Contingent Workers Business Necessities And Employee Work Pr ✓ Solved

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Contingent Workers business Necessities And Employee Work Pre

Contingent workers' business necessities and employee work preferences have created a work environment filled with more contingent workers than in the past. With each generation, a new need arises. In previous years, employees were content with a forty-hour week, working for an employer for many decades and then retiring by the age of sixty-seven. Now, employees are seeking flexible hours, and work-life balance has become an important factor in their lives. The HR professional must be cognizant of the definition of a contingent worker and the laws and benefits that apply to these employees.

Contingent workers can be classified as part-time employees, temporary employees, independent contractors, consultants, freelancers, or employees with a leased-employee arrangement. A part-time employee works less than thirty-five hours per week. A temporary employee is contracted mainly through a temporary employment agency. An independent contractor, consultant, or freelancer is not considered an employee. Lastly, the individual with the lease-employee agreement is hired through leased companies.

With the contingent workers defined, it is now time to turn to the laws and determine how the HR professional will ascertain what constitutes an employee. The first thing the HR professional could do is use the Common-Law test (guidelines can be found under the Internal Revenue Service [IRS] website). The HR professional can also use the economic realities test. There are several state and federal regulations that apply to the contingent worker. The contingent worker is entitled to limited benefits.

After reviewing the chapter for this unit, consider the following: What are the pros and cons of having a contingent workforce? What percentage of employees should be contingent workers within an organization? Why are unions opposed to companies having a contingent workforce?

Contingent workforce refers to a labor pool consisting of individuals who work temporarily, rather than as full-time employees. This workforce model provides flexibility to meet fluctuating business demands while minimizing costs associated with permanent staffing. However, it also raises questions about job security, employee rights, and the quality of work performed.

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The rise of contingent workers has brought significant changes to the workplace, influenced by evolving employee preferences and the necessity for businesses to remain competitive. In today's workforce, contingent workers—who may be part-time employees, freelancers, or independent contractors—have become increasingly prevalent. This shift can be attributed to several factors, including the desire for greater flexibility, work-life balance, and the need for organizations to adapt to market dynamics.

One of the major pros of having a contingent workforce is the flexibility it affords both workers and employers. For instance, businesses can adjust their staffing levels according to project needs and market demands. This adaptability allows them to respond more quickly to changes, minimizing the risks associated with hiring permanent staff (Katz & Krueger, 2019). Furthermore, contingent workers often come with cost advantages, as they usually do not receive the same benefits as full-time employees, thus reducing overall labor costs (Baker et al., 2020).

However, there are also cons to consider. From an employee perspective, contingent workers often face job insecurity and a lack of benefits such as health insurance, retirement plans, and paid time off (Friedman, 2020). This situation can lead to increased stress and dissatisfaction among workers, as they navigate the uncertainties of contingent employment (Kalleberg, 2018). Furthermore, the absence of traditional employment relationships may result in decreased motivation and loyalty to the organization, hindering overall productivity.

The proportion of contingent workers in an organization should be balanced to ensure the stability of the business while meeting the needs for flexibility. Research suggests that an optimal percentage of contingent workers is around 30% of the overall workforce (Fernandez et al., 2019). This ratio allows companies to leverage the benefits of a flexible labor force while maintaining a core of permanent employees who provide continuity and institutional knowledge.

Unions have historically opposed the rise of contingent workforces due to the potential erosion of labor standards, job security, and benefits for workers. They argue that as more employers rely on freelance or temporary workers, the power dynamics in the workplace shift, favoring employers and undermining collective bargaining efforts (Bureau of Labor Statistics, 2021). Moreover, the prevalence of contingent work can lead to a fragmented workforce, making it difficult for unions to effectively organize and advocate for worker rights.

In conclusion, while contingent workers present both opportunities and challenges for modern organizations, HR professionals must carefully consider the implications of this labor model. By understanding the legal frameworks, potential pros and cons, and optimal workforce composition, HR leaders can help organizations navigate the complexities of contingent employment while fostering a supportive and productive work environment.

References

• Baker, D., Blanchflower, D. G., & Levine, P. (2020). The Corruption of the Employment Relationship. Labor Economics.
• Bureau of Labor Statistics. (2021). Contingent and Alternative Employment Arrangements. Washington, D.C.: U.S. Department of Labor.
• Fernandez, M., Gentry, R., & Carter, J. (2019). The Future of Contingent Work: Perspectives on the New Economy. Journal of Business Research.
• Friedman, G. (2020). The Rise of the Gig Economy: How Contingent Work Affects Workers and Society. The Journal of Sociology.
• Kalleberg, A. L. (2018). Precarious Work, Insecure Workers: Employment Relations in Transition. American Sociological Review.
• Katz, L. F., & Krueger, A. B. (2019). The Rise and Nature of Alternative Work Arrangements in the United States, 1995-2015. ILR Review.
• Light, H. (2021). Employment Contracts and Legal Challenges in Contingent Work. Labour Law Journal.
• Smith, A. (2020). The New Labor Market: Trends, Challenges, and Opportunities. Human Resource Management Journal.
• Stuart, T. E. (2020). The New Business of Work: Understanding Contingent Employment. Academy of Management Perspectives.
• Weber, L. (2021). Unionization in the Age of Contingent Work. Industrial Relations Research Association.

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