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What is a Contingent Workforce?

Post by TCWGlobal
April 28, 2023
What is a Contingent Workforce?

Let’s face it, the business environment is rapidly changing, and with the constant changes in the economy, businesses are increasingly relying on contingent workers to meet their staffing needs. Have you ever wondered what is a “contingent worker” and why employers hire them constantly?

A contingent worker is a type of worker who is hired on a project-by-project basis. There are many benefits to using a contingent worker like increased flexibility and cost savings. We’re going to dive deeper and explore the definition of a contingent workforce, the benefits, and challenges of using contingent workers, and best practices for managing a contingent workforce.

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What is a Contingent Workforce?

As we mentioned before, a contingent workforce is a group of workers who are hired on a temporary or contract basis rather than being employed directly by the organization.

This category includes freelancers, consultants, temporary workers, and independent contractors. Contingent workers are hired to provide specific services or expertise, often for a defined period of time or until a specific project is completed.

For instance, imagine you need to hire someone to paint your house. Realistically, you don’t need to hire someone full-time to get the job done. Instead, you hire them to fulfill a specific task for a temporary basis.

Benefits of a Contingent Workforce

  1. Flexibility: Contingent workers can be hired for specific projects or periods of time, providing organizations with the flexibility to scale their workforce up or down as needed. If you need to keep up with your organization’s growth, contingent workers are the answer to your problems.
  2. Cost Savings: Hiring contingent workers can be more cost-effective than hiring full-time workers, as organizations don