Contingent work,casual work,gig work orcontract work, is anemployment relationship with limitedjob security, payment on apiece work basis, typicallypart-time (typically with variable hours) that is considered non-permanent.
According to the USBureau of Labor Statistics (BLS), the nontraditional workforce includes "multiple job holders, contingent andpart-time workers, and people in alternative work arrangements".[1] These workers currently represent a substantial portion of the US workforce, and "nearly four out of five employers, in establishments of all sizes and industries, use some form of nontraditional staffing". "People in alternative work arrangements" includesindependent contractors, employees of contract companies, workers who are on call, and temporary workers.[1]
Contingent workers are also often calledconsultants,freelancers,independent contractors, independent professionals, temporary contract workers, staff-augmentation workers, ortemps.[2][3] Contingent[4] work jobs are widely referred to asMcJobs.[5] This term was made popular byDouglas Coupland's novelGeneration X: Tales for an Accelerated Culture, and stems from the notion that employment inMcDonald's and otherfast food andretailbusinesses is frequently insecure. The term contingent workers differ from regular employees primarily in the nature of their employment relationship and contractual arrangements. Contingent workers perform services under short-term or project-based contracts, without continuous relationship with the employer, while employees typically work for an organization on a long-term basis and are included on its payroll[6][7]
The concept of what is now considered to be ajob, where one attends work at fixed hours was rare until theIndustrial Revolution. Before then, the predominant regular work was inagriculture.Textile workers would often work from home, buying rawcotton from amerchant,spinning it andweaving it intocloth at home, before selling it on.
In the 1770s,cotton mills started to appear inLancashire,England, usingRichard Arkwright'sspinning jenny and powered bywater wheels. Workers would often work in twelve-hour shifts, six days a week. However, they would still often be paid on apiece work basis, andfines would be deducted from their pay for damage tomachinery. Employers couldhire andfire largely as they pleased, and if employees had anygrievance about this, there was very little that they could do about it.[citation needed]
Individual workers were powerless to prevent exploitation by their employers. However, the realization that all workers generally want the same things, and the benefits ofcollective bargaining, led to the formation of the firsttrade unions. As trade unions became larger, theirsphere of influence increased, and started to involvepoliticallobbying, resulting in much of theemployment law that is now taken for granted.
Manufacturing has declined during the 20th century in theWestern world. Many manufacturing organisations that employ large numbers of people have relocated their operations todeveloping nations. As a result, whenever they do hire staff inEurope orNorth America, they often need to be able to fire them quickly and keep costs as low as possible, to remaincompetitive. As a result, some employers may look forloopholes in employment law, or ways of engaging staff that allows them to circumvent union-negotiated employment law, creating what is now known as contingent work.
By engaging contract workers, organizations are able to be agile and save costs. The contingent workforce acts as a variable workforce for companies to select from to perform specific projects or complete specialized projects.[8]
Also as organizations make efforts to be more agile and to quickly respond to change in order to be more competitive, they turn to the contingent workforce to have on-demand access to professionals and experts.[9] Organizations also see the opportunity to reduce benefits and retirement costs by engaging the contingent workforce.[8] However, there is risk involved in avoiding these costs if an employee isimproperly classified as a contingent worker. Using the contingent workforce is also cost-effective in that using contingent labor allows for adjustments to employment levels and employment costs depending on what kind of expertise and labor is need and at what time it is needed.
Trends in the contingent workforce are also impacted by the economy. A study conducted by the MPS Group shows the relationship between the contingent labor cycle and the state of the economy.[10] In an expanding economy, the demand for contingent labor is strong. This is most likely because organizations are trying to grow with the economy, and using contingent workers allows them to work with experts when needed, without the long-term costs of hiring them.
Among several other contributing factors,globalization has had a large impact on the growth in using contingent labor. Globalization contributes to rapid growth in industries, increased outsourcing, and a need for flexibility and agility to remain competitive.[11]
A knowledge-driven economy also contributes to the growth in the use of the contingent workforce because organizations rely more on their specific and expert knowledge and expertise.[12] As demand increases for highly skilled and knowledgeable people, the expertise of contract workers becomes more attractive.
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Contingent workers are at a high risk of being injured or killed on the job. In 2015, 829 fatal injuries (17% of all occupational fatalities) occurred among contract workers, which only represent a subset of contingent workers.[13] Studies have also shown a higher burden of non-fatal occupational injuries and illnesses among contingent workers compared to those in standard employment arrangements.[14][15]
There are many possible contributing factors to the high rates of injuries and illnesses among contingent workers. They are often inexperienced and assigned to hazardous jobs and tasks,[16][15][17][18] may be reluctant to object to unsafe working conditions or to advocate for safety measures for fear of job loss or other repercussions,[17] and they may lack basic knowledge and skills to protect themselves from workplace hazards due to insufficient safety training.[19]
According to a joint guidance document released by theOccupational Safety and Health Administration (OSHA) and theNational Institute for Occupational Safety and Health (NIOSH), both staffing agencies and host employers in the United States (clients of staffing agencies) are responsible for providing and maintaining a safe and healthy work environment for contingent workers.[20] Collaborative and interdisciplinary (e.g., epidemiology, occupational psychology, organizational science, economics, law, management, sociology, labor health and safety) research and intervention efforts are needed to protect and promote the occupational safety and health of contingent workers.[21]
In 2022, NIOSH and partners released a set of occupational safety and health best practices for host employers of temporary workers.[22] Checklists to foster adoption of the best practices and a slide deck staffing companies can use to educate their host employer clients about the best practices are also included.
Kathleen Christensen.