Differing HR Practices for Standard and Contingent Employees
A common way to differentiate the workforce is by making a distinction between standard and contingent employees:
- Standard Employees
are those employees who work for an organization on a permanent basis. They have established an ongoing relationship with their employer.
- Contingent Employees
perform a job on a temporary basis. They perform jobs that are based on a contract of limited duration.
Besides the obvious differences in duration of the relationship with their employers, the HR practices induced to manage these categories of employees also differ:
- Standard workforce HR practices
: HR practices for the standard of permanent workforce are “high-road” practices. These HR policies are characterized by strong employee commitment and large investments. High-road HR investments
include monetary incentives, investments in employee training and empowerment, and better job security.
- Contingent workforce HR practices
: because contingent employees have a weaker bond with employers, as compared to the standard workforce, fewer investments are dedicated towards these employees. Those so-called low-road HR investments
are characterized by weaker employee commitment.
Source: Stirpe, L., Bonache, J. and A. Revilla (2014) “Differentiating the Workforce: The Performance Effects of Using Contingent Labor in a Context of High-performance Work Systems” Journal of Business Research Vol. 67 Iss. 7. Pp. 1334-1341