What is it?
A contingent worker is an employee who is not part of an organisation’s permanent workforce. These workers are typically employed on a temporary, contract, or freelance basis, often to meet short-term business needs or handle specific projects. Contingent workers include freelancers, consultants, temporary staff, independent contractors, and gig workers. Unlike full-time employees, they are usually not entitled to the same benefits, such as healthcare, retirement plans, or paid leave.
Why is it important?
- Flexibility and Agility: Contingent workers provide organisations with the flexibility to scale up or down based on current business needs without the long-term commitment of hiring full-time employees.
- Cost Savings: Employing contingent workers can reduce labour costs, as companies are not responsible for providing benefits such as healthcare, paid time off, or retirement contributions, which are typically offered to permanent employees.
- Access to Specialised Skills: Contingent workers often have specialised skills or expertise that organisations may need for short-term projects or specific tasks. Hiring them allows companies to access talent without needing to invest in long-term employment.
- Faster Hiring Process: Since contingent workers are typically brought in for short-term or project-based roles, the hiring process is often faster and less complicated than traditional hiring.
- Risk Management: Organisations can use contingent workers to manage risk, particularly during times of economic uncertainty or fluctuating demand, by adjusting workforce levels as needed without making permanent staffing changes.
