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Contingent workers are workers who do not necessarily have an implicit or explicit contract for ongoing employment and are known as “on-demand” workers (Martocchio, 2017).

Contingent workers are workers who do not necessarily have an implicit or explicit contract for ongoing employment and are known as “on-demand” workers (Martocchio, 2017).

Please read each passage below and respond to each part. I DO NOT need a reference or title page, however please provide the reference(s) underneath the passage. Please label as I have done below, example Part 1 and place your response along with the reference. Please keep each one on the same document! Please cite properly and use correct grammar. DUE Tomorrow by 6PM CST 6/6/22

Part 1

Contingent workers are workers who do not necessarily have an implicit or explicit contract for ongoing employment and are known as “on-demand” workers (Martocchio, 2017). Part-time employees are employees who work less than 35 hours a week. Organizations hire part-time workers during peak business periods to help minimize overtime pay costs (Martocchio, 2017). Hiring hourly employees eliminates overtime pay, decreases vacation or personal day pay, or they do not get paid holiday pay. Companies can save on costs by adding this type of employee to their organization. Temporary employees are used to temporarily fill in for core employees who are on approved leaves of absence or to offer extra sets of hands when the company’s business peaks (Martocchio, 2017). This type of employee is used for short-term purposes. Independent workers establish their own relationship with organizations rather than through temporary employment agencies or lease companies, and they possess specialized skills that are in short supply (Martocchio, 2017). And telecommuting is an employee who works from home or outside of the organization.

Part-time employees earn less, on average, than core employees yet are expected to do more than their fair share of the work (Martocchio, 2017). Part-time employees also do not receive benefits, but it can vary, depending on the organization. One major issue for part-time employees is that employers are not required to offer insurance such as medical, dental, vision, or life insurance, something that the employee may need (Martocchio, 2017). Temporary employees may find themselves in unfavorable pay situations. Because their work is only temporary, and for a brief period, they do not have time to research how much they should get paid for a job. These individuals, however, do receive overtime pay if they work beyond 40 hours per week (Martocchio, 2017). They too do not receive benefits. Independent workers run into issues where they may not be protected under laws like the ERISA, FMLA, NLRA, Title VII, or the ADA. Telecommuting employees typically are provided benefits that are flexible since they work remotely. Since contingent workers are not considered permanent employees, their compensation and benefits are inconsistent. Money saved by hiring these individuals is used elsewhere within the organization to improve other areas such as employee retention, engagement, motivation, benefits, compensation, training, expanding, or remodeling the organization to name a few. Although the organization is cutting back costs by utilizing these contingent workers, contingent workers may also feel they are being overworked, abused, and underappreciated, and therefore can decrease morale and productivity. Where the organization thinks they are hiring smarter by saving in costs, not providing these individuals with better compensation, benefits, rewards, or incentives can actually decrease their morale where they are not producing the numbers needed for the company to be successful. In cases like this, the company has then wasted time and money in training individuals who are not helping to increase productivity so they must be careful when hiring these workers. Otherwise, it can be extremely helpful when it comes to reducing turnover and increasing morale.

Reference

Martocchio, J.J. (2017). Strategic compensation: A human resource management approach  (9th ed.). Pearson.

Part 2

Organizations are always looking for ways to cut costs to help increase profitability. With labor being one of the biggest expenses in business, it’s only natural that companies would start looking for innovative ways to get work done more efficiently at lower costs.

Millions of contingent workers “are not covered by workers’ compensation insurance for medical benefits for work-related injury and illness” (Lykins, 2011). Often, as contingent workers, the part-time, temporary, independent workers, and flexible/telecommuting workers are not covered by workers’ compensation insurance, nor do they receive any company benefits and compensation, such as health insurance or a retirement plan.

Legally, part-time employees work 35 or fewer hours weekly. The employer, not burdened with the cost of a benefits package, can save company money. Part-time workers seldom receive benefits.

Companies hire temporary workers, for example, for seasonal work or vacationing employees. The agency that provides the employees assumes much cost and liability. “The agency is responsible for and bears the financial burden of recruiting, screening, testing and hiring workers; payroll expenses and paperwork; payroll and withholding taxes; unemployment and workers’ compensation insurance; and any employee benefits they may wish to provide” (Schaefer, 2005).

Independent workers obtain their customers. Examples are management consultants, house cleaners, and real estate agents. “Unfortunately, current tax, labor, and employment law gives employers and employees incentives to create contingent relationships, not for flexibility or efficiency but to evade their legal obligations” (Safety and health, 2011). Employers might choose to hire independent workers to avoid paying for health insurance, unemployment insurance, and worker’s compensation and avoid paying into the Social Security fund. Contingent workers lose the protection of many labor and employment laws.

Flexible/telecommuters can be full-time, part-time, temporary, or independent workers and often work from home. If full-time employees, telecommuters afford the same protection in the home as they do at work. However, if part-time or independent, the same lack of legal protection exists.

Lykins, L. (2011, February 16). The contingent worker debate. http://www.i4cp.com/trendwatchers/2011/02/16/the-contingent-worker-debate

Schaefer, P. (2005). The pros and cons of hiring a temp. fromhttp://www.businessknowhow.com/manage/hire-temp.htm

United States Department of Labor, Office of the Secretary. (2011). Safety and health programs and employee involvement. Contingent workers. http://www.dol.gov/_sec/media/reports/dunlop/section7.htm


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