Contingent Work Force – Who are they?
Contingent workforce is also known with the names such as independent contractors, freelancers, consultants or other outsourced and non-permanent/temporary workers who are hired on a contract or per project basis. The contingent workforce usually consists of a labor pool whose members are hired by an organization on an on-demand basis.
Organizations usually hire contingent workers or staff directly or from a staffing agency with workers or candidates being added on an ad-hoc basis to the concerned company’s workforce to work either onsite or remotely.
The contingent workforce receives fewer benefits and less pay than full time workers or employees. These workers even though are not on the company’s payroll but do provide important services to the concerned organization. The contingent workforce has more control over their own work than full time or direct employees of a company do.
Benefits of hiring or using a contingent workforce – An overview
Hiring the services of the contingent workforce to have certain advantages or benefits that include the following ones-
- Cost Savings
The best reason for hiring the contingent workforce by organizations is the cost savings that come with this type of hiring. Enterprises going in for contingent workforce do not have to pay for non-productive time nor downtime that may occur during the commencement of the projects.
Contingent workforce is not entitled to the same type of benefits that need to be paid to regular employees such as sick leave, vacation time, holiday pay and health insurance resulting in enormous cost savings for the organization. Saving money on benefits as well as the elimination of annual salaries is a big relief for many enterprises.
- More Flexibility
Hiring a full time or permanent employee is itself is a big commitment but when hiring a contingent worker there is no specific commitments required on part of the hiring party or the organization.
Hiring contingent workers give more flexibility to the organization as they are only hired for a specific period. In addition, enterprises can open up the job to attract a wide array of job seekers that is important for finding individuals with technical and specialized skills.
- Bridging the skill gap
With the shortage of skills and technical expertise in certain sectors of businesses, the contingent workforce with specialized skills and technical knowledge can bridge or supplement the internal talent capabilities required for an organization for a particular job position. While highly skilled workers may be expensive to hire on a full time basis but the costs are more economical or acceptable when they are only hired temporarily when needed.
- Better job security
The contingent workforce at times often serves as a buffer zone that allows stable employment for the “core” workforce. When an economy is in doldrums, enterprises get an opportunity to use labor fluidly through contingent workforce and adapt strategies for expanding and reducing hours with minimal effect on the employment of the core workforce.
In addition, the permanent employees or core workforce are protected from major upheavals in an economy with the contingent workforce are given the layoff notices if job cuts are made by an organization.
Finally, it can be concluded that organizations can derive benefits from employing contingent workforce to get ahead of its competitors.