Is Contingent Workforce the Answer? Some Businesses Think So

With the fear of commitment to full-time employment, many companies are avoiding hiring in general which can negatively affect many areas from inner company efficiency to national unemployment. Fortunately, companies are finding temporary employment to be a positive solution.

To survive the recession, employers have been forced to maintain a flexible and creative workforce with variable expenses. Employing contingent workers can be beneficial and less-costly additions.

Small businesses can benefit from temporary labor through staffing agencies just as large businesses do. In fact, they are raising the non-salaried labor demand significantly, increasing the number of people employed. Recent studies show claims for temporary and contract workers will only increase in the coming years.

Demands for September through October continued to rise 3.62% from 77 to 83 according to the American Staffing Association monthly report.

Contingent workers also referred to as temporary, part-time, flex workers or independent contractors are expected to make up half of 2010’s added labor and twenty-five to thirty percent of the total workforce.

On the other hand, some companies are not being careful enough when hiring these workers. When dealing with the transition between full time employees and part-time personnel, some employers do not take into consideration the legal responsibility they still hold. Insurance and other benefits that some employers assume do not apply to contingent workers actually do, causing lawsuits as well as boycotts and strikes. In turn costing the company, more then they had bargained for.

Suggested fields to look into:

To contrast the ever-rising unemployment rates, experts predict that by the year 2016, an estimated eighteen percent increase in employment rates will occur, particularly in the accounting and auditor fields.

Another seemingly important fiend to watch out for is information and computer technology divisions as the employment rates within this sector are though to reach about sixteen percent increase versus a ten percent increase in all other positions, again by 2016.

Also, a potential increase of about twenty percent in meeting and convention planners is expected, as more and more companies will be expanding internationally, increasing the need for face-to-face events will occur.

As to be expected, an increase of about sixteen percent within the healthcare area is thought to occur by 2010.

Finally, Jobs within HR departments are predicted  to rise to about seventeen percent by 2016 due to the increased need for labor relations, training and compensation.

To avoid this, it is important to address these concerns as well as your budget, before employing part-time workers.