Describe the advantages and disadvantages of using contingent workers
Advantages of Using Contingent Workers
When a firm employs a contingent worker, it usually does not have to provide benefits such as insurance, paid time-off, and contributions to a retirement plan. A company can easily adjust the number of contingent workers it uses to stay consistent with its business needs; a company can release contingent workers when they are no longer needed. An organization usually cannot do the same with full-time employees without creating a great deal of ill will and negatively impacting employee morale. Moreover, because many contingent workers are already specialists in a particular task, the firm does not customarily incur training costs. Therefore, the use of contingent workers enables the firm to meet its staffing needs more efficiently, lower its labor costs, and respond more quickly to changing market conditions.
Disadvantages of Using Contingent Workers
On the downside, contingent workers may not feel a strong connection to the company for whom they are working. This can result in a low commitment to the company and its projects, along with a high turnover rate. Temporary workers may already have the necessary technical training for a temporary job. However, while working for a particular company, many contingent workers gain additional skills and knowledge, which are lost to the company when the workers depart at the project's completion.
You might also like to view...
The time of the note consists of the days or months from the date of issue to the date of the note's maturity
a. True b. False Indicate whether the statement is true or false
The accuracy of the statement of cash flows can be verified by computing the change in the balance of the cash and cash equivalents
a. True b. False Indicate whether the statement is true or false
According to Moore's Law, the ________.
A. price of an integrated chip reduces once in 18 months B. performance of each transistor on a square inch of an integrated chip doubles every year C. density of a transistor decreases every year D. rate of innovation increases exponentially E. number of transistors per square inch on an integrated chip doubles every 18 months
Inventory Returns Estimated is a current asset account used in a period-end adjusting entry to reflect the inventory estimated to be returned in the future.
Answer the following statement true (T) or false (F)