Who is a contingent worker?

A contingent worker is someone – typically an expert or professional, hired by an organization for a specific task and a limited duration. As such, they are typically not entitled to benefits offered to regular employees and are not represented by the company. Depending on the agreement, contingent workers may be paid on an hourly or project basis.

Benefits for Companies and Workers in Contingent Work Arrangements

Contingent work arrangements offer benefits to both workers and employers. In some cases, these advantages can even surpass those of traditional employment. Let's explore these benefits in detail.

For Companies

• Streamlined Workforce Management: Contingent work arrangements allow employers to manage their workforce more efficiently as it lets them adapt quickly to changing business demands. It also minimizes the administrative burdens involved in employee management, for instance, the lengthy onboarding process.
• Flexible Access to Expertise: Employers hiring contingent workers can tap into a pool of specialized skills on demand. It empowers them to ensure that they have access to the right expertise when needed for specific projects or tasks.
• Eliminates Training Needs: Hiring contingent workers with existing expertise means companies can bypass extensive training. This translates to improved project timelines and reduced onboarding costs.
• Significant Compensation Savings: By hiring contingent workers, organizations can lower their compensation expenses as it requires them to pay only for the work needed and not the costs of full-time benefits.

For Workers

By opting for a contingent work arrangement rather than a fixed full-time job, the workers can:

• Work across multiple companies, diversify their experience, and gain broad industry insights. It provides them with the opportunity to explore various company cultures without a long-term commitment.
• Experience greater freedom, such as flexibility in scheduling, workload, and work-life balance. Having greater autonomy and the freedom to choose career paths according to their preferences improves long-term career fulfilment.
• Enjoy higher job satisfaction by choosing to take up projects that suit them and seem meaningful to them. It helps them leverage skills that they are more aligned with.
• Expand their networking horizons. Contingent work arrangements offer greater opportunities for workers to connect with diverse professionals, build meaningful relationships across industries, and explore better and newer job landscapes.