Contingent Workforce

A contingent workforce is a provisional group of workers who work for an organization on a non-permanent basis, also known as freelancers, independent professionals, temporary contract workers, independent contractors or consultants. Contingent Workforce Management (CWM) is the strategic approach to managing an organization's contingent workforce in a way that it reduces the company's cost in the management of contingent employees and mitigates the company's risk in employing them.

Persistence Of Contingent Workforce
Knowing that contingent worker may not be entitled for retirement and other benefits, the trend in the workforce points that these group are on the rise. why?

a) Increased flexibility : it is easier for them (employers) to increase of decrease the size of the workforce than by hiring and firing permanent employees.

b) Reduced Managerial Responsibilities : when orgaizations hire a contingent worker, the load of managerial responsibility is transfered to these hires because the expected to  arrive with solutions and not challanges.

c) Decreased costs: it offers the contracting organizations sample opportunity to save costs. The organization need not think about retirement and other benefits that should have paid supposed the free agent were permanent staff.

d) Prompt Response: with respect to skill flexibility, organizations respond faster to market demands by temporally contracting skilled people than by retaining current staff in the new skills.