10  ILLINOIS BUSINESS LEADER
FOCUS
Managing contingent workers only 
gets more complex as 2024 moves 
further. With more companies 
relying on part-time, temporary, and 
freelance workers, effectively over­
seeing a fluid workforce mix requires 
new strategies.
	
This article will look at the 
upside and downside of contingent 
staffing. It will provide tips for maxi­
mizing productivity and engagement 
when other team members are not 
actually employees. For those utiliz­
ing contingent workers or consider­
ing it, learning strategies to manage a 
blended workforce is key to success.
What Is a Contingent 
Workforce?
A contingent workforce is composed 
of workers who are not permanent 
employees. Companies hire contin­
gent workers on a temporary basis. 
They include independent contrac­
tors, freelancers, consultants, tempo­
rary staff, and part-time workers who 
work on specific projects, handle 
short-term assignments, or provide 
specialized skills that are not avail­
able in the permanent workforce. The 
use of a contingent workforce allows 
companies to maintain flexibility, 
manage labor costs, and quickly 
adapt to changing business needs.
Contingent Workforce vs. 
Contract Employees
Contingent workers are temporary 
employees hired to supplement a 
company’s full-time staff. They are 
not permanent members of the com­
pany and paid by the hour or project. 
Contingent workers allow companies 
to scale their workforce up or down 
as needed without the commitment 
of hiring full-time employees.
	
On the other hand, contract em­
ployees are temporary workers hired 
for fixed terms, often 3-12 months. 
They receive benefits such as health 
insurance and paid time off. Contrac­
tors fill temporary staffing needs, but 
companies can hire them on a long-
term basis.
	
For companies, contingent work­
ers offer flexibility and reduced costs 
since they do not receive benefits. 
But contingent workers may lack loy­
alty and require extra management. 
Contract employees provide stability 
but at a higher cost.
	
Companies must weigh the pros 
and cons of each option based on 
their unique needs and situation. 
Contingent and contract work­
ers play a vital role in the modern 
workforce. With the rise of the gig 
economy, contingent work is likely to 
Written by Salary.com Staff
May 27, 2024
The use of a contingent workforce allows companies to 
maintain flexibility, manage labor costs, and quickly adapt 
to changing business needs.
Managing Contingent Workforce in 2024: Tips

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