Contingent Work – January Newsletter
We are so excited to release our first newsletter of the new year! Starting the new year off right we hope you are able to take some time and click here to check it out!
This weeks blog post comes from an article printed in our newsletter.
The New World of the Contingent Worker
What is a contingent worker? In it’s simplest form a contingent worker works for an organization on a non-permanent basis. Many contingent workers fall under multiple titles and can also be known as freelancers, independent professionals, temporary contract workers, independent contractors or consultants.
For many companies this new work force is becoming consistently more important then ever. Dana Shaw, former senior vice-president for Staffing Industry Analysts, reported in a National Post article in 2011 that in the Fortune 100 companies, contingent workers make up 20% to 30% of the workforce, but predicted that it would soon rise to 50%. And now in many fields we are seeing contingent workers side by side with salaried employees on the same projects with the same goals.
The rise in the use of contingent workers comes from the initial fall and further changes in the economy. These changes have pushed many employers to explorer the larger variety of employment options. And the increased use of contingent workers has become a worldwide trend. Many employers are moving towards more of a supply chain model of ‘just in time’ workers in order to stay competitive. Companies in the United Kingdom for example have historically given their employees stable income and high levels of job protection. But the financial crisis has caused a rise in ‘zero-hour contracts’ where the employer has the discretion to vary working hours and employees are effectively ‘on call’.
Benefits of contingent workers to employers are obvious, the largest being their flexibility. They can do many types of labour and save employers in benefits and taxes as well as long term compensation. Many may also to able to bring in an expertise not already available in the company. Disadvantages of using contingent workers can be training costs and lack of loyalty, however working with staffing solutions companies can help elevate these issues.
Some of the increase seen in the contingent workforce is due to specific sectors actively choosing it. Older workers and retirees are choosing to supplement their incomes through part time and consulting work. While many Millennials are looking to contingent work to give them more freedom and independence in their work. Others still are pursing contingent for its possibility of flexible arrangements and better work life balance. Many of these are assisted by the power of technology and the new ability to have a virtual workforce.
So, how is your company using contingent workers? Do you now see a new way you could possibly be using contingent workers to increase profits? Take some time and think through if contingent workers could help your company grow.
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