Updated on: May 20, 2025
Key Takeaways:
- Contingent staffing is now a core strategy, offering agility, cost savings, and access to specialized talent amid economic and skills pressures.
- Global workforce management demands expert compliance, as businesses face rising legal, cultural, and logistical complexities.
- AI is standardizing workforce operations, streamlining hiring, forecasting needs, and automating key management tasks.
- Multigenerational workforce dynamics require tailored strategies, with Gen Z and Boomers shaping expectations around flexibility, tech, and purpose.
- Skill-based hiring is replacing traditional credentials, enabling faster, more precise matching of talent to contingent roles and projects.
The New Era of Workforce Management
The workforce isn’t just evolving — it’s shifting at breakneck speed. The developments of 2024 set a clear trajectory: global mobility, tech-enabled processes, and an increasingly diverse employee base are no longer “emerging” trends; they’re the standard.
In 2025, companies are doubling down on agility, leaning on flexible staffing models and technology to stay competitive. The global contingent workforce is growing steadily, fueled by economic pressures and an increased demand for specialized skills.
At the same time, AI in workforce management is gaining serious traction, reshaping how businesses hire, manage, and scale teams. And with a multigenerational workforce — from Gen Zers entering the field to Baby Boomers delaying retirement — leaders must develop nuanced strategies to meet a wide range of needs and values.
These shifts point to broader workforce management trends that will define success in the coming years.
Top Contingent Workforce Trends
Below are the biggest 2025 workforce trends we see impacting the future of the contingent workforce that leaders should keep an eye on:
1. The growing market for contingent workers.
In the past, contingent workforce programs were side strategies or one-off contractor hires. That’s no longer the case. Today, these programs are robust, scalable, and central to many organizations’ workforce strategies. In fact, the global contingent workforce management market is expected to reach $465 billion by 2031, a compound annual growth rate of 10.5% from 2022 to 2031.
Businesses are turning to contingent staffing to increase agility, address skill gaps, and reduce operational costs. A November 2024 report by the Bureau of Labor Statistics found that 4.3% of U.S. workers (6.9 million people) held contingent roles as their main job in 2023 — a steady increase that reflects how integral this workforce has become. Companies are also navigating an uncertain economic climate by leaning into contingent workforce trends, such as the rise of highly skilled freelancers and project-based work, that offer more flexibility without compromising productivity.
However, adopting a contingent model doesn’t come without challenges. Compliance, classification, payroll, and talent engagement all demand structured oversight. That’s why many companies are formalizing their approach through comprehensive programs that can flex across departments and regions. A , like Innovative Employee Solutions (IES), supports these efforts by helping companies build end-to-end compliant, efficient, and scalable contingent workforce programs that meet both today’s demands and tomorrow’s goals.
2. Compliance and coordination with global workforce.
The expansion of the global contingent workforce has opened doors to incredible talent — developers in Lagos, designers in Buenos Aires, consultants in Lisbon. But managing teams across time zones and legal jurisdictions adds serious complexity.
From handling international payroll to navigating local labor laws, employers must stay vigilant. Misclassifying workers or failing to comply with tax regulations in one country can create legal liabilities across the board. Cultural nuances also matter; how workers expect to be managed, compensated, and recognized varies widely by region.
One recent example of changing international compliance expectations is the EU’s Platform Workers Directive, which went into effect on December 1, 2024. Although EU Member States have two years to implement the Directive into national law, it signals a shift toward greater protections and transparency for those engaged in platform work. The Directive impacts digital labor platforms operating in the EU — regardless of where they’re based — and includes provisions on employment status presumptions, algorithm regulation, and mandatory transparency. For companies managing a global contingent workforce, developments like this reinforce the need for proactive legal strategies and expert guidance.
That’s where EOR and AOR services come in. These partners absorb legal risk and administrative burden, allowing companies to hire across borders without setting up a legal entity in every country. They handle everything from onboarding to compliance to payroll, so businesses can focus on execution. IES specializes in global EOR solutions, helping organizations confidently build cross-border teams.
