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Contingent Worker

Back to HR Glossary
Table of Contents
  • What is a contingent worker?
  • What factors may motivate individuals to pursue work as contingent workers?
  • Can any worker be classified as a contingent worker?

What is a contingent worker?

A contingent worker is an individual who is hired on a non-permanent basis, typically for a specific project, assignment or period of time, rather than an ongoing permanent role with a company.

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Image showing the meaning of contingent worker

They may also be referred to as temporary workers, freelancers, or contractors. Contingent workers typically do not receive the same benefits and job security as permanent employees.

What factors may motivate individuals to pursue work as contingent workers?

There are several reasons why some workers choose to work as contingent employees:

  1. Flexibility: Contingent work allows individuals to choose when and where they work, and to have more control over their schedule and work-life balance.
  2. Variety: These workers have the opportunity to work on a variety of projects and assignments, often in different industries and with different companies, which can be more interesting and engaging than working in a permanent role.
  3. Control over earning: Some workers prefer the control and potential for higher earnings that can come with being paid on a project or contract basis, as opposed to a fixed salary.
  4. Self-employment: Some people prefer the independence and autonomy of self-employment, and may choose to work as an independent contractor or freelancer instead of being tied to one employer.
  5. Specialized skills: Contingent worker are often experts in their field, having specialized skills and knowledge that employers want to hire for specific projects.

It’s worth noting that it is not always a choice, sometimes due to the nature of their field or the availability of job, some workers have to take a contingent role.

Can any worker be classified as a contingent worker?

It is not always clear if an individual can be classified as a contingent worker, as there are laws and regulations in place to protect workers from being misclassified in this way.

Factors such as the nature of the work, the permanency of the relationship, the level of control, and investment in equipment and facilities, among others, must be considered in order to make a determination.

As these complexities are quite high, it is advisable to seek legal advice before determining if an individual can be classified as a contingent worker.

Table of Contents
  • What is a contingent worker?
  • What factors may motivate individuals to pursue work as contingent workers?
  • Can any worker be classified as a contingent worker?

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  • Product
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      • Edtech
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    • By use case
      • Lateral hiring
      • Diversity and inclusion
      • Volume hiring
      • Remote hiring
      • Blue collar hiring
      • Freelance hiring
      • Campus hiring
    • By test type
      • Role specific
      • Language
      • Programming
      • Software skills
      • Personality & culture
      • Cognitive ability
      • Situational judgment
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      • Engineering
    • By company type
      • For startups 
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      • Enterprises
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      • Public sector
  • Resources
    • Blogs
    • HR tools
      • AI Job description generator
      • Cost per hire calculator
      • Attrition rate calculator
      • Employee NPS calculator
      • Applicant funnel calculator
      • Average Time to Hire
      • Employee turnover
      • Sourcing channel efficiency
      • Remote work cost savings
      • Quality of hire calculator
      • Interview-to-hire offer
      • Recruiting conversion rate
      • Job offer acceptance rate
      • Hiring manager satisfaction
    • Hiring guides
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