Advantages Disadvantages of Standard & Contingent Employees
K.Narayana Moorthy, HR Consultant, India
A contingent group of employees
is one with people working for an organization on a non-permanent basis. The use of contingent 'employees' is an organizational choice/strategy.
Advantages of contingent employees are:
- Flexility in the use or number of employees and resources;
- Saving costs and taxes; and
- Savings in long-term compensation costs.
Disadvantages of contingent employees are:
- Lack of loyalty of this group to the organization;
- Their training costs; and
- Potential disturbance of the organization's core morale and culture.
have a fixed and continuous employment; payment of wages; maintaining records; hours of work; minimum wage; equal pay for equal work; benefits plan; and leaves with costs.
Advantages of standard employees are:
- Manufacturing vast quantities to keep costs down;
- Safety & quality testing is easier; and
- Setting up mass production is easier.
Disadvantages of standard employees are:
- The contract binds employees and organizations;
- Special obligations to deal with them fairly;
- Legal responsibilities.