Contingent Staff

Posted in Human Resource Terms, Total Reads: 972
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Definition: Contingent Staff

Contingent Staff is a group of contingent workers who usually work under a contract for a fixed period of time or for a specific project. They are paid according to number of hours worked and they don’t get any benefits and allowances that permanent employees get.

 

They are also known as freelancers, or temporary contract workers.

 

Contingent Staff works in casual employment and working arrangements are less formal for them.

They are popular in industries with fluctuating demands.

 

CLASSIFICATION:

  • Temporary Agency Worker
  • Seasonal Worker
  • Freelancer

 

Advantages:

  • Costs saving in terms of benefits given to permanent employees
  • Can have an immediate access for the specialized skill not present in the organization
  • Flexibility in number of resources as per the requirement
  • Flexibility in type of resources as per the requirement
  • Savings in long term compensation

Disadvantages:

  • Fitting the new employees in the organization culture can be difficult
  • Employee loyalty will be lesser
  • Training costs will be higher
  • High turnover rate
  • Employer lacks control over the contingent worker, company has only monetary control over him/her

 

Example:

A salesperson can be an example of contingent worker where the company has hired him in peak loads of sales. The company focuses on results and not on the methodology adopted by the salesperson.

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