The ‘try before you buy’ nature of contingent work is a major selling point for Gen Z workers—and the rest of us.
Contingent work—for which people are hired on a temporary, project-by-project basis—has always had to battle against the perception that it is a ‘lesser’ career option. Many Boomers, Gen X and Millennials, who value the security of a full-time role, often see contingent work as unimportant to the long-term mission of the company—just a ‘for now’ stopgap solution.
But what if ‘for now’ is all that Gen Z workers are interested in?
In my work with educational, business and community organizations, I share the power of the ‘for-now’ decision, that allows young people to pick a career aspiration that we don’t hold them to. They’re free to change their minds at any time as they work toward developing the professional skills that will serve them no matter where they go. With the pressure off, exploring careers can be interesting—dare I say, even fun.
Now, through contingent work, Gen Z is discovering the opportunity to take the ‘for-now’ decision beyond career exploration into their actual careers. And it comes with a host of benefits they’re eager to exploit.
“Historically, contingent work has been associated with less valued, temporary roles that some view as less impactful than full-time positions,” says Dustin Burgess, SVP of Strategic Advisory at Magnit. “Breaking these stereotypes is not only a strategic imperative but also a competitive advantage in today’s rapidly evolving workforce landscape as contingent workers are increasingly integral to driving innovation, agility, and expertise within organizations.”
Burgess and I recently connected to talk about the openness Gen Z is displaying toward contingent work and why it’s such a great fit for this entrepreneurial cohort. Here’s what we covered.
In a tough market, Gen Z wants to learn
With 76% of Gen Z actively seeking out opportunities to learn and practice new skills, it’s clear they realize the need to adapt in a changing workforce. And they’ve never needed those skills more. New graduates are finding that the current job market is tough right now, with hiring slowing down and layoffs picking up.
“The layoff rate in Q2 2024 was 8.3%, the highest mark for this quarter in the last five years,” says Burgess. “Usually, we see a September surge each year where hiring is at an all-time high, especially among young demographics and new graduates that are coming fresh off their summer breaks. While September 2024 did beat hiring expectations, the rates are still lower than years past and we’ve seen trends in similar economic environments that signal hiring will remain slow until at least early 2025.”
In addition to these difficult market conditions, Burgess notes that many of the roles available may not meet the shifting expectations of Gen Z: routine, structure and security. “Gen Z has historically been more selective on the job hunt; however, this selectivity can be a detriment to job seekers when the market favors the employer over the employee,” he warns.
In this environment, it’s little wonder that younger workers are turning to temporary roles to make ends meet—and pick up some new skills along the way. In so doing, they may need to overcome their parents’ (and their own) lingering concerns about temporary work.
The pros of contingent work
We discussed four major benefits of temporary work for both workers and the organizations leveraging them:
1. Flexibility: “77% of Gen Z value work-life balance in their career,” says Burgess. “A huge benefit of contingent work is its flexible nature, allowing for balance with outside responsibilities and personal priorities.”
Companies also benefit from the flexibility of contingent work. “Leveraging temporary help allows them to be much more flexible with their workforce, ensuring work gets done without having to commit to costly long-term labor (as well as avoiding layoffs that can impact their brand),” says Burgess.
2. Exploration: “Temporary roles allow young workers to try out a variety of career paths, see what fits their interests best before pursuing an industry long term, and helps them to gain hard and soft skills during the process,” says Burgess. “This ultimately gives Gen Z a test run to find or follow their passions and gain foundational skills that will serve them for the remainder of their careers.”
Of course, the test run works both ways. “Contingent work allows employers to evaluate workers in ‘on the job’ settings before offering them full-time employment,” says Burgess. Additionally, as skills-based hiring ramps up, contingent work gives companies a way to determine which candidates actually have the skills they’re looking for.
3. Learning & development: Burgess believes the main benefit of contingent work is the opportunity it provides for career growth and development of highly valued and needed skill sets. “The practical experience can be applied to future roles, and trying these out on a temporary basis allows for young workers to build confidence in these experiences,” he says.
“Temporary roles are often project-based, allowing workers to develop very specialized skill sets depending on the role. This can include, but is not limited to, technical skills, client services, project management, and problem solving.” These are the types of skills that can translate across a wide swathe of industries and roles, further expanding a person’s future opportunities.
4. Networking: An oft-overlooked perk of temporary roles is the ability to network with colleagues across a variety of different roles and industries. “This could lead to future career opportunities or rapid redeployment into other project-based positions,” says Burgess. “Contingent work may open the door to full-time employment as well, making permanent entry into the competitive job market easier.”
Contingent work for the win
So what might be holding some younger workers back from fully embracing contingent work at this stage of their career? “Its temporary nature can be a deterring factor if they’re prioritizing structure,” says Burgess. “Job insecurity, frequent transitions, limited benefits (depending on the opportunity), and uncertainty about future employment and income can be intimidating.”
To balance these concerns, Burgess recommends a second look at the benefits of temporary roles. “Workers can curate a career experience tailored to their passions and home in on specific skills, which is an advantage that is not always allowed in full-time positions,” he asserts.
This also looks good on your resume, where workers can showcase various individual experiences and highlight a broader soft skill set of adaptability, willingness and excitement to learn and work ethic.
“Contingent work provides an alternative career path with many advantages and opportunities to gain valuable hands-on skills that enhance long-term career prospects,” says Burgess.
At a time when young workers are having a hard time breaking into the labor market, contingent work can become the career win they need to keep moving forward.