What Is A Contingent Worker? Definition, Pros And Cons

Christiana Jolaoso-Oloyede writes for media publications, B2B brands and nonprofits. Using her research, analytical and writing skills from her training as a lawyer, she focuses on garnering accurate information from appropriate sources to recommend.

Christiana Jolaoso Small Business and Tech Writer

Christiana Jolaoso-Oloyede writes for media publications, B2B brands and nonprofits. Using her research, analytical and writing skills from her training as a lawyer, she focuses on garnering accurate information from appropriate sources to recommend.

Written By Christiana Jolaoso Small Business and Tech Writer

Christiana Jolaoso-Oloyede writes for media publications, B2B brands and nonprofits. Using her research, analytical and writing skills from her training as a lawyer, she focuses on garnering accurate information from appropriate sources to recommend.

Christiana Jolaoso Small Business and Tech Writer

Christiana Jolaoso-Oloyede writes for media publications, B2B brands and nonprofits. Using her research, analytical and writing skills from her training as a lawyer, she focuses on garnering accurate information from appropriate sources to recommend.

Small Business and Tech Writer Kelly Main Staff Reviewer

Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.

Kelly Main Staff Reviewer

Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.

Kelly Main Staff Reviewer

Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.

Kelly Main Staff Reviewer

Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.

Updated: May 29, 2024, 11:05pm

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What Is A Contingent Worker? Definition, Pros And Cons

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Table of Contents

As the business world becomes more competitive, organizations seek more innovative ways to increase productivity without much cost. One of them is engaging contingent workers to perform specific tasks required to meet their goals.

Read on to find out what a contingent worker is, how they differ from company employees and the benefits and drawbacks of using contingent workers in your organization.

A contingent worker is someone hired by an organization to perform specific tasks. Also called freelancers, independent contractors or 1099 workers, contingent workers are experts in their fields, lending their skills to an organization on a nonpermanent basis.

Contingent workers are hired on a project-by-project basis, which implies that they are only called to work when there’s a project. A business owner is not required to offer continuous work to them, except if there’s another project that requires their help.

A contingent worker is in charge of their work schedule, how to carry out tasks and where to carry out given tasks. Therefore, they may choose to work on-site or remotely, and can even choose work days or hours. All they need to do is get their tasks completed at an agreed-upon time.

Organizations do not add contingent workers to their payroll. Also, they do not pay them salaries or provide benefits such as health insurance and retirement plans as they would an employee.

Contingent Workers vs. Traditional Employees

Both contingent and traditional workers can help you perform tasks required to grow your business. They are skilled workers who will execute their roles to help you meet set goals, and you are required to pay them for their services.

Contingent workers will get the job done without the need to take on the responsibilities that accompany hiring full-time employees. However, you need to know the distinctions between a contingent worker and a traditional employee. Why? Misclassifying workers puts you at risk of penalties for noncompliance with the Internal Revenue Service (IRS).