Going with the flow: Navigating the rise of Contingent Employment
Lets be honest, it can be incredibly challenging trying to keep up with all of the rapidly transforming employment trends, and the ever-changing job market. Temporary employment is something we’re all familiar with, but Contingent? Contract? Gig? What’s the difference?
The shifting landscape that comes alongside the rise of contingent staffing and the gig economy has left many of us wondering about the benefits and risks of embracing some of these changes.
Fear not; we're here to guide you through this dynamic world and shed light on its opportunities and challenges.
Contingent vs. “Gig” - What's the difference?
Contingent staff and the gig economy are two terms that are often used interchangeably, but while objectively similar, there are some key differences between the two.
Contingent staff are not part of a company's permanent workforce. They may be hired temporarily, as contract workers, or as freelancers. Contingent employees are often used to fill short-term staffing needs, provide specialized skills, or work on projects outside of the company's core business. As they're usually hired through a third party, such as a staffing agency, they may be eligible for benefits such as medical insurance through the coordinating recruitment group.
Gig workers, on the other hand, are typically independent contractors who work on a project-by-project basis. Generally, they set their own hours and rates, giving them greater independence and control over their work. However, they are not typically eligible for benefits since they don't flow through a third party which can limiting their access to these and other such perks. In lieu of flowing through a recruitment agency or staffing company, Gig workers typically use online platforms to find and complete work on their own, and they may work for multiple companies simultaneously.
Many companies are now using online platforms to find and hire contingent staff in the same way that they've hired gig workers. As a result, contingent staff and the gig economy have become closely related, with contingent staff often considered part of the gig economy as they are both technically temporary.
Benefits and Risks of Temporary Employment:
Benefits
Flexibility: Temporary employees have the advantage of flexibility, which allows them to explore diverse opportunities and gain experience in various industries or roles. Embracing temporary positions can be an incredible way to expand their skill sets and adaptability.
Compensation: One of the most enticing perks for temporary employees is the potential for higher compensation. Since they don't receive benefits like health insurance or paid time off, employers might allocate more resources towards their salaries, making it an appealing financial prospect for those seeking remuneration for their expertise. Flowing between engagements also offers more opportunities to discuss pay with leadership, as opposed to being at the same company for several years where such conversations will be far more limited.
Opportunities for Growth: Temporary employees often get to work on exciting and high-profile projects, collaborating with seasoned professionals. Such experiences can significantly boost their career prospects and build their professional profiles, opening doors to more permanent positions within the company or industry if desired.
As with every coin, there is a flip side. Let's discuss some of the risks involved in being a temporary employee.
RISKS
Job Security: The primary concern for temporary employees is the lack of job security. As their employment depends on specific projects or business needs, they might face the risk of being laid off or not having their contract renewed after a project's completion. This uncertainty can create stress and instability in their professional lives.
Benefits: Temporary employees may miss out on essential benefits typically enjoyed by full-time staff, such as health insurance, retirement plans, and paid time off. This can place a considerable financial burden on them, making it crucial to carefully assess the compensation package and compare it with potential expenses.
Lack of Training: In some cases, temporary employees might not receive the same level of training as their full-time counterparts. This can hinder their ability to acquire new skills and progress in their careers. To overcome this, temporary employees should actively seek self-improvement and personal development opportunities.
There's no "one size fits all" when weighing out the benefits and risks of your employment situation. Whether you prefer to be a permanent employee, part of the contingent workforce, or a member of the gig economy, the choice will ultimately be based on personal circumstances and preferences.
If you're new to exploring the world of temporary employment, here are some tips that will help you get the most out of it.
Tips for Maximizing Temporary Employment:
Communicate with your Recruiter (contingent): A good recruiter is a genuine partner and coach. They will truly strive to see their job seekers succeed just as much as their clients and, therefor, will keep both parties' needs in mind when considering a potential match. It's essential that you keep your recruiter in the loop transparently. Be honest with them about your skills and experience, and keep them updated on any developments on your end. If you see a job on your own that interests you, send it to them! They might already have an "in" with the hiring manager or will at least be able to assess you how you measure up to the job requirements and, therefore, which skills you may want to develop in order to land it. They should also be able to coach you on how to approach every step of the search for optimal results.
Negotiate Your Pay: Temporary employees should not shy away from negotiating their pay. Research industry standards and be prepared to demonstrate your value to the organization. A fair and competitive salary will reflect your skills and expertise accurately.
Be Proactive in Your Job Search: In the world of contingent staffing, being proactive is essential. Network with professionals in your field, stay up-to-date with industry trends and actively seek new job opportunities. Leverage online platforms and professional events to make meaningful connections.
Build Strong Relationships: Invest time and effort in building positive relationships with your colleagues and managers. A good rapport can lead to repeat assignments, referrals, and potential long-term opportunities. Remember, networking is not just for full-time employees.
Last but not least, a few insights from employees regarding contingent staffing:
According to a survey by CareerBuilder, an impressive 72% of contingent workers are satisfied with their work-life balance. This highlights the flexibility and adaptability that temporary employment offers individuals seeking a harmonious balance between their personal and professional lives.
Another survey by Randstad found that 63% of contingent workers say they have more opportunities for advancement than they would as full-time employees. This finding underlines the potential for growth and skill development of embracing temporary roles.
In a study by the Society for Human Resource Management, 57% of contingent workers expressed they are more likely to take on new challenges than they would as full-time employees. Temporary employment can provide unique opportunities to explore different projects and industries, fostering continuous learning and personal growth.
A survey by Staffing Industry Analysts revealed that 47% of contingent workers feel they are more likely to work on exciting projects than they would as full-time employees. This further emphasizes the diverse and dynamic experiences that temporary employees can encounter throughout their careers.
In conclusion, all temporary employment such as contingent staffing and gig based roles offer both exciting prospects and potential challenges for employees. The flexibility, competitive pay, and growth opportunities make temporary employment attractive for those seeking diverse experiences and career advancement. However, it is essential to be mindful of your needs when weighing the potential risks, such as job insecurity and a lack of benefits.
By considering these factors and leveraging the tips provided earlier, temporary employees can make the most of their contingent work experience, laying the groundwork for a fulfilling and successful career journey and establishing themselves within the evolving flow of the workforce. Happy hunting!