Contingent Employee: An Overview
The term “contingent employee” is used to describe an individual who is conditionally employed by an organization or business for a specific purpose or period of time. These types of employees are often hired on a part-time, short-term, or temporary basis to meet the needs of the organization. In recent years, the use of contingent employees has become increasingly popular, as organizations seek to minimize costs and maximize flexibility. This article provides an overview of the concept of contingent employee and its implications for organizations.
Definition
Contingent employee is a term used to describe a worker who is employed on a conditional basis, usually for a specific purpose or period of time. This type of employee is typically hired in a short-term, part-time, or temporary capacity to meet the needs of an organization. The contingent employee is not a full-time, permanent employee, and is typically not eligible for benefits or other employment-related perks.
Benefits and Challenges
The use of contingent employees can bring a number of benefits to an organization. By utilizing contingent employees, organizations can reduce labor costs and maximize flexibility. They can also fill staffing needs quickly and effectively, and can provide specialized skills or expertise when needed. Furthermore, employing contingent employees can help to minimize the commitment of resources and enable organizations to respond quickly to changing market conditions.
However, there are also a number of challenges associated with the use of contingent employees. For example, they may not have the same level of loyalty or commitment to the organization as full-time, permanent employees. Furthermore, contingent employees may not have the same level of job security, and may be less likely to stay with the organization for the long-term. Additionally, organizations must ensure that they are compliant with applicable labor and employment laws when utilizing contingent employees.
Conclusion
The use of contingent employees can be an effective way for organizations to reduce costs and maximize flexibility. However, it is important to consider the potential benefits and challenges associated with this type of employment arrangement. Organizations must ensure that they are compliant with applicable labor and employment laws, and must weigh the potential advantages and disadvantages when considering the use of contingent employees.
References
Akin, N., & Merkle, C. (2014). The Strategic Benefits of Contingent Workers. Human Resource Executive Online, 27(10), 32-35.
Burke, K. (2014). Contingent Workers: A Growing Trend. Harvard Business Review, 92(9), 58-60.
Lloyd, M. (2015). The Benefits and Challenges of Contingent Employees. Business 2 Community, Retrieved from https://www.business2community.com/hr-employment/the-benefits-and-challenges-of-contingent-employees-0878440
U.S. Department of Labor. (n.d.). Contingent Workers. Retrieved from https://www.dol.gov/agencies/whd/fact-sheets/contingent-workers