Most companies in the recent past work with diverse kinds of temporary personnel and have led to developing a contingent workforce. It entails a labor pool where people are hired by a firm for a fixed time or on-demand basis and often on a contract basis (Horne, Williamson, & Herman, 2018). It includes such people as consultants, freelancers, and independent contractors. The individuals are not on the organization's payroll since they are not full-time workers of the company. A company might employ contingent personnel directly or from a staffing organization. The following are some of the pros and cons of a contingent workforce: maximizing its potential and when they are a necessity.
Pros and Cons
A contingent workforce acts as a cost-cutting strategy for an organization. Companies that hire contingent staff benefit from low operating costs since they will not offer any overtime, vacation pay, or any other benefit that full-time employees enjoy (Koppel & Kolencik, 2018). Additionally, flexibility is an added merit of the contingent personnel. Firms tend to hire these workers on an on-demand or ad-hoc basis and then dismiss their service once the jobs are done. A contingent workforce will also offer the desired expertise and counterbalances any skills gap in the firm. The workforce tends to provide enterprises with a considerable pool of proficient candidates with the desired skills and abilities to accomplish a project proficiently.
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The demerits of the contingent workforce are that it is difficult to find one who can execute the required task and acclimate to its corporate culture. Organizations are habitually skeptical of disclosing information to non-permanent staff members. Subsequently, a company might face defiance and legal concerns due to employee misclassification. Firms risk paying hefty penalties and fines if they classify an employee as a contingent worker. Companies should always be conscious of their industry's protocols concerning contingent workers formerly developing a hiring strategy.
Maximizing the Potential of Contingent Workforce
Due to employment changes, top management is usually advisable to always maximize the contingent workforce's potential. Many firms rely on contingency strategies that assist in cutting down costs. However, one of the best means of maximizing a contingent workforce's potential is by making advanced upgrades in technology and management. Effective technology will help to save the time used by the contingent workforce and achieving the set results accurately. A firm's management will create a detailed plan that brings all the stakeholders on board by reshaping and reorganizing(Chand & Rath, 2018). Holding training sessions and creating awareness of the task at hand will help contingent workers familiarize themselves and understand what is required of them. Once acquired the knowledge, the workforce can face and handle the task proficiently.
The Sense in Contingent Workforce
A contingent workforce makes much sense when a company requires outsourcing the desired expertise lacking in the organization. Filling the skills gap is essential to an organization in the effort of avoiding undesirable outcomes. Facing a trial to bond skills gaps in the workplace, many managers turn to the contingent workforce to obtain top aptitude (Christie & Gigliotti, 2017). However, it is irrelevant for an organization to tap into contingency plans when they already have the workforce and the required resources to perform challenging tasks. In cases where confidential information disclosed to a contingent workforce might damage the organization's reputation, it is necessary not to obtain the services of the non-permanent employees. For example, an organization requires a contingency workforce when installing the latest technology, which no employee has come across to avoid the entire technological system collapse.
References
Chand, B. D. V., & Rath, J. (2018). A Seismic Shift in the Leverage of'Extended Workforce'to Navigate Growth Driven Competitive Success of Indian Inc: Impact on HR. IPE Journal of Management , 8 (1), 57-64. https://www.ipeindia.org/wp-content/uploads/journals/ijm/IPE%20JoM%20 (Vol%208,%20No%201,%20Jan-Jun%202018)%20-%20FINAL.pdf#page=61
Christie, E., & Gigliotti, R. A. (2017). Contingent labor. The International Encyclopedia of Organizational Communication , 1-9. https://doi.org/10.1002/9781118955567.wbieoc042
Horne, M. S., Williamson Jr, T. S., & Herman, A. (2018). The contingent workforce: Business and legal strategies . Law Journal Press. https://books.google.com/books?hl=en&lr=&id=sck9EltFin0C&oi=fnd&pg=PR3&dq=Horne,+M.+S.,+Williamson+Jr,+T.+S.,+%26+Herman,+A.+(2018).+The+contingent+workforce:+Business+and+legal+strategies.+Law+Journal+Press.&ots=cBWpSHS1w3&sig=xSEL-NpJ6ZvGqvWIzZKbgzgqN8o
Koppel, J., & Kolencik, J. (2018). The future of workers: Contingent forms of labor contracting in the platform economy. Psychosociological Issues in Human Resource Management , 6 (1), 172-177. https://doi.org/10.22381/pihrm6120189
