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HR Glossary

Contingent Staff

Contingent staff refers to employees who are not on a permanent contract and are typically hired on a temporary, project or seasonal basis.

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What is contingent staff?

Contingent Staff is refers to employees who are not on a permanent or long-term contract with a company or organization.

Image showing the meaning of contingent staff
Image showing the meaning of contingent staff

Contingent staff qualities

Contingent staff may possess a variety of qualities depending on the job they are hired to do, but some common qualities that are sought after in these workers include:

  • Flexibility: The ability to adapt to different work environments and changing project requirements.
  • Specialized skills: Contingent workers are often hired for their specific skillset that are needed for a particular job or project.
  • Reliability: The ability to show up on time and follow through on commitments, with a good work ethic.
  • Professionalism: They need to act with the same level of professionalism and follow the same rules as permanent employees.
  • Technical proficiency: Contingent staff should be well-versed in the tools and technologies required to perform their job effectively.
  • Self-management: The ability to manage one’s own time and resources effectively when working independently.
  • Strong communication skills, since they work with different teams and managers.
  • Strong problem solving skills: Contingent staff is often brought in to solve specific problems or to fill specific skill gaps on a project, so they should be able to think critically and creatively to tackle these challenges.

What are the benefits of hiring contingent workers?

There are several potential benefits to an organization that hires contingent workers, including the ability to: HBR’s labor research projects that contingent workers will represent over 40% of the US workforce within the decade as organizations prioritize workforce flexibility. SHRM’s talent acquisition guidance recommends a formal contingent workforce strategy that defines when and how to engage each type of non-permanent worker.

  • Adjust the size of their workforce as needed without committing to permanent employees.
  • Access specialized skills for specific projects that their current workforce may not possess.
  • Save on compensation and benefits costs such as overtime and healthcare.
  • Save on training costs as contingent workers often possess advanced knowledge and skills.
  • Avoid tax responsibilities by not having to withhold and deposit payroll taxes, and not having to pay matching employer contributions for Social Security and Medicare taxes.

Managing contingent staff requires the same rigor as permanent workforce planning. Using pre-employment assessments alongside a structured hiring plan ensures compliance. Strong talent acquisition practices focused on skills-based hiring improve outcomes.

Frequently asked questions

Contingent staff includes temporary workers (from staffing agencies or direct hire), freelancers and independent contractors, part-time employees without guaranteed hours, seasonal workers, leased employees, project-based consultants, and gig workers engaged through digital platforms. The common thread is non-permanent, non-guaranteed employment.

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