Contingent workforce

At conrad & Co, a small private accounting firm in Spartanburg, south carolina, diana galvin started
as a temporary, part time employe before moving into a full-time staff accountant position. She got
her full-time job by learning how to do and then doing her assignments well and offering suggestions
on how the company could improve. But not every temporary worker gets offered a full-time job (or
wants to be offered one). Prior to her full-time employment, Diana was part of what has been called
the contingent workforce. Contingent workers are temporary, freelance, or contract workers whose
employment is contingent upon demand for their services.

Stung by massive and disruptive layoffs that accompained the latest recession, companies
are starting to rethink the way they get work done. As organization eliminate full-time jobs through
downsizing and other organizational restructurings, they often rely on a contingent workforce to fill
in as needed. Also, one of the top-rangking forecats in a survey that asked HR experts to look ahead
10 years to 2018 was that Firms will become adept at sourcing and engaging transient talent
around short-term needs, and will focus considerable energy on the long-term retention of smaller
core talent groups. The model for the contingent worker structural approach can be seen in the film
industry. There, people are essentially free agents who move from project to project apploying
their skills-directing, talent casting, costuming, makeup, set design, and so forth-as needed. They
assemble for a movie, then disband once its finished and move on to the next project. This type of
contingent worker is common in project organizations. But contingent workers can also be
temporary employees brought in to help with special needs such as seasonal work. Lets look at
some of the organizational issues associated with contingent workers.

One of the main issues businesses face with their contingent workers, especially those who
are independent contractors or freelancers, is is classifying who actually qualifies as one. The
decision on who is and who isntt an independent contractor isntt as easy or as unimportant as it
may seem. Companies dont have to pay social security, medicare, or unemployment insurance
taxes on workers classified as independent