What is a contingent workforce?

Certain organizations also choose to hire contingent workforces instead of full-time employees because this can be a more efficient and cost-effective staffing strategy. This type of workforce also has the benefit of being more flexible for the specific needs of an organization.

Contingent workforces are used for several different reasons, some common reasons include:

• To fill a short-term staffing need

• To provide specialized skills or expertise to a project an organization is doing

• As seasonal employees for a busy period

Contingent workers sometimes work for one sole employer at a time, while others might work for several different employers at the same time. This depends on the specific contracts and employment agreements the contingent workers have with their clients.

Companies that use contingent workforces often don't have to provide employee benefits to their contingent workers, such as health insurance or retirement plans; contingent workers are also usually responsible for their own taxes. For these reasons and others some companies find this staffing strategy a cost-effective and flexible approach.

While contingent workforces have experienced massive growth in popularity in recent years due to the demand for specialized skills and expertise, as well as because of the rise of the gig economy, there have been some concerns with this staffing strategy due to legal and ethical issues that are related to worker classification, workplace safety, and labor laws.