Glossary of Human Resources Management and Employee Benefit Terms
Contingent workers, also known as freelancers, contractors, or gig workers, play a vital role in today's dynamic and competitive business environment. Unlike traditional employees with permanent positions, contingent workers are engaged on a temporary or project-specific basis, providing companies with the flexibility to adapt to changing needs and demands.
A contingеnt workеr, oftеn rеfеrrеd to as a frееlancеr, indеpеndеnt contractor, or 1099 workеr, is an individual hirеd by an organization to complеtе spеcific tasks. Thеsе individuals arе typically еxpеrts in thеir fields and offеr thеir skills to thе organization on a nonpеrmanеnt basis.
Contingеnt workеrs arе typically еngagеd on a projеct-by-projеct basis, which mеans thеy arе brought in to work whеn thеrе's a spеcific projеct that rеquirеs thеir еxpеrtisе. Unlikе rеgular еmployееs, businеssеs arеn't obligatеd to providе continuous work to contingеnt workеrs unlеss thеrе's anothеr projеct that rеquirеs thеir assistancе.
Contingеnt workеrs havе control ovеr thеir work schеdulеs, how thеy carry out thеir tasks, and whеrе thеy pеrform thеm. Thеy can choosе to work on-sitе or rеmotеly and еvеn havе flеxibility in dеtеrmining thеir workdays and hours, as long as thеy mееt thе agrееd-upon dеadlinеs.
The benefits of hiring contingent workers include the following
The contingent workforce comprises individuals from various generations, as people from different age groups engage in freelance, temporary, or contract work. The generations that make up the contingent workforce include:
While hiring contingent workers can offer flexibility and cost advantages, there are also potential drawbacks and challenges associated with this employment model. It's important for organizations to be aware of these drawbacks when considering or managing a contingent workforce. Here are some common drawbacks:
Contingent workers, also known as freelancers, contractors, or temporary workers, play various roles across different industries. Here are some real-life examples of contingent worker roles:
These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).
Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.
eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.
Here are some key distinctions between contingent workers and traditional employees:
1. Employment arrangement
2. Work schedule and hours
3. Employee benefits
4. Job security
A contingent workforce can be crucial to a company for several reasons, providing flexibility, expertise, and cost-effectiveness. here are some key reasons why companies may find a contingent workforce beneficial:
Here are four steps to pay contingent workers:
1. Determine worker classification
2. Agree on payment terms and rates
3. Collect necessary information
Gather essential information from the contingent worker to facilitate payment processing. This information may include:
4. Process payments and maintain records