Contingent workers work in temporarily basis. Contingent workers are also referred to as freelancers or independent professions. They are involved in multiple work and they are paid according to the work they have done. Contingent workers are very important in the economy and thus cannot be avoided.
Contingent workers have brought up by several factors. Globalization is one of them. It has brought intensive growth of industries thus demanding outsourcing of labor force. This is because the companies need to remain competitive towards market. In addition, there is also need to save cost of employing permanent workers. Contingent workers are used when the company would like to respond to different changes (Zeidner pg32). Especially when work requires a certain kind of experts, temporary workers are very vital. Contingent workers help to counter these changes.
The cost of retirement to the organization sometimes is too high especially when the number is high. To reduce this, the employer may decide to hire contingent workers. It is cost effective to have contingent labor as adjustment in employment level can be done without any problem. The employment cost can also be adjusted depending with the kind of the expert brought on board.
Economy is another cause for contingent work force. Due to global economic crisis and high demand for skilled labor, companies prefer contractual labor force. This will cut the cost of long term hiring of the employees.
The labor turn over is very high in the companies. This has increased the demand for contingent workers to sustain the productivity. Jobs application has become so popular especially on-line job. This makes employee movement from one job to another very high in such of greener pasture. Thus, the employers must out source labor from elsewhere to make the business run.
Due to technological change, contingent workers are not to avoid. The tools and equipment required for working come with very high technology requiring highly skilled personnel (October pg 20). Such people have great knowledge and lender their services at a considerable price, making the employer get more attracted to them.
According to Zeidnerpg pg 22, contingent workers have several advantages. They are always flexible in the kind of work and the quantity of resources of labor they under take. This makes them more resourceful in the companies and very reliable. In place where benefits of permanent workers are very high, the company cuts this cost by employing the contingent workers. This helps the company to work at minimum cost. Contingent workers are experts in different fields. They are highly skilled thus making the company accesses their service immediately when needed. Once a company employs somebody, it engages itself to a long time compensation cost. To cut such cost, the contingent workers are employed (DCoy pg16)
Nevertheless, they still have some disadvantages. Very few are royal to their employer. This makes the company lack consistency in its productivity pattern. Working in temporary basis, they might be the cause of disturbance of the morale of the organization and its culture. They are also very expensive in terms of training cost. The company incurs extra cost trying to sensitize them on the working values and norms of the company.