Evolving Uses of Contingent Workers | DCR Workforce Blog

Evolving Uses of Contingent Workers

The economy is looking up. Payrolls and hours worked are expected to see a rise even as unemployment insurance claims decline. The utilization of contingent workers is bound to increase and s acknowledged as one of the leading indicators of an economy on the rebound. Even in the face of sequestration-related job cuts and the higher burden of health benefits under the Patient Protection and Affordable Care Act; we are seeing a decline in job terminations and clear growth in construction, manufacturing and energy sectors.

Why Hire Contract Workers?

As increasing workloads put pressure on employers and employees alike, head count increases will prove more the norm than exception. Contract staffing offers an ideal route to source qualified candidates, while maintaining flexibility and keeping costs down.

Temps today are not just meant for seasonal spikes in requirements or filling temporary vacancies due to emergencies and medical-related absences.  Some reasons why employers hire contract workers:

  1. The employer can avoid making long-term commitments in an uncertain economy, without compromising on the help they require to stay completely productive.
  2. They can meet deadlines on projects by sourcing the skills and talent needed to deliver on them. In many cases, particular skills are only needed for a specific project.  By using a contract worker, employers avoid hiring individuals who will not have a long-term role in the company.
  3. Using temp-to-hire arrangements, candidates can be evaluated for their skills and abilities before being offered permanent employment.. They can also be vetted for behavioural fit with organization’s culture.

The intermediation of staffing agencies has brought a semblance of stability to the careers of temporary workers; many of whom prefer this way of life to being committed to a permanent job. Most staffing agencies offer worker benefit programs, and attempt to reassign the worker at the end of each engagement.

Let us take a look at the pros and cons of taking up a temporary job, from the temp’s point of view, in our next post.


Disclaimer:
The content on this blog is for informational purposes only and cannot be construed as specific legal advice or as a substitute for competent legal advice. They reflect the opinions of DCR Workforce and may not reflect the opinions of any individual attorney. Do contact an attorney for advice specific to your issue or problem.
Lalita is a people/project manager with extensive experience in operations, HCM and training and development across industries like banking, education, business consulting, BPO and information technology. She believes in a dynamic approach to life and learning as change is the only constant.