Flexibility and Skills: Why Contingent Work is Winning Over Gen Z

The "try before you buy" aspect of contingent work is a major draw for Gen Z, and increasingly, other generations as well. While contingent work (temporary, project-based hiring) has often been viewed as a less desirable career path, Gen Z is embracing its potential. This shift in perspective benefits both workers and the organizations that hire them.

Historically, contingent work has struggled with a perception of being less valuable than full-time employment. Many Boomers, Gen X, and Millennials value job security and often see it as a temporary solution rather than a long-term career strategy. However, Gen Z's focus on flexibility and skill development aligns perfectly with the opportunities contingent work offers.

This generation is already accustomed to the idea of "for-now" decisions in career exploration, recognising the freedom to change paths while building transferable skills. Contingent work extends this philosophy into their actual careers.

Dustin Burgess, SVP of Strategic Advisory at Magnit, emphasises the changing perception of contingent work: "Historically, contingent work has been associated with less valued, temporary roles that some view as less impactful than full-time positions. 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 organisations.”

Several factors contribute to Gen Z's openness to contingent work:

• A Challenging Job Market: With hiring slowing and layoffs increasing, especially for new graduates, temporary roles offer a viable way to gain experience and income. Burgess notes the high layoff rate in Q2 2024 and the slower-than-expected hiring rates, suggesting this trend will likely continue. Furthermore, many available full-time positions may not align with Gen Z's preferences for flexibility and work-life balance.

• Skill Development: 76% of Gen Z actively seek opportunities to learn new skills, recognising their importance in the current job market. Contingent work allows them to acquire practical experience and specialised skills, making them more adaptable and marketable.

The Advantages of Contingent Work:

1. Flexibility: 77% of Gen Z prioritise work-life balance. Contingent work offers this flexibility, accommodating personal priorities and responsibilities. Companies also benefit from workforce agility, avoiding the costs and potential brand damage associated with long-term commitments and layoffs.

2. Exploration: Temporary roles allow young workers to explore different career paths and industries before committing to long-term. This "test run" helps them discover their passions and build foundational skills. Conversely, employers can evaluate potential full-time hires in real-world settings and assess their actual skills, aligning with the rise of skills-based hiring.

3. Learning & Development: Contingent work provides valuable opportunities for career growth and skill development. Project-based roles allow workers to gain specialised technical, client service, project management, and problem-solving skills, boosting their confidence and future prospects.

4. Networking: Temporary roles offer valuable networking opportunities across various roles and industries, potentially leading to future career opportunities and smoother transitions into other project-based positions or even full-time employment.

Addressing Concerns and Embracing the Opportunity:

While the temporary nature of contingent work can be a deterrent for some, especially those seeking structure and job security, Burgess recommends focusing on the benefits.

Contingent work allows individuals to tailor their career experiences, develop in-demand skills, and build a resume that showcases adaptability, a willingness to learn, and a strong 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," Burgess concludes. In a challenging job market, contingent work can be the key to career advancement for young professionals.