“Contingent Worker”

What is a Contingent Worker?

A contingent worker is an individual who provides services to a company on a temporary or contracted basis, as opposed to an employee who is employed by an organization on an ongoing basis. Contingent workers may include contractors, freelancers, temps, independent contractors, consultants, gig workers, and those working through third-party agencies. As a non-traditional form of employment, contingent work offers organizations the ability to flexibly boost their workforce when necessary.

Why Do Some Workers Choose to Be Contingent Workers?

For some individuals, contingent work offers the flexibility to choose projects and take on jobs that they find interesting and rewarding. Working as a contingent worker allows an individual to gain experience from a diverse range of clients, while maintaining the flexibility of being able to move on when a job ends.

What Are the Benefits of Hiring Contingent Workers?

Organizations can take advantage of the flexible nature of contingent work, allowing them to staff up or down as needed, while avoiding the costs associated with traditional employees. Hiring contingent workers can also reduce overhead costs by eliminating the need for benefits such as paid vacation days and health insurance. Additionally, organizations are able to access specialized talent that may not be available through traditional employees.

FAQs

Can Any Worker Be Classified as a Contingent Worker?

Yes. Any individual who is hired on a contract or freelance basis could be considered a contingent worker. However, not all contingent workers are the same – it is important to define the role and obligations of the individual prior to beginning work.