3. The standardization of AI in workforce management.
If 2024 was about testing the waters, 2025 is when AI becomes standard issue in workforce planning. Businesses are leveraging AI in workforce management to make faster, smarter decisions at every stage of the employee lifecycle.
AI-driven platforms are automating repetitive tasks — think résumé screening, interview scheduling, and onboarding workflows. But beyond that, AI is being used for predictive analytics: identifying when and where teams will need talent, forecasting budgetary impacts, and even flagging compliance risks in real time.
Adoption is accelerating. As of late 2024, 75% of surveyed employees were already using AI at work, with nearly half starting within the past six months. For roles like programming, AI tools have increased output by over 120% per week. In the U.K., one pilot program showed that workers could save more than 120 hours a year just by automating admin tasks with AI.
4. Shifts in the multigenerational workforce.
The multigenerational workforce is more complex — and more valuable — than ever. With Baby Boomers, Gen X, Millennials, and Gen Z all active in today’s labor market, employers face both the challenge and opportunity of aligning vastly different experiences, motivations, and communication styles within a single workforce strategy.
Younger generations are bringing in fresh perspectives. By 2025, Gen Z will make up more than 25% of the workforce, and their values are reshaping workplace expectations. Flexibility, purpose-driven work, and a strong focus on DEI and sustainability are high on their priority list — traits that align well with the nature of contingent roles, which tend to offer more autonomy and adaptability than traditional full-time positions.
Meanwhile, Baby Boomers are staying in the workforce longer than expected: 88% are still engaged in full-time, part-time, or temporary work, and 47% plan to keep working through 2025. Financial pressures are a key factor: 35% of Baby Boomers say they’re unsure about retiring due to inflation and the rising cost of living.
For employers, this generational mix demands tailored workforce strategies. Communication styles differ (i.e., Slack versus email), so do expectations around work-life balance, feedback, and career development. A robust contingent workforce program should consider these generational nuances, offering different types of roles, onboarding methods, and engagement strategies that speak to the needs of a diverse employee base. By understanding and responding to generational dynamics, companies can foster inclusion, boost productivity, and make contingent work more effective for everyone involved.
5. Skill-based hiring as a cornerstone of talent acquisition.
Degrees and job titles are losing ground to real-world capabilities. Skill-based hiring is quickly becoming the dominant strategy for filling both full-time and contingent roles, especially as companies race to plug skills gaps in tech, marketing, and analytics.
According to Mercer, insufficient upskilling and reskilling is the top risk to business growth in 2025. That’s why businesses are shifting from rigid role requirements to flexible project-based hiring. This shift is particularly beneficial for contingent roles. Mercer found that 45% of companies are already identifying the skills and roles best served by gig workers.
Whether a company needs a cybersecurity expert for a two-month audit or a bilingual marketer for a global campaign, skill-based hiring opens the door to talent that’s often overlooked in traditional pipelines. Freelance platforms, direct sourcing, and talent clouds are also making it easier to pinpoint the exact skills needed.
How IES Can Streamline Your Contingent Workforce Management
The right partner can make or break your ability to manage changing contingent workforce trends. IES provides best-in-class support for contingent workforce programs, from domestic and global EOR and AOR services to compliance audits and scalable onboarding. Whether you’re a mid-sized business or enterprise company managing or 1,000+ workers, IES ensures that you’re covered legally, operationally, and strategically.
Ready to future-proof your workforce strategy? Explore IES’s global EOR services here or request a proposal today.
Written by: Kara Hertzog, President of IES
Kara Hertzog is president of Innovative Employee Solutions (IES), a leading provider of remote and contingent workforce solutions specializing in global Employer of Record, Agent of Record, and Independent Contractor compliance services in 150+ countries. Founded in 1974, IES is a woman-owned business, certified by the WBENC, and partners with companies to provide compliant employment solutions that empower people’s lives.
