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Valuing Contingent Workers

Valuing Contingent Workers

Sheila A. Mace
Ivy Tech Community College

Author Note
Sheila A. Mace, Student at Ivy Tech Community College
This research is for writing assignment in Introduction to Business BUSN101
Correspondence concerning this article may be addressed to Sheila A. Mace
Contact: smace6@ivytech.edu

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Valuing Contingent Workers

Abstract
This essay is about an article titled Contingent Workers: Why Companies Must Make Them
Feel Valued from Workforce Management. I will be reviewing this article to help readers
understand the contingency workforce in our current times in connection to my reading material
for class Understanding Business. This paper will hopefully show you what a contingent worker
is and why they are important.

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Valuing Contingent Workers

Valuing Contingent Workers

The definition of Contingent Workers vary depending on what source you are reading but
are usually similar in meaning. In the article, Contingent Workers: Why Companies Must Make
Them Feel Valued it states that most observers agree the term at the very least encompasses
temporary agency workers and independent contractors. (pg. 2). In the Understanding Business
textbook the definition states a more to-the-point meaning Employees that include part-time
workers, temporary workers, seasonal workers, independent contractors, interns, and co-op
students (Pg. 302). In todays world one of the biggest groups of contingent workers are college
students. They benefit from being able to work temporarily, in cities where their schools are
located, making it possible to support themselves financially. Companies are eager to hire
college kids because of their computer skills and the ability to use popular up-to-date software.
The group of contingent workers however increasing in numbers are the educated professionals
such as accountants, attorneys, engineers, graphic artists and nurses.
According to Workforce Management after a survey of almost 1200 readers, 43% stated
the main concern about hiring contingent workers was Quality of work. For the past several
years companies usually had hired contingent workers because of cost-cutting and legal
compliance. If companies hope to find and hire contingents a new relationship with them is
going to be needed. Ed Frauenheim calls that new relationship an arms-length embrace
meaning businesses need to respect contingents independence but at the time show them more
lovethrough invitations to social gatherings, improved communications, recognition and an
approach to pay that includes a fair wage rather than a nickel-and-dime approach to free agents.
(Pg. 2 Para. 2). The Workforce survey also discovered that 30% of companies had either an
already designed plan to become the choice of employment for contingents or at least was

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Valuing Contingent Workers

working on one. Analyst Brian Kropp from the firm of the Corporate Executive Board argues
that smart firms will take their relationship with contingents more serious if they want to
improve organizational agility, customer service and productivity. (pg. 2, Para. 3).
In our textbook it states that the Bureau of Labor Statistics estimates there are
approximately 5.7 million contingent workers in the United States (Pg. 303) and according to
Workforce Management, research firm Aberdeen Group estimates that nearly 26%of the average
total workforce is contingent or contract-based. The use of contingent labor has jumped by more
than 12% at the time of this article. (Pg. 3, Para.1). Even though the need or want for contingent
workers seems to be growing, the benefits to them are not always appealing. A lot of contingents
do not receive health care benefits, retirement benefits and paid vacations. Frauenheim suggests
that companies develop ways to make contingents feel more appreciated and valued by giving
them uplifting feedback or evaluations of the performance. Mary Ann Davids, a 16 year veteran
at a call center for a large insurance company states that temps crave feedback, some ask every
day how am I doing? (Pg.5, Para.3) Something else companies should realize is contingents
are there voluntarily. Most of them would rather have the steadier work of regular full-time
employment. The positive feedback can add a boost to their morale.
Companies need contingent workers for several reasons: they fill urgent gaps in
employment, help complete work at peak times, keep overhead costs down due to ineligibility to
benefits and theyre able to hire the exact skill needed. Without a contingency workforce
companies would have a real struggle. For these reasons, contingent workers need to feel
appreciated, accepted and valued. Whether it is through an acknowledgement, a positive
evaluation or even an invitation to the company picnic, a happy confident temp worker could
perhaps become a companys next permanent employee.

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Valuing Contingent Workers

In the textbook Understanding Business it says In an era of rapid change and economic
uncertainty, some contingent workers have even found that temping can be more secure than
full-time employment. (Pg.303). Ed Frauenheim believes that many contingent workers want to
feel a sense of inclusion, even if at a distance. The arms-length embrace promises to warm the
hearts of contingents and business executives alike. (Pg.7, Para.2). I have worked five years as a
seasonal employee for a tax company and would love to some day gain full-time employment
doing the same thing. While at times it makes my life a little easier being a temp because of the
flexibility it gives me, there are those times I would rather have the stability of something
permanent.

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Valuing Contingent Workers

References
Frauenheim, E. (2012). Contingent Workers: Why Companies Must Make Them Feel Valued.
Workforce. Retrieved from: http://www.workforce.com/articles/contingent-workers-whycompanies-must-make-them-feel-valued.