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Skip to main contentAugust 10, 2025
Contingent hiring used to be a short-term fix for temporary projects. Today, it’s a core part of how organizations build agile, high-performing workforces.
Whether it’s interim executives leading transformation or specialist contractors filling urgent skills gaps, contingent workers are reshaping workforce strategy at every level.
But getting it right requires more than just filling seats quickly. Talent leaders need to think long-term, balancing cost, compliance, culture, and capability.
Here’s how to use interim talent more strategically.
Question: So, what is a contingent worker or an interim consultant?
Michael Distefano: Well, back in the 90s, when I started my career, they tended to be people who came in for a short period of time, either into accounting or technology. And they did a role, and they moved on. But quite frankly, I didn't know many of those people over the past few decades, the rise of the contingent worker has suited both the organization as well as the person. For the person, it's a great opportunity to control your own career destiny, to work with great companies, to have impact and keep your skills fresh, and then kind of move on. For the organization, you get great talent with those great skills, but only for a finite period of time. The more and more clients are saying, you know, I need a permanent workforce, but I also need a strong, contingent workforce. And today, something like 30 to 40% of the U.S. workforce identifies as a gig economy worker. We think after Covid, everything's changed, and today we're starting to see org charts that have permanent workforce, contingent workers, and AI agents all included on the org chart for the organization. So, the paradigm of today's workforce continues to unfold. The interim and contingent workers play a huge role in it. And I hope you enjoy this article.
Organizations aren’t just hiring contingent workers because they can. They’re doing it because it’s a smart move.
Skills shortages, project demands, and the pressure to stay lean are driving a new kind of workforce agility—and contingent labor is central to that shift.
“In 2021, about 25% of the US workforce was contingent workers,” says Michael Distefano of Korn Ferry. “Today, that number is closer to 35%. And this figure will likely rise to 60% by 2032.”
The use of contingent workers has evolved. What was once reactive and transactional is now planned and central to long-term workforce strategy.
What’s driving this shift?
The rise of flexible executive roles signals a strategic rethink.
Organizations are increasingly bringing in interim C-suite executives or fractional leaders with specialist skills to lead high-impact transformations. These seasoned professionals take on executive or senior leadership roles on a part-time, temporary, or project basis.
This approach delivers faster access to top leadership while avoiding the cost and long-term commitment of permanent hires.
While contingent work was once dominated by IT and finance, today it spans HR, marketing, legal, supply chain, and operations.
Many professionals now prefer flexible, meaningful roles over traditional full-time work, contributing to a fast-growing talent pool. Korn Ferry research shows flexibility around location, schedules, and benefits is a top talent trend right now.
More companies are shifting from role-based to project-based work, especially in marketing and finance, where demand for contingent talent is growing fast, says Korn Ferry’s Evan Miller, Vice President of RPO.
“These workers tend to be more outcome-focused, delivering specific project results with a different, results-oriented mindset,” he explains.
This shift calls for workforce planning that includes on-demand expertise from the outset—not as backup, but as part of the plan.
The bottom line?
Interim talent is no longer a last-minute fix. It’s a proactive way to stay ahead of business challenges, without adding long-term headcount.
Done right, contingent hiring gives organizations the ability to act faster and spend smarter.
It also brings in specialist knowledge that may not exist internally, helping teams move the dial on strategic goals.
Distefano shares an example of the former CIO of a multibillion-dollar business who now works as an interim leader, helping smaller firms build e-commerce and supply chain infrastructure.
“She’s able to quickly identify talent gaps, create a plan, and help the business scale—at a fraction of the cost,” he says.
When a global financial services firm faced critical tech challenges threatening the timeline of its digital banking expansion, Korn Ferry quickly deployed six interim tech experts through its Trilogy International network.
Embedded for 18 months, these professionals steered the platform to successful completion. The firm completed hiring in just two weeks, reduced project costs by 23%, and gained clearer oversight of its tech recruitment—all while keeping the transformation on schedule and on budget.
Despite the clear upsides, contingent hiring isn’t without its pitfalls. Without the right oversight, organizations risk compliance breaches, cultural gaps, and wasted spend.
Here’s what to watch out for, and how to stay ahead:
Many countries legally limit how long contingent workers can be engaged before they must be treated like full-time employees, with benefits and protections. Ignoring these rules can lead to costly penalties and legal challenges.
Use a managed service provider (MSP), a specialized third-party company, to handle elements like payroll and compliance.
“An MSP can oversee legal compliance, but also that of each individual contingent worker, making sure they’re getting paid and taxed correctly,” says Miller.
This mitigates legal risk before it becomes a problem.
When contingent workers are sourced through multiple agencies, HR loses control over who’s on the team, as well as total spend, leading to poor workforce management.
Centralize workforce management. For example, one of Korn Ferry’s Australian financial services clients saved AU$400,000 annually by consolidating contractor spend, streamlining vendors, and moving all interim hires onto a single payroll system.
Contingent workers can feel left out if they’re not integrated into the team. This can hurt morale and dampen performance.
Treat them like core team members. Clear onboarding, defined goals, and team inclusion go a long way. “If they feel trusted and engaged, they’ll be more productive—even in a short-term role,” says Distefano.
After a major spin-off, a fast-growing beverage company urgently needed finance and HR capabilities. Korn Ferry quickly placed interim and permanent leaders—including an HR head to lead training and union talks, and senior finance hires to boost profitability and systems.
Within weeks, the business strengthened leadership, improved cost control, and set the foundation for scalable growth.
Strategic use of interim workers isn’t just about who you hire. It’s about how you plan, onboard, measure, and integrate them into your workforce strategy.
Here are some tips for effective contingent workforce management:
Before bringing in contingent workers, first assess your permanent workforce:
Then challenge your workforce plan by identifying where flexible talent can boost productivity and speed up delivery. Create one integrated, agile strategy that blends permanent and contingent workers.
Temporary workers are hired for specific projects or time frames. It’s crucial to set clear boundaries around their work so they don’t get pulled into unrelated tasks.
Be clear on how long the project will last and agree on measurable milestones before the work begins. This clarity helps keep everyone aligned and ensures smooth handovers.
Don’t treat interim talent like second-class citizens. Inclusion and engagement matter, even for short-term roles.
Many organizations struggle because contingent workforce programs are fragmented and lack clear visibility of who is working where. Make onboarding a priority by helping flexible talent understand your culture, tools, and goals to boost productivity and retention.
Focus on data that tracks real outcomes rather than just hours worked or contract terms.
Measure the return on investment, just as you would for full-time employees, by evaluating project results, the impact on the team, and how knowledge is transferred.
The workforce is changing. A blend of permanent and contingent talent is no longer a stopgap situation. It’s a new operating model. And it's giving organizations that embrace this shift a competitive advantage.
But success doesn’t come from simply hiring more contractors. It comes from treating contingent workforce planning as part of a holistic talent strategy—grounded in culture, capability, and cost.
Ready to take the next step? Learn how to identify the critical skills your workforce needs to stay agile and grow.
