Utilization of Contingent Workforce

Running head: UTILIZATION OF CONTIGENT WORKFORCE
UTILIZATION OF CONTIGENT WORKFORCE
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1UTILIZATION OF CONTIGENT WORKFORCE
Contingent workers are the workforce, where the labors are hired on the contract basis
by an organization according to the need of the organization. The contingent workers are not
the full time workers of an organization and hence they are not involved in the company’s
payroll. The contingent workers can be a contractor, freelancer or the consultants. The
contingent workers can be hired from consultancy or staff agencies or via several others
mode of recruitment (Probst et al. 2018). The contingent workers do not get the opportunity
to avail the facilities like full time worker and ever their wages are very less as compare to
full time workers. The organizations hire contingent workers to access specialized talents,
flexibility and fresh ideas (Simms and Dean 2015). They are the part time workers hired by
the companies during peak season to minimize the work load maximize the profit. The
companies would not have to pay any employment taxes as the contingent workers are self-
employed. During peak season the companies can hire the best talents by hiring a contingent
worker with minimal facilities. However, along with these facilities the company also faces
certain risks factors regarding the information leaks, misclassification and poor management
(DuRivage 2016). The reward and recognition can minimize or eliminate the risk comes with
the contingent workers while hiring them.
The advancement of technology has completely changed the concept of working
world. The companies and workers can communicate more easily or interact with each other
even outside of the office because of the progression in technological advancement. The
progression of the technological advancement has boosted and combined a generation shift,
which ease the workers to work from any place which they want and also allows them to
choose the organization they want to work with under a given contractual time span.
However, this simply fits the lifestyle of many non-permanent workers.
The shortage of skilled workers brings the company to hire non-permanent or
contingent workers. The organization at present highly depends on the on demand workers, if
they are highly skilled and talented to boost the work process in peak seasons and helps to
grow the business on rapid scalability. The business relation cannot be complained from both
the end.
The scope of the contingent workers are goals and perspective of the deliverable of
the tasks or efforts should be made towards the organization. The contingent workers are
lucky enough to pick and choose companies they want to work for and the project they would

2UTILIZATION OF CONTIGENT WORKFORCE
like to work for is the reasons behind the workers experience the major competitive
challenges in the war of top talents.
The following paragraphs discusses about the contingent workforce in detailed
analysis regarding the gig economy of the contingent workers. It also defines the meaning of
the contingent workers and the different types of the contingent workers. Moreover it also
describes how the different types of contingent workers like freelancers, contractors and
others temporary workers get benefited. The needs and profits why the organizations hire
contingent workers to make profits has been describes thoroughly in the below paragraphs.
However, the hiring processes not only provide advantages to the employers and
organizations but the fatal risks it can arise also been described in this essay.
The gig economy signifies that the traditional economy for the full time workers who
rarely changes their position from organization to organization an d rather focus on a lifetime
career in an organization. In a gig economy it has been observed that the companies are
fonder of hiring the freelancers, contractors or temporary workers with flexible jobs position
and timings rather than hiring the full time workers (Donovan, Bradley and Shimabukuru
2016). This would rather save the cost of the organization among per employee capital. The
contingent workers can also be coined as digital workforce basically the freelancers, they are
higher by the companies to work efficient while utilizing the proper mode of communication
and also by controlling certain automation system. The freelancers who work as a software
developer or graphics designer has the potential to work from a distant place by properly
utilizing the communication commodities and technologically advanced devices.The reason
behind many of the freelancer chooses to become a contingent worker as because they have
the opportunity to choose where they want to work and when they want to work. This means
the contingent workers are remotely available to the system for coming into the office.
The contingent workers are the short term workers who are hired on the contract basis
by the organizations to boost the work process. The use of contingent workers has become
increasingly common over the past few years. The contingent workers are generally hired
during the peak seasons of the organizations. The organizations or companies hire these
workers as they are specialized in their own fields of talent. The organizations or companies
can save the effective cost of training as they are already specialized in their respective fields.
The contingent workers are deprived from the benefits of the organization which are
generally offered to permanent employees of the organization. The hiring is done as the

3UTILIZATION OF CONTIGENT WORKFORCE
companies continuously looking for the cut costs and maximizing the efficiencies to increase
the profitability over the orders. The labor cost being the most expensive and biggest
expenditure on the business the companies would always start looking for an alternative ways
to get the work done more effectively and efficiently at a lower cost, this leads to the birth of
the contingent workforce.
The temporary workers are needed for close supervision to work in an open ended
atmosphere. The contingent workers are experts in their fields and have the ability to work
efficiently with very less supervision (Doody, Chen and Goldstein 2016). There are
traditional and contract based contingent workers are available for the shorter duration of
contract. There are different types of contingent workers generally hired by the organizations
are listed below:
i) Temporary employees: Temporary employees generally work for the employment agencies
which place workers in different optimizations for shorter duration to perform short term
assignments (Selvarajan, Slattery and Stringer 2015). However, most of the temporary
employees get less wages than that of the full time workers and even though they do not
receive the necessary benefits availed by the permanent workers. The facilities changes for
certain job specialties basically for the computer and information systems based areas.
ii) Part-time employees: The part- time employees often receive fewer benefits or no benefits
from their employers (DuRivage 2016). The part-time workers work less than 35 hours in a
week. These workers are generally hired during the peak season of the organization to meet
the desire targets of the organization. The organization or employers saves cost for the
company as they are deprived from the employee’s benefits.
iii) Contract workers: Contract workers are the employee who proposes a negotiable
relationship directly with an employer for a particular piece of work for a specific time period
(Park. and Baek 2019). Their work is based on organizational tender which invites them to
bid for the project. The contract workers are generally self-employed and determine their own
working hours to complete the project for which they have been assigned for. These contract
workers can results as a productive employee for the organization than that of the in-house
employees because they avoid the terms of bureaucracy of the daily basis organization life.
iv) College interns: The college interns are the students who work for the company to gain
experience either with no salary or with fewer salary (Matteson and Hankinson 2018). They