“A strong economy begins with a strong, well-educated workforce.” – Bill Owens
While this statement certainly hits home, labour is also one of the biggest expenses for businesses and covers about 70% of total operational costs. Therefore, companies venture into innovative ways to recruit personnel at lower costs without compromising on their efficiency.
And, opting for a contingent workforce plays out perfectly for these organisations. After all, there’s solid reason why 62% of Australian leaders are expected to include more contingent staff in the future.
This blog will answer three key questions for you: Who is a contingent worker? What are the types of contingent workers? And how can they benefit your organisation?
Who is a contingent worker?
A contingent worker is an individual who works in a company on a temporary basis. These workers are hired on an ad-hoc basis and do not have a specific contract defining long-term employment status with a company. Contingent workers, therefore, form a labour pool that consists of anyone who is not a full-time employee of an organisation.
What are the types of contingent workers?
The contingent workforce encompasses various types of contingent workers. Below are two of the common types in the market:
- Contract workers
These are the employees who enter into a contractual agreement with an organisation and provide required services. Contract workers are self-employed, and therefore, enjoy the liberty to determine their work hours. - Freelancers
A buzzword in the present age and time, freelancers also fit under the broad term of “self-employed”. These individuals often work on several jobs for multiple clients at a time and earn on a per-job basis.
How can contingent workers benefit your organisation?
According to the Australian Bureau of Statistics, casual employment in Australia increased from 15% of the workforce in 1984 to 25% in 2016.
Companies choose this less traditional work arrangement for several reasons. Three of the key benefits of contingent workers are discussed below.
- Cost-effective for organisations
First and foremost, incorporating a contingent workforce makes perfect financial sense for companies. When you hire any contingent worker, it implies that you pay him/her for a specified timeframe only.
Another financial upside is that it amplifies cost reduction as companies need not offer additional benefits to these personnel in the form of insurance, pension contributions or paid leaves. - Flexible staffing
Today, every company should be well-equipped with agility to respond to changing circumstances. The diverse types of contingent workers fit perfectly in this scenario pertaining to their short-term nature. As a result, contingent staffing effectively eliminates the generic long-term and inflexible agreements. - Access to expertise and untapped talent
A persistent problem with a permanent workforce is that it often fails to possess expertise in all areas. Contingent workers are known to possess mastery in their specific skill set. Contracting these types of contingent workers stands out as an ideal way to fill a skill gap within your organisation.
How we can help?
The corporate world is a robust and competitive space. This means companies need to adopt agile means of utilising human resources. However, the process of hiring contingent workers can often be time consuming.
Easy Authoring can make hiring a contingent worker easy. We work to understand your specific needs, and we’ll tap into our network of consultants to locate the perfect contingent worker with the best fit.
