What Is Contingent Employment?

Frequently asked questions about data on contingent and alternative employment arrangements. Contingent workers are people who do not expect their jobs to last or who report that their jobs are temporary. They do not have an implicit or explicit contract for ongoing employment.

If you’re a large organization it’s extremely likely that you are already making use of the ever-growing contingent workforce, but if you’re not,then creating a strategy to hire talented non-permanent workers should be top of your agenda in 2019.

The contingent workforce is part of the wider gig economy, and the number of these non-permanent workers in the US has exploded over the past couple of years. In fact, external workers now make up a staggering 30 percent of the entire US Workforce and this is only expected to rise in the coming years.

Why is the contingent workforce increasing?

Just like most aspects of our lives, technology has completely revolutionized the working world. The progression of communication technology has allowed workers and organizations to become more comfortable working with each other outside of the office.

This technology, combined with a generation shift, has freed up workers to work from where they want and has allowed them to choose the company or project they want to work with/on at any given time. For many, non-permanent work simply fits in better with their chosen lifestyle.

Businesses can’t complain either. With shortages in skilled workers a common concern across many industries, organization’s today depend on agile, flexible and on-demand labor if they are to access top talent, prepare for rapid scalability and grow their business.

As a result, these non-permanent workers come with a huge range of benefits for your organization. HCMWorks has listed six key benefits here:

1 - Filling the skills gap

In today’s market, many organizations are finding it increasingly difficult to find workers with critical skill sets. Facing a challenge to bridge skills gaps in their workforce, many are turning to the contingent workforce to acquire top talent.

By making use of the gig economy and hiring external workers, organizations are able to ensure they have access to workers with specialized skills to complete work on a project-by-project basis. This is a great way to supplement your internal talent.

2 - Increased flexibility

Ever felt like your organization is unable to respond rapidly to changing market conditions or unable to scale up or down depending on a certain project? If so, then the contingent workforce would give your business the flexibility it needs.

Non-permanent workers allow your business to respond to the market and its demands as they happen. Your business will be able to quickly respond, change and adapt to market conditions, without the long delay often associated with full-time employees.

3 - Faster and more cost-effective hiring processes

Whether you need contingent workers to deal with your company’s peak season or you need specialized skill for a particular project, contract workers can be brought in quickly and with less red tape than a permanent employee. Experienced contract workers are often available at short notice, and will provide your company with an immediate solution.

Not only is the hiring process faster, it’s also considerably more cost-effective than making a permanent hire. In fact, many of the costs associated with hiring permanent employees can be reduced by engaging with non-permanent workers.

Despite this, contract workers often have higher salaries than staff, your organization will not have to pay them medical benefits, vacation time and sick pay. That’s not to mention the far lower and non-existant costs when it comes to onboarding, training and professional development