Contingent employment denotes to workforces without an implied or obvious agreement for work in the long-period. It normally comprises of temporary or part-time occupations.
Contingent employment is not completely a neutral word since it is looked upon as a social issue. Globalization has had a significant influence on the increase in using the contingent labour.
It contributed to fast development in various sectors, augmented outsourcing and facilitated a requirement for flexibility and speed to stay competitive. Firms are in a position to reduce costs by securing the services of contract workers.
The contingent workers perform the role of variable employees for firms to choose from to conduct projects or comprehensive specialized projects.
Again, as firms try to become very agile and expeditiously respond to change, they look at the contingent employee to have access to professionals on a need basis.
They also realize the prospect to decrease the benefits and retirement costs by employing the contingent employee.
Nevertheless, there is a risk involved in avoiding these costs if a worker is incorrectly categorized as a contingent employee. Using the services of the contingent employee is very cost-effective because it facilitates modifications to employment levels and costs based on the type of expertise and the labour requirement.
Movements in the contingent workers are also influenced by the economy. According to a research by MPS Group (a professional service firm), in a robust economy, the need for contingent employees is high. Organizations are seeking growth opportunities, and contingent workers enable them to engage with specialists on a need basis, without the long-run costs of recruiting them.
An information-oriented economy also contributes to the utilization of the contingent workers since organizations depend on their subject matter expertise.
Advantages of Contingent Employment
- Flexibility in category and volume of employment resources.
- Cost reduction (benefits and tax).
- Real-time access to external know-how.
- Savings in the long-run compensation costs.
Disadvantages of Contingent Employment
- An absence of loyalty to the organization.
- Impacts the organization’s core values.
- Enhancement in the training costs.
- Workforce carries the complete risk, restricted benefits.
Contingent employees may not have the same rights as regular employees, but, they would still have various lawful safeguards in place to ensure dishonest organizations do not take benefit of them.
They are also eligible to a secure workplace that conforms with OSHA (Occupational Safety and Health Act) guidelines.