Contingent work, casual work, or contract work, is an employment relationship with limited job security, payment on a piece work basis, typically part-time (typically with variable hours) that is considered non-permanent. Although there is less job security, freelancers often report incomes higher than their former traditional jobs. [1]
Contingent workers are also often called consultants, freelancers, independent contractors, independent professionals, temporary contract workers or temps. [2] [3]
According to the US Bureau of Labor Statistics (BLS), the nontraditional workforce includes "multiple job holders, contingent and part-time workers, and people in alternative work arrangements". [4] 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" includes independent contractors, employees of contract companies, workers who are on call, and temporary workers. [4]
The concept of what is now considered to be a job, where one attends work at fixed hours was rare until the Industrial Revolution. Before then, the predominant regular work was in agriculture. Textile workers would often work from home, buying raw cotton from a merchant, spinning it and weaving it into cloth at home, before selling it on.
In the 1770s, cotton mills started to appear in Lancashire, England, using Richard Arkwright's spinning jenny and powered by water wheels. Workers would often work in twelve-hour shifts, six days a week. However, they would still often be paid on a piece work basis, and fines would be deducted from their pay for damage to machinery. Employers could hire and fire pretty much as they pleased, and if employees had any grievance about this, there was very little that they could do about it.
Individual workers were powerless to prevent exploitation by their employers. [ citation needed ]. However, the realization that all workers generally want the same things[ citation needed ], and the benefits of collective bargaining, led to the formation of the first trade unions. As trade unions became larger, their sphere of influence increased, and started to involve political lobbying, resulting in much of the employment law that is now taken for granted.[ citation needed ]
Manufacturing has declined during the 20th century in the Western world. Many manufacturing organisations that employ large numbers of people have relocated their operations to developing nations. As a result, whenever they do hire staff in Europe or North America, they often need to be able to fire them quickly and keep costs as low as possible, to remain competitive. As a result, some employers may look for loopholes 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.[ citation needed ]
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. [5]
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. [6] Organizations also see the opportunity to reduce benefits and retirement costs by engaging the contingent workforce. [5] However, there is risk involved in avoiding these costs if an employee is improperly 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. [7] 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. [8]
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. [9] As demand increases for highly skilled and knowledgeable people, the expertise of contract workers becomes more attractive.
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. [10] Studies have also shown a higher burden of non-fatal occupational injuries and illnesses among contingent workers compared to those in standard employment arrangements. [11] [12]
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, [13] [12] [14] [15] may be reluctant to object to unsafe working conditions or to advocate for safety measures for fear of job loss or other repercussions, [14] and they may lack basic knowledge and skills to protect themselves from workplace hazards due to insufficient safety training. [16]
According to a joint guidance document released by the Occupational Safety and Health Administration (OSHA) and the National Institute for Occupational Safety and Health (NIOSH), both staffing agencies and host employers (clients of staffing agencies) are responsible for providing and maintaining a safe and healthy work environment for contingent workers. [17] 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. [18]
In 2022, NIOSH and partners released a set of occupational safety and health best practices for host employers of temporary workers. [19] 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.
Contingent [20] work jobs are widely referred to as McJobs. [21] This term was made popular by Douglas Coupland's novel Generation X: Tales for an Accelerated Culture , and stems from the notion that jobs in McDonald's and other fast food and retail businesses are frequently insecure.
| Advantages [2] | Disadvantages |
|---|---|
| Flexibility in type and amount of labor resources | Lack of loyalty to employer or company |
| Save costs in benefits and tax | Disturbs organization's core morale and culture |
| Immediate access to expertise not present internally | Training costs |
| Savings in long-term compensation costs | Worker carries the full risk, limited benefits |
Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any other entity, pays the other, the employee, in return for carrying out assigned work. Employees work in return for wages, which can be paid on the basis of an hourly rate, by piecework or an annual salary, depending on the type of work an employee does, the prevailing conditions of the sector and the bargaining power between the parties. Employees in some sectors may receive gratuities, bonus payments or stock options. In some types of employment, employees may receive benefits in addition to payment. Benefits may include health insurance, housing, disability insurance. Employment is typically governed by employment laws, organisation or legal contracts.
Temporary work or temporary employment refers to an employment situation where the working arrangement is limited to a certain period of time based on the needs of the employing organization. Temporary employees are sometimes called "contractual", "seasonal", "interim", "casual staff", "outsourcing", "freelance"; or the words may be shortened to "temps". In some instances, temporary, highly skilled professionals refer to themselves as consultants. Increasingly, executive-level positions are also filled with interim executives or fractional executives.
Freelance, freelancer, or freelance worker, are terms commonly used for a person who is self-employed and not necessarily committed to a particular employer long-term. Freelance workers are sometimes represented by a company or a temporary agency that resells freelance labor to clients; others work independently or use professional associations or websites to get work.
An occupational injury is bodily damage resulting from working. The most common organs involved are the spine, hands, the head, lungs, eyes, skeleton, and skin. Occupational injuries can result from exposure to occupational hazards, such as temperature, noise, insect or animal bites, blood-borne pathogens, aerosols, hazardous chemicals, radiation, and occupational burnout.
An independent contractor is a person, business, or corporation that provides goods or services under a written contract or a verbal agreement. Unlike employees, independent contractors do not work regularly for an employer but work as required, when they may be subject to law of agency. Independent contractors are usually paid on a freelance basis. Contractors often work through a limited company or franchise, which they themselves own, or may work through an umbrella company.
Job security is the probability that an individual will keep their job; a job with a high level of security is such that a person with the job would have a small chance of losing it. Many factors threaten job security: globalization, outsourcing, downsizing, recession, and new technology, to name a few.
An employment agency is an organization which matches employers to employees. In developed countries, there are multiple private businesses which act as employment agencies and a publicly funded employment agency.
The Health Hazard Evaluation (HHE) program is a workplace health program administered by the National Institute for Occupational Safety and Health (NIOSH). NIOSH developed the HHE program to comply with a mandate in the Occupational Safety and Health Act of 1970 to investigate workplace health hazards reported by employers and employees. According to Section 20(a)(6) of the Act, the Secretary of Health and Human Services is authorized "following a written request by any employer or authorized representative of employees, to determine whether any substance normally found in the place of employment has potentially toxic effects in such concentrations as used or found."
"Dirty, dangerous and demeaning", also known as the 3Ds, is an American neologism derived from the Asian concept, and refers to certain kinds of labor often performed by unionized blue-collar workers.
Occupational stress is psychological stress related to one's job. Occupational stress refers to a chronic condition. Occupational stress can be managed by understanding what the stressful conditions at work are and taking steps to remediate those conditions. Occupational stress can occur when workers do not feel supported by supervisors or coworkers, feel as if they have little control over the work they perform, or find that their efforts on the job are incommensurate with the job's rewards. Occupational stress is a concern for both employees and employers because stressful job conditions are related to employees' emotional well-being, physical health, and job performance. The World Health Organization and the International Labour Organization conducted a study. The results showed that exposure to long working hours, operates through increased psycho-social occupational stress. It is the occupational risk factor with the largest attributable burden of disease, according to these official estimates causing an estimated 745,000 workers to die from ischemic heart disease and stroke events in 2016.
Global workforce refers to the international labor pool of workers, including those employed by multinational companies and connected through a global system of networking and production, foreign workers, transient migrant workers, remote workers, those in export-oriented employment, contingent workforce or other precarious work. As of 2012, the global labor pool consisted of approximately 3 billion workers, around 200 million unemployed.
A dead-end job is a job where there is little or no chance of career development and advancement into a better position. If an individual requires further education to progress within their firm that is difficult to obtain for any reason, this can result in the occupation being classified as a dead-end position. Based on human resources and career strategist Toni Howard Lowe, some individuals who have worked for the same company for several years may not be privy to the signs that they are currently employed in a dead-end job.
Occupational health nursing is a specialty nursing practice that provides for and delivers health and safety programs and services to workers, worker populations, and community groups. The practice focuses on promotion, maintenance and restoration of health, prevention of illness and injury, and protection from work‐related and environmental hazards. Occupational health nurses (OHNs) aim to combine knowledge of health and business to balance safe and healthful work environments and a "healthy" bottom line.
Occupational safety and health (OSH) or occupational health and safety (OHS), also known simply as occupational health or occupational safety, is a multidisciplinary field concerned with the safety, health, and welfare of people at work. These terms also refer to the goals of this field, so their use in the sense of this article was originally an abbreviation of occupational safety and health program/department etc. OSH is related to the fields of occupational medicine and occupational hygiene.
Total Worker Health is a trademarked strategy defined as policies, programs, and practices that integrate protection from work-related safety and health hazards with promotion of injury and illness prevention efforts to advance worker well-being. It was conceived and is funded by the National Institute for Occupational Safety and Health (NIOSH). Total Worker Health is tested and developed in six Centers of Excellence for Total Worker Health in the United States.
Agricultural safety and health is an aspect of occupational safety and health in the agricultural workplace. It specifically addresses the health and safety of farmers, farm workers, and their families.
Occupational heat stress is the net load to which a worker is exposed from the combined contributions of metabolic heat, environmental factors, and clothing worn which results in an increase in heat storage in the body. Heat stress can result in heat-related illnesses, such as heat stroke, hyperthermia, heat exhaustion, heat cramps, heat rashes and chronic kidney disease. Although heat exhaustion is less severe, heat stroke is a medical emergency and requires emergency treatment, which if not provided can even lead to death.
Gig workers are independent contractors, online platform workers, contract firm workers, on-call workers, and temporary workers. Gig workers enter into formal agreements with on-demand companies to provide services to the company's clients.
The Census of Fatal Occupational Injuries, or the CFOI Program is a Federal/State cooperative program that publishes data on fatal cases of work-related injuries for all States, Territories, and New York City. The CFOI has detailed information on those who died at work due to a traumatic injury. CFOI data include all fatalities that occurred in the reference year that were the result of a workplace injury, regardless of when the injury occurred.
The Survey of Occupational Injuries and Illnesses or the SOII program is a Federal/State cooperative program that publishes annual estimates on nonfatal occupational injuries and illnesses. Each year, approximately 200,000 employers report for establishments in private industry and the public sector. In-scope cases include work-related injuries or illnesses to workers who require medical care beyond first aid. See the Occupational Safety and Health Administration (OSHA) for the entire record-keeping guidelines. The SOII excludes all work-related fatalities as well as nonfatal work injuries and illnesses to the self–employed; to workers on farms with 11 or fewer employees; to private household workers; to volunteers; and to federal government workers.
Kathleen Christensen.
