Contingent workers represent a growing workforce trend that is slowly taking over nearly all industries. These workers are generally defined as individuals who aren’t employed full-time, often work remotely, and don’t have a fixed role. Whether they’re recruited through online platforms or staffing firms, contingent workers are thought to be a great solution for reducing expenses, increasing flexibility, and improving profitability. With that in mind, here is a deeper look into contingent workers, as well as ways of managing and engaging this type of talent:
What is contingent work?
A contingent worker is any person who works for a company but is not officially hired by them as a regular employee. These individuals can be recruited once for a certain period of time, or even on a more frequent basis according to projects and evolving business needs. Contingent workers can provide their services temporarily, permanently, or based on requirements.
Unlike permanent employees, who often take on continuous roles, contingent workers are frequently hired to complete specific projects. The most common types of contingent workers include freelancers, independent contractors, and expert consultants.
Contingent work is quite popular among today’s labor force, likely due to the flexibility and higher pay opportunities it provides. This type of work also allows individuals to select their own jobs and choose projects based on their interests, making for a more fulfilling career as well.
How to engage contingent workers
When it comes to all talent, whether it’s contingent or permanent, one of the most important aspects to consider is the fit between your company culture and the prospect. When cooperation doesn’t exist and clear expectations can’t be established from day one, it will be quite challenging to achieve harmony between contingent workers and your permanent staff. You should prioritize synergy, as this leads to positive interactions, effective teamwork, creativity, and innovation.
You might want to consider implementing certain engagement projects such as extending awards and recognition to both permanent and contingent workers and establishing a mentorship program for the entire staff, including contingent labor. Collaborating with a contingent labor provider that offers enticing benefits to contingent workers can be of great help as well.
Managing a contingent workforce
While contingent workers can provide a number of benefits to companies, they can also come with some challenges, mainly the difficulty of effective management. Developing a systemized approach to talent acquisition, doing extensive background research before hiring a contingent worker, and incorporating an integration and participation program can be quite helpful throughout this process.
However, the biggest challenge is often compliance. Employing contingent staff comes with a different set of rules and regulations that often vary between regions, making it especially difficult when engaging international workers. To streamline this process, hiring expert contingent workforce management services might be the best course of action. Along with helping you attract and retain top talent, experienced professionals will also aid in managing your contingent workforce compliantly and efficiently.
Advantages of hiring contingent workers
Although not a new concept, contingent workers are rising in popularity across industries, and for good reason. They have various strategic and financial advantages, the most common ones being quick and easy access to highly specialized skills and increased flexibility in meeting evolving business goals and staffing needs.
But the financial benefits might be even more attractive to employers. When hiring skilled and knowledgeable talent, fewer resources have to be spent on training and development, and the onboarding process might be smoother as well. With the agreed-upon fee, there’s no requirement to pay overtime or additional benefits. Depending on your area of operation, you might not even be obligated to pay employment taxes. Outside labor may also provide you with a fresh perspective, giving you unique insight into new growth opportunities.
Disadvantages of hiring contingent workers
Regardless of their advantages, contingent workers might also come with certain challenges. Since these workers aren’t your permanent employees, you won’t have the same level of control over them. You can and should provide detailed expectations to contingent workers or monitor their procedures closely, but you won’t have the authority to interject and overrule in the same way you would with regular employees.
Building a strong team and company culture will also be difficult without permanent employees, although this factor can be mitigated by supporting cohesion through engagement tactics. Trust and good professional relationships may be challenging to build as well. For many companies, the solution to this issue is simply to rehire the same contingent talent pool as needed.
In conclusion
As work environments and business needs continue to evolve, contingent workers become a prominent part of the global workforce. While it doesn’t come without its disadvantages, hiring contingent workers is still a popular solution among companies due to the financial and strategic benefits that often outweigh the challenges.
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