Contingent Worker Definition
A contingent worker is defined as someone who works for an organization but is not considered a permanent employee. Contingent workers are also known as freelancers, consultants, seasonal or temporary employees and independent contractors.
With the many advantages that come along with contingent employment, this demographic is reshaping the definition of the workforce. In fact, 40 percent of U.S. workers were employed on a contingent basis in 2010, up from 30 percent in 2005.
Top Benefits of Contingent Workers
The benefits of contingent employment are a two-way street. For employers, it often serves as an integral part of the permanent hiring process, as a contingent worker can be utilized on a trial or temp-to-hire basis before a decision is made regarding heavier investments. And for employees, it’s a great way to “feel out” a company or industry before committing to full-time employment.
Both companies and employees find a number of additional reasons to seek contingent opportunities.
Benefits for employers
- Organizations may experience fluctuating demands for workloads according to the season. A company may need contingent workers for an IT or software project, for example, bringing on individuals to work on a project for six months or a year. Contingent workers can be brought on and let go as capacity dictates.
- Other organizations may experience similar fluctuations according to client deals, new projects or product rollouts. Instead of forcing your existing employees to put in heavy overtime hours, hiring a group of contingent workers can help you push over the hump. When the amount of available work settles down, those workers can be sidelined.
- When insurance and benefits are factored in, a contingent worker is usually less expensive to a company than a permanent hire.
Benefits for employees
- Contingent work allows for the independence and flexibility desired by many people who want to strike a balance between juggling a career with family responsibilities or other demands.
- Contingent work is a fantastic source of extra income that can be earned on the side.
- Contingent employment can be a great way to get a foot in the door and add valuable experience to your resumé, network with others in the industry and seek out additional opportunities.
TalentWave Helps You Engage With Contingent Workers
At TalentWave, we help companies safely engage with the contingent workers they have sourced on their own—helping them succeed. We have rewritten the definition of the nine-to-five worker and we empower our clients to leverage their power.
Contact us today to see how you can improve your workforce tomorrow.
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