Businesses have dramatically increased their use of contingent workers over the past decade as they struggle with rising labor costs and the need for a workforce that can quickly adapt to market conditions.
Working on fixed-term contracts is also on the increase. The explosion in independent contractors, who now make up more than 10 per cent of workers, and the number of people in non-permanent jobs, is about 40 per cent of the workforce. A report by CSIRO, Tomorrow’s Digitally Enabled Workforce, says that our workforce participation has declined for almost a decade. Job seekers are discouraged by work casualisation, and the increasing potential for technological unemployment
How well the human resources function manages the workforce and its
composition in the face of changing employment relationships (i.e. increasing use of contingent labour) will determine how well the organisation is able to maintain a productive and engaged workforce. What are the issues, benefits and challenges for the human resources function and the organisation in managing contingent workers? Consider both the employer and employee perspectives of the relationship.
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