Contingency staffing, or temporary and contract hiring, allows businesses to adapt quickly to changing workforce needs by employing non-permanent workers. This approach has gained significant traction, with contingent workers making up 30-40% of the U.S. labor market, a number projected to reach 50% by 2050.[1] Globally, the contingent workforce management market, valued at $175.9 trillion in 2022, is expected to grow at a 10.1% CAGR, reaching $378.1 trillion by 2030. [2] As companies seek greater flexibility and cost efficiency, contingency staffing continues to be a vital workforce strategy. That said, let’s take a look at how to find contingency staff, best practices, and some case studies.
How Contingency Staffing Agencies Find Talent
Contingency staffing agencies leverage multiple channels and strategies to identify and place qualified candidates efficiently. Their process typically includes:
- Job Boards & Online Platforms – Agencies use job sites like Indeed, LinkedIn, and Dice to post openings and source active job seekers. Many also utilize AI-driven applicant tracking systems (ATS) to filter and match candidates.
- Talent Pools & Databases – Agencies maintain extensive databases of pre-vetted candidates, allowing them to quickly fill roles with professionals who have already been screened and assessed.
- Networking & Referrals – Recruiters actively build relationships within industries and rely on referrals from past placements, leveraging personal connections to find high-quality candidates.
- Social Media Recruiting – Platforms like LinkedIn, Twitter, and Facebook help agencies engage passive candidates—those not actively job hunting but open to opportunities.
- Direct Outreach & Headhunting – For specialized roles, recruiters proactively reach out to candidates with in-demand skills, often targeting professionals currently employed elsewhere.
- Partnerships with Training Programs – Some agencies collaborate with trade schools, universities, and workforce development programs to access fresh talent before they enter the job market.
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Strategies for Managing Contingency Staffing
1. Proactive Workforce Planning
- Develop a Contingency Staffing Plan: Identify the number, skills, and expertise needed for temporary staff in different scenarios.
- Build a Resource Pool for Emergencies: Create a database of pre-vetted candidates from past applicants or trusted sources.
- Implement Workforce Forecasting Tools: Use data analytics to predict staffing needs and proactively manage workforce gaps.
2. Operational Efficiency & Compliance
- Develop a Rapid Hiring Process: Streamline screening, background checks, and onboarding to expedite hiring during emergencies.
- Stay Compliant with Labor Laws: Ensure legal compliance regarding contracts, wages, and workplace safety.
- Define Clear Roles and Responsibilities: Ensure contingency staff understand their duties, expectations, and reporting structure to minimize confusion.
- Maintain Relationships with Staffing Agencies: Partner with reputable staffing firms to quickly access qualified candidates when needed.
3. Talent Engagement & Retention
- Train and Onboard Temporary Employees: Provide clear job training, company policies, and cultural orientation.
- Retain Top Talent: Encourage professional growth through training, mentorship, and career development.
- Provide Competitive Compensation and Benefits: Offer fair wages and incentives to attract high-quality contingency workers.
- Create a Knowledge Transfer System: Maintain documentation and training resources so new hires can quickly get up to speed.
4. Agile Workforce Integration
- Cross-Train Permanent Employees: Train full-time staff in multiple roles to cover critical functions during unexpected staffing shortages.
- Build a Contingency Culture: Foster an adaptable work environment where full-time employees and temporary staff collaborate effectively.
- Set Up Clear Communication Channels: Ensure temporary staff understand their roles, job expectations, and key contacts.
- Use Technology for Efficient Scheduling: Implement workforce management software to optimize shift planning and track contingent staff availability.
5. Performance Monitoring & Optimization
- Track Staffing Success Metrics: Measure key factors like time-to-fill, retention rates, hiring costs, and staff feedback.
- Conduct Performance Reviews: Regularly assess temporary staff performance and the effectiveness of the staffing process.
- Enhance Staffing Strategies Based on Data: Continuously improve workforce planning by analyzing hiring trends and performance data.
Examples of a Successful Contingency Staffing Plan
Amazon’s Contingency Staffing for Peak Seasons
Many companies have created successful contingency staffing plans. One good example is Amazon [3], which relies on temporary staff to handle increased demand during peak periods such as the holiday season or major sales events. To ensure the quality of their temporary staff, Amazon conducts extensive background checks and training programs. [4] Amazon also offers its temporary employees a pathway to permanent employment [5], which has proven to be an effective way of retaining talent and maintaining productivity.
The company has been successful in maintaining productivity and meeting customer demand during times of crisis or increased workload. Its contingency staffing plans have proven to be effective not only in ensuring business continuity but also in providing opportunities for temporary employees to gain valuable experience and potentially secure long-term employment.
Walmart’s Emergency Staffing Strategy
Walmart has developed a contingency staffing plan that includes hiring seasonal workers and maintaining a pool of trained associates who can be deployed to high-demand areas. For example, during the peak of the 2020 pandemic, Walmart reported hiring 150,000 temporary workers to work in stores, clubs, distribution centers, and fulfillment centers. Since they were mass hiring, the company said they planned to expedite the application time from two weeks to 24 hours.[6]
To ensure smooth operations, Walmart used digital scheduling tools and cross-trained employees in multiple roles, allowing them to switch positions as needed. This strategy improved workforce agility and minimized disruptions.
Toyota’s Earthquake Recovery
In 2011, Toyota's operations were significantly impacted by the earthquake and tsunami in Japan, which disrupted global supply chains. However, Toyota's robust contingency plan, which included a diversified supplier base and an efficient communication system, allowed the company to recover faster than its competitors. This strategy minimized financial losses and showcased the resilience of its operations.[7]
Starbucks’ Hurricane Preparedness
Starbucks has faced various potential disruptions due to hurricanes and other natural disasters. Their contingency planning involves a comprehensive approach that includes employee safety protocols, store closures, and community support initiatives. By preparing in advance, Starbucks has been able to reopen stores quickly after a disaster, sometimes providing free coffee to emergency workers and affected residents, reinforcing their community presence and commitment.[7]
Following in its footsteps can provide inspiration and insight on how to make your own contingency plan successful.
Conclusion
The future of contingency staffing will be driven by technology, agility, and a growing emphasis on workforce experience. As remote work, AI-driven hiring, and economic uncertainties reshape labor markets, businesses will increasingly rely on flexible staffing models to stay competitive. Companies that integrate predictive analytics, automation, and strategic workforce planning will streamline hiring, improve compliance, and enhance contingent worker engagement. Rather than being a temporary fix, contingency staffing will become a core component of workforce strategies, enabling organizations to scale efficiently, adapt to market shifts, and build a resilient, high-performing talent ecosystem.
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