What Is a Contingent Workforce: Importance and Examples?

Working with a large team, one that is still inefficient when it comes to tackling a particularly difficult problem, and trying to complete the task in a specified duration can be a big problem. This got businesses thinking and the solution was to hire a contingent workforce. And there soon came into the picture, companies offering contingent workforce services. Let us now look at what we mean by a contingent worker and a contingent workforce.

Who Is a Contingent Worker?

A contingent worker is a non-salaried, non-permanent worker who provides services to a company as per the terms of an agreed contract. A contingent worker could be a temporary worker, someone working freelance, a seasonal hire or a labor service person. A contingent worker is always hired on a project basis or for a particular duration of time.

Importance of a Contingent Workforce

1. Reduced Overhead Costs

A contingent workforce is a mix of contract or temporary workers hired for a duration or on a project basis and therefore can help lower costs. This is because they need not be offered the benefits of a full-time worker or be paid beyond the project duration and other responsibilities be assigned, when their services are no longer needed.

2. Saves a Lot of Time

There is flexibility in the hiring process and recruiters can save a lot of their time, hiring only when there is a need. And by going back to a talent database, they can find just the right candidates for the role, even from passive candidates. This can save a lot of HR resources too, in terms of manpower and infrastructure.

3. Recruiters are Happy and Less Stressed Out

When you hire for a need rather than anticipating the possibility for a need, you can be assured that the recruiters are less stressed out. You have a fixed role you are hiring for, and the responsibilities of the role cannot change over a specified time or project. They have a clear description and idea of what to look for in the ideal candidate and how to hire them as soon as possible.

4. Efficiency of Hiring Contracted Employees

Contingent workers can be hired easily as they are generally always working on contract and not working full-time anywhere. If you have worked with the contractors previously, it is also a lot easier to execute the contract as you know what they will be ready to accept when it comes to the role.

5. Adaptability to Work Demands

A contingent worker will generally be more flexible and able to adapt to changes a lot faster than a full-time employee as their scope of work in every project would be different and they would be facing different challenges. Our contingent workforce services will help you hire the best contingent workers without much difficulty.

Examples of Contingent Workers

1. Independent Contractors – People who work on a fixed contract and are available only at certain times during the day or for a certain period.
2. Consultants – Experienced people who offer only consulting services and typically available on call or otherwise when people involved have a doubt.
3. Specialists – They are usually hired to satisfy a specific need/role in a project and usually it is a niche one.
4. Temporary Hires – Temporary hires work only for a specific period and not necessarily on a fixed or assured contract and will be paid periodically and not just on completion of a project.
5. Seasonal Workers – Work during a season and not available otherwise or the opportunity to work does not exist otherwise.

Are You Looking for a Contingent Hiring Partner?

A contingent hiring partner can help you find the right contingent workers for your business. Contingent workforce planning requires a deft hand and head. Alp Consulting has over a decade of experience in staffing and recruitment and can help manage your contingent workforce. Talk to us today, and whether you are starting your journey of building a contingent workforce or are looking to optimize an existing one, we can help you.

FAQs

What is the purpose of a contingent workforce?

A contingent workforce gives a business access to part-time or contract workers who will take on specialized roles in a project, ensuring its successful completion and they would be paid only on completion of the project. Contingent workforce planning is today undertaken by most recruitment and staffing companies. This gives the business freedom and flexibility.

How is a contingent worker different from a full-time employee?

A contingent worker is different from a full-time employee because a contingent worker is paid only on successful completion of a project, beyond which their services are no longer required. A regular full-time employee is paid every payroll cycle, and they are on the payroll of the company they work for enjoying benefits provided by the company too.

What is the future of the contingent workforce?

The contingent workforce has grown across the world since the pandemic in most businesses and there are signs that it will continue to grow in the future too. With the emergence of AI and even more specialized roles, there is a possibility that the contingent workforce will include more and more AI roles in the future.

What is the salary of a contingent worker?

The salary of a contingent worker will depend on the kind of job they are doing, the accountability they have and the impact the job has on society. A contingent worker doing software development may be paid about five times or more as compared to contingent labor service.

How soon can you find a contingent worker?

The time required to find a contingent worker depends on the skills the role demands, the time constraints for the role and even on the salary offered for the role. Typically, a contingent workforce management company discusses these things with the employer before the search begins.