What is a Contingent Workforce?
‘Contingent workforce’ is a broad umbrella term often used to describe a labor pool made up of people in various employment categories who may be engaged by companies for a fixed period, type of work, or set project only. Modern businesses increasingly have both a contingent workforce and permanent staff on indefinite contracts, and experience the advantages and disadvantages of both models.
A contingent workforce is a labor pool whose members are hired by an organization on an on-demand basis. A contingent workforce consists of freelancers, independent contractors and consultants who are not on the company’s payroll because they are not employees of the organization. Organizations can hire a contingent worker directly or from a staffing agency.
What is contingent workforce management (CWM)?
When it comes to talent acquisition and management, there’s no doubt that the word ‘contingent’ has become a synonymous workforce term. Never before have we experienced the level of flexibility in work that we’re facing now. The gig economy and the use of contingent workers have grown exponentially in recent years — a trend which has certainly been accelerated by the global pandemic. In line with this evolution, the need for an efficient contingent workforce management (CWM) program has become more critical than ever before for all organisations.