staff they’re losing, they aren’t attracting the best possible talent, whether it’s for a permanent or contract role.”
“On the other side of it,” said Lucy, “If you offer flexible or hybrid options to your full-time employees, contract talent you’ve engaged see that and are more likely to want to continue working with you or join the team if there’s opportunity for that.”
Having a constantly changing array of assignments is another feature that draws people to contract work, especially younger professionals who want to waste no time building up their skill sets and advancing in their career.
“There’s a diversity of people and types of jobs you’re exposed to as a contract worker,” Dan said. “And technology, too — you can get hands-on experience and learn about the newest tools and advancements with tech like generative AI, cybersecurity, automation and ERP systems.”
“They can also gain experience with a variety of industries and responsibilities while on different assignments,” Rob said. “That kind of exposure to different projects, different tools and different roles can help young professionals build up an impressive resume in a relatively short time compared to someone who might need to wait for such varied opportunities to open up while working full-time at one company.”
Added Lucy, “Contract talent also tend to experience an assortment of office cultures and can learn a lot about what they want or don’t want in a work environment. A full-time employee in a company with a toxic workplace culture may feel stuck, but an interim worker can decide they don’t want to work with that client again, in part because they know where better options exist.”
Here again, businesses can also bring some of these advantages to their permanent staff.
“When it comes to variety of work,” Dan explained, “it’s simple to expose employees to other parts of the business. Give them projects that allow them to collaborate with different teams and work with company leaders. Those kinds of interactions can be key career builders because they create excellent upskilling and mentoring opportunities.”
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Providing a chance for experience in a variety of areas can not only aid in retention but also with giving staff a more well-rounded professional experience — a win-win for employees and the company.
“Especially for younger workers,” added Rob, “that ability to work on different things, from collaborations to stretch assignments, gives them a real feeling of not only building skills but of handling new responsibilities. It’s upskillng in addition to a confidence boost.”
“Upskilling also gives employees a feeling of being respected and belonging at a company,” said Lucy. “This boosts both retention and recruitment efforts by creating a company culture that employees want to stay in and other professionals want to join.”
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The desire of many members of Gen Y and Gen Z to pursue contract work reflects their strong preference for work-life balance, flexibility, autonomy and the ability to take control of their career path.
Adapting for permanent employees some of the advantages contract professionals enjoy allows businesses to offer the foundational advantages of both worlds to all members of the multigenerational workforce: the stability and benefits of permanent employment combined with the dynamic and professional growth aspects of contract work.
