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Top 5 Reasons Why Hiring Contingent Workers Benefits Businesses

Posted by Insightlink on 02/04/22

Freelancing is projected to grow to $20–$30 billion in the next 5–7 years in India, and the freelancers in the U.S. will comprise 40% (approx.) of the workforce at the present growth rate. 

Hiring temporary or contract employees has become common practice for businesses who want to Save Time and Money. However, some companies don't realize the benefits they get from using these types of workers.
Temporary employment is becoming more common in today's economy. In fact, it's estimated that nearly half of U.S. jobs are held by temporary workers. And according to the Bureau of Labor Statistics, the number of temporary workers is expected to increase by 20 percent over the next decade.
There are several reasons why employers should consider using temporary workers. For example, they can fill positions that require specialized skill sets or experience. They also offer flexibility in scheduling and reduce turnover costs.
contingent workers

Who Are Contingent Workers?

A contingent worker is someone who works for a company on a contract basis rather than having a permanent job. These workers are often hired through staffing agencies. They may work full-time or part-time, depending on the needs of the business. The term "contingent" means they are paid only when needed.

Benefits of Using Contingent Workers

If you are looking for ways to increase your business productivity, then contingent workers can be a great option. They are people who work on a contract or freelance basis. This means they have no fixed employment with any company. Instead, they are hired by one company and work for another company.
The most common type of contingent worker is the independent contractor. These are people who are self-employed and run their own businesses. They may offer services like web design, graphic design, writing, programming, marketing, consulting, etc.
Contingent workers are often hired by larger companies to provide temporary help as needed. This allows them to work when they want to, rather than being tied to a specific schedule. It also gives them more flexibility with regard to where they live and what hours they work. Contingent workers are usually paid hourly, but some are paid per project.

Advantages of Contingent Workers

Contingent workers are individuals who work for a company on a contract basis. They usually do not receive benefits such as health insurance or retirement plans. However, they may be paid per project instead of hourly, which means they can earn more money. Contingent workers also have flexibility when it comes to scheduling.
Some companies even allow them to take off during the week if they choose.
The most significant advantage of contingent workers is their ability to provide flexible schedules. According to the Bureau of Labor Statistics, about 45 percent of all jobs are currently held by temporary workers. These workers often have to juggle multiple jobs and responsibilities. That's where a flexible schedule comes into play.
In addition, many temp agencies allow their clients to use part-time workers. This gives them the opportunity to balance their workload with another job.

Disadvantages of Contingent Workforce

While the advantages of using contingent workers outweigh the disadvantages, there are still risks involved. One risk is that the worker might quit after completing one assignment. Another issue is that they might accept lower pay than what they're worth.
A third concern is that some people might view this type of arrangement as unfair because they aren't given any benefits.
However, most companies understand the value of having flexible workers. As long as they know how to manage expectations, they shouldn't have any problems. 
Hiring contingent workers is one of the most effective ways to save money and improve productivity.
Contingent workers are temporary employees who are hired on a project basis. They are usually employed through staffing agencies.
Here are five reasons why hiring contingent workers is a great idea.

1. Save money

You don't have to pay them full-time salaries when you hire contingent workers, which means you can save money.
If you're working with a staffing agency, you might be able to negotiate a lower rate per hour. You could also find a cheaper hourly rate by using a freelancing website such as

2. Improve productivity

Contingent workers can help you achieve higher levels of productivity.
They can perform tasks that require specialized knowledge or experience. For example, a graphic designer can create beautiful logos, while a web developer can design websites.
A copywriter can write copy for ads, while a sales representative can sell products.

3. Increase Flexibility

Contingent workers give you flexibility. You can quickly adjust your workforce to meet changing business demands with them.
For instance, you can call up a temp worker to pick up what you need if you run out of inventory. Or, if you need to make an urgent change to a product line, you can bring in a new employee.

4. Reduce Turnover Costs

Hiring contingent workers reduces turnover costs.
This is especially true when you use a staffing agency. When you hire a temp worker through a staffing agency, you can expect to spend less than $10,000 annually on training and onboarding expenses.

5. Get More Done Faster

Contingent workers allow you to focus on other aspects of your business. Instead of worrying about payroll, H.R. issues, and other administrative tasks, you can concentrate on running your business. In fact, you may find that you can complete more projects in a given period of time because you aren't distracted by non-productive activities.
The bottom line is that using contingent workers can benefit both businesses and individuals, and it's a win-win situation. Contingent work has become increasingly popular among freelancers and independent contractors because it allows them to choose when they want to work and how many hours per week they want to work. This flexibility allows them to balance their personal life with their professional ones.


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