Key Learning Blog: In a sense - all jobs are temporary

The Contingent Workforce

One labor market trend that continues to gain momentum is the use of “contingent” or temporary workers by many companies. If you are having difficulty finding a new position in the workforce after a layoff, you may want to consider the “contingent” avenue as the path to your next job.

According to Wikipedia: “A contingent workforce is a provisional group of workers who work for an organization on a non-permanent basis, also known as freelancers, independent professionals, temporary contract workers, independent contractors or consultants.”

The temporary help industry has been around for many years. After companies downsize, they often rely on temp workers since they can use them as they need them without any guarantees. Many companies use temporary workers to manage the number of full-time permanent employees, or to meet specific demands during a growth stage. Other companies use temp help firms as part of their human resources strategy to find and test candidates for permanent positions. Temp agencies are well known for supplying clerical help or general labor, but they also represent technical or professional personnel, supervisors, and managers.

There are firms in all major cities that place professional, managerial, or technical personnel in companies on a contract basis. Contracts may last as longer than a year and the successful contract workers may end up being offered a permanent position.

There are several important advantages if you are considering such employment:

· You will gain experience and exposure, and in some cases, job-related training.

You will have a chance to deepen your learning about a job or occupation so that you can be sure it is the right fit for your career.
You will be introduced to a variety of businesses where you can form valuable networking relationships.
If you prove your value, you may be well-positioned to be converted to a permanent position.
It beats job searching and unemployment!

Downside for employees:

Lack of Health Insurance is the major objection. As a temp you are most likely not covered by employer health insurance. The Affordable Care Act should relieve some of this since it is now possible in many states to purchase more reasonably priced health insurance.
Lack of pension benefits. 401-k plans were originally meant as a supplement to corporate pension plans, but companies quickly jumped on these plans as a substitute rather than a supplement. So, since the era of Reaganomics, pension programs have been eroded. As an independent contractor you will have to plan carefully for your retirement.
Being an outsider. As a “temp” you may be treated differently than permanent employees. If being a solid part of a team is one of your strong values, this may be harder to satisfy as a temp.
No paid vacation or sick leave. Psychologically, it is harder to take a day off when you are not being paid.
Uncertain income. Since the work is temporary, it is hard to predict exactly how much you will make in a given year. This is unsettling to some people.