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The contingent workforce is a large and growing segment of the overall U.S. workforce.
These non-permanent employees help employers to meet their work demands.
Employers are turning to contingent workers as the economy slows and hiring traditional workers becomes more of a hardship. Many of today’s workers enjoy the flexibility and independence of contingent employment, preferring it to permanent employment.
Staffing agencies or “temp agencies” do big business placing temporary or “leased” workers throughout the U.S. In fact, one of the world’s largest staffing agencies employs over 33,000 clients. Almost five million people work for the company as associates (their services are available for leasing).
The Bureau of Labor and Statistics (BLS) places contingent workers in its “nontraditional workforce” category. According to the BLS, “… nearly four out of five employers, in establishments of all sizes and industries, use some form of nontraditional staffing.”
Although using a contingent workforce offers employers advantages in flexibility, just-in-time project staffing, and employment cost savings, it can also expose employers to significant risks. To minimize your liability, make sure you understand the rules and regulations covering temporary employees and the distinctions between traditional employees, common-law employees, and contingent workers.
Best practices for employing contingent workers include: