flexible-workforce

The Flexible Workforce Solution Fueling Business Reinvention

In this shifting landscape, finding skilled professionals across borders has become a top challenge. Deloitte’s 2024 Global Workforce Trends report reveals that 71% of CEOs rank talent shortages as their primary obstacle to reaching business objectives. As a solution, companies increasingly depend on contingent workers to bridge skill gaps, enter new markets, and drive growth. This reliance underscores the importance of global mobility—both in hiring international talent and ensuring compliance with local regulations.

Global mobility professionals are pivotal to these efforts, ensuring companies expand seamlessly into new territories by navigating complex immigration, legal, and tax obligations. In Europe, 28.3 million contingent workers were active in 2022, while the US recorded over 72 million in 2023, comprising nearly 45% of the workforce. With contingent professionals now contributing over $1.3 trillion in US revenue alone, global mobility experts are critical to maximizing this workforce’s potential, managing cross-border logistics, and fostering smooth onboarding and compliance.

Contingent workers, also known as independent contractors, freelancers, or gig workers, are hired on a temporary basis—whether for specific projects or fixed periods. Unlike permanent employees, their roles often support non-core business functions, providing flexibility and agility.

Global mobility professionals support these hiring efforts, ensuring that companies adhere to the unique labor laws and contractual obligations in each location. This includes the delicate process of setting up proper tax structures, clarifying worker classification, and handling visas when workers cross borders. Proper classification and compliance are essential to managing contingent talent effectively, avoiding costly misclassification issues, and preserving the organization’s reputation.

Business reinvention begins with global talent mobility

With 70% of CEOs acknowledging that business transformation is essential for sustainability, global mobility professionals provide an adaptive workforce strategy in the face of rapid change. The Accenture 2024 Pulse of Change Index reports that business change has accelerated 183% since 2019, with executives expecting this pace to continue. Pressured by advancements in AI, global health crises, and supply chain issues, nearly half of CEOs worry their business models may not be viable in the next decade.

This uncertain environment drives the demand for a workforce that is both agile and globally mobile. By facilitating the hiring and onboarding of international contingent workers, global mobility professionals enable companies to adapt quickly to market demands, tap into new talent pools, and access niche skills globally. Their expertise in navigating international compliance requirements, such as the EU’s Platform Work Directive, ensures that these flexible arrangements protect worker rights and meet the organization’s strategic goals.


Mitigating compliance risks through global mobility

Contingent labor offers companies adaptability, but it comes with risks, particularly around worker classification and compliance with local regulations. Misclassifying workers can have serious financial and legal repercussions. Recently, companies like Nike faced potential fines exceeding $530 million for misclassifying contractors, underscoring the need for careful management of contingent hires.

Global mobility professionals help mitigate these risks by ensuring compliance with international employment laws and managing the complexities of cross-border hiring. In a Deloitte survey, 46% of organizations reported that compliance challenges are among their top concerns with cross-border work arrangements. Leveraging the expertise of global mobility teams or third-party providers allows businesses to reduce compliance risks, manage payments accurately, and meet local labor standards.

Choosing the right contingent staffing model

Deciding on a contingent staffing model depends on a company’s goals and risk tolerance, as well as the complexities of international compliance. Global mobility teams are essential in assessing these models to ensure they meet both business objectives and regulatory standards.

  1. Managed service providers (MSP): Often suitable for outsourcing specific non-core functions, MSPs relieve companies of certain administrative burdens by managing back-office or technical support.
  2. Staffing agencies: These firms fill short-term roles without the commitment of a permanent hire. Ideal for quick placements, staffing agencies are supported by global mobility teams to ensure compliance with each region’s unique labor laws.
  3. Agent of record (AOR): An AOR manages contractor classification, taxes, and compliance. This model is especially useful for companies expanding internationally, as it reduces the risks associated with direct contractor engagement.
  4. Employer of record (EOR): For businesses entering new markets, an EOR can handle full HR functions, from onboarding to payroll and compliance. Global mobility professionals collaborate with EORs to manage the complexities of hiring in new regions, ensuring a smooth and compliant process that meets local standards.

Best practices in global contingent workforce management

Managing an international contingent workforce is complex. Each country has unique laws regarding classification, taxation, and employment rights, and mistakes can lead to penalties. Missteps in contractor classification, especially in countries with stringent labor laws, can result in steep fines and operational disruptions.

Global mobility experts guide businesses in handling these challenges, often using centralized platforms to manage global hires. Partnering with solutions like Velocity Global streamlines the classification, onboarding, and payroll processes across multiple jurisdictions, helping companies reduce regulatory risks and optimize their global workforce.

Transitioning contingent workers to full-time roles

Contingent workers often represent a stepping stone for businesses exploring new markets or project-based growth. As projects mature, companies may wish to transition these workers to full-time roles, especially when their contributions become central to business success. Global mobility teams oversee these transitions, ensuring they comply with local employment laws and support workforce stability. By converting contingent talent into permanent roles, businesses retain critical skills, build loyalty, and foster long-term growth.

In a globalized business environment, contingent workers and global mobility experts provide flexibility and resilience, enabling companies to scale, adapt, and operate compliantly across regions. From startups expanding into new markets to multinationals needing specialized skills, a flexible talent strategy anchored in global mobility has become essential to sustaining growth and innovation.