Photo by Magnet.me on Unsplash

The contingency workforce is on the rise—and that was true before a global pandemic created uncertainty for businesses in every industry. In 2015, a report by the GAO found that contingent workers made up 40 percent of the average company’s workforce. When newer data become available, experts believe that contingent workers will be comprising half of all workers in the United States.

The contingency workforce is made up of non-permanent employees, including casual employees, temporary workers, seasonal workers, independent contractors, freelancers and consultants. Leveraging them is considered one of the fastest ways to fill a talent gap.

But, pick the wrong type of contingent worker—or hire a contingent worker for something better suited for a permanent employee—and your company could be exposed to unintended risks.

Misclassifying employees as contingent workers can expose your business to government penalties and fines. Businesses that rely too heavily on contingent workers, instead of hiring and training their own permanent employees, might be spending too much on labor—and they are definitely missing out on the benefits of permanent employment, such as happier, more loyal workers with institutional knowledge.

There’s a variety of worker types lumped together in the contingency workforce, but they shouldn’t be considered interchangeable. Understand contingent worker types and the scenarios they’re best suited for to make sure you’re utilizing them appropriately with this handy infographic.

Download the Contingent Worker Guide!

Consider the facts. Download our free “Defining Contingent Worker Types” graphic.

Subscribe To Our Newsletter

Sign up for our monthly newsletter to keep up with the latest news and insights from XMI! We won't flood your inbox with junk or give away your email address.

 

Signup Source - Bloom

You have Successfully Subscribed!