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What are the risks, benefits for contingent employment?

Автор: kreddy22, 26 Ноябрь 2018 · 33 просмотров

contingent workers contingent employment

Many employers use contingent employment, contingent workers, independent contractors, leased employees, consultants, and temporary employees. While using an alternative workforce has benefits, it can create legal and practical risks as well. If you use or are considering using contingent workers, here are some benefits and risks to weigh.


Benefits of contingent workers -


There are many potential benefits to using contingent workers. Although the specific benefits vary from case to case, some of the more common benefits include:


Cost savings - Perhaps the most significant motivation for using workers such as independent contractors and temps is cost savings. You often must pay employees for nonproductive time, but you don’t usually pay contingent workers for downtime (e.g., you cut back on temps during periods of low production). Additionally, you generally don’t provide workers such as independent contractors and temps with the benefits you provide to regular employees, such as vacation time, holiday pay, sick leave, and health insurance.


Increased efficiency - You can increase efficiency by using contingent workers to staff peak hours, days, or periods of demand or for one-time projects. During periods of lower demand, you can stop using them.


Better job security - Contingent workers often serve as a buffer that allows stable employment for the “core” workforce. Because workers such as independent contractors and temps allow you to use labor fluidly and adapt strategies for expanding and reducing hours with minimal effect on the employment of the core workforce, regular employees may feel an increased sense of job security.


Recruiting opportunities - Contingent workers often provide a valuable base of workers from which to recruit for regular jobs. They also provide you with an opportunity to evaluate their performance on the job.


Broad talent pool - Contingent workers may offer a broad talent pool from which to select, particularly during special projects of limited duration. For example, you may be able to secure an independent contractor with more skill and talent than you would be able to afford on a long-term, full-time basis.


Flexibility - Contingent workers allow you greater flexibility in maintaining and adjusting staffing levels. You can readily increase staffing when your labor needs are high and decrease staffing with minimal legal risks and economic consequences when your labor needs are low.

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