Within the job market and employment, one crucial shift is the rise of contingent workers, a workforce offering flexibility and opportunities for professionals and job seekers. Whether you’re seeking a new position or looking to fill one, understanding this type of employment is essential.

In this article, we will explore what contingent workers are, the rise of this type of employment, key considerations for job seekers and our best tips for new contingent workers in the market. 

What Are Contingent Workers?

In broad terms, contingent workers definition is professionals who are hired on a non-permanent basis. This includes freelancers, consultants, contractors and temporary employees. Compared to traditional full-time employees, contingent workers don't receive any benefits such as healthcare and paid time off, and are contracted for a certain period or project. 

This reliable working model has gained popularity over the recent years due to changes within workplaces, current technological advancements and cost savings. Businesses often work with contingent workers for a short period and can access specialised skills without committing to long-term employee contractors. 

The Rise of the Contingent Workforce

According to a 2024 report by Statista, nearly 36% of U.S. workers now identify as part of the contingent workforce, a figure expected to rise. This trend isn’t limited to the U.S., but also works globally. This growth reflects the shift toward gig workers and project-based employment, which suits both businesses and workers who seek flexibility. 

Employers are now embracing this change to stay ahead in the market. They gain access to a wide range of talent pools while controlling costs. Job seekers, often younger professionals, are drawn to more freedom and contingent work due to growing markets and a desire for easy access to various projects. 

Benefits of Hiring Contingent Workers

For businesses, hiring contingent workers offers many advantages:

1. Cost Effective

Hiring contingent workers can reduce any overhead costs. Employers usually offer benefits such as office spaces, onboarding expenses and employee benefits. However ,working with contingent workers is known as cost-effective and doesn’t require employee benefits. 

1. Specialized Skills

Contingent workers can often bring additional skills to the current workforce that aren’t already available from other employees. This is particularly useful for short-term projects that require specific skills or creative solutions. 

1. Flexibility 

Businesses can scale their teams according to the project's demands. This is effective for contingent workers who want flexibility and can support specific projects. 

1. Reduce Legal Liability 

Many contingent workers are often self-employed or work with staffing agencies, which essentially limits legal responsibilities compared to hiring permanent staff. 

As you can see, there are numerous advantages to working with contingent workers, ensuring that projects can be completed effectively with the right skill sets and workers in place. 

Advantages for Job Seekers

Contingent work offers numerous benefits for professionals seeking to explore a new career path or work style. Here are some benefits for job seekers:

1. Diversity 

By working with a wide range of clients and industries, many contingent workers can expand their portfolio and network by working directly with independent clients themselves. This will help to increase their chances of success in this type of work and enable them to work with a wide range of clients. 

1. Flexibility 

Many contingent roles offer freedom for workers to set their own schedules, which is ideal for balancing work and home life. This is also important for people who prefer non-traditional working hours due to personal obligations. 

1. Opportunities 

Temporary assistance often serves as a stepping stone to securing permanent, full-time employment. Many businesses use contingent roles to look for candidates who are willing to move towards permanent positions. 

1. Independence 

Independent contractors and freelancers often see themselves as small businesses by setting their rates and taking on specific projects, which helps to grow their independence. 

As you can see, there are advantages for job seekers who are considering contingent work and freelancing, as it allows individuals to gain independence, receive flexibility, and work towards wider job opportunities. 

Key Considerations for Employers

Before hiring freelancers or contingent workers, employers must address some critical issues which can occur:

1. Compliance: Sometimes, misclassifying employees as contractors can lead to legal issues and penalties. Businesses must follow the required legal standards, such as IRS Common Law Rules and the Department of Labor’s guidelines. 
2. Onboarding: Businesses must ensure they continue to onboard and train freelancers and contractors, so they understand the required processes and expectations, including those specific to their role. This helps to support productivity and ensure compliance. 
3. Security: Contingent workers may need to access sensitive business information. Employers need to establish and maintain the correct data security systems and agreements to protect their business data. 
4. Clarity: Employers must give a clear outline of work duration, deliverables and payment terms in a written contract to avoid any issues.

If employers and businesses understand these key considerations, freelancers and contingent workers can ensure they’re working with the right companies to help support a wide range of projects.

How to Succeed as a Contingent Worker

To thrive in the world of different industries and businesses, contingent workers should consider these important tips:

1. Building your Brand: Ensure to highlight your skills and expertise through your digital portfolio, website or LinkedIn profile to ensure you’re growing your own business. 
2. Stay Educated: Keep up to date with certain industry trends and upgrade your skills in order to stay ahead of the market. 
3. Know your Rights: Understand the legal rights and responsibilities involved in your country or region. For example, the U.S Department of Labor offers important guidelines on employment and contingent work. 
4. Negotiate: Put yourself out there and negotiate contract terms, including payment schedules, project information and property rights. 

To succeed in different workplaces and industries, it’s essential to take these considerations into account and ensure you’re growing every day as a contingent worker to ensure you’re developing within the market. 

Final Thoughts

The contingent workforce is viewed as a popular employment model utilised across various businesses and industries. For job seekers, this provides an insight into flexibility, experience and diverse roles. For employers, this gives access to specialized skills and cost-effective staffing solutions.

By understanding the importance of defining contingent workers, their implications, and best practices, both parties can make informed decisions. Whether you’re hiring or job hunting, this type of employment model can lead to more dynamic and beneficial working relationships for the future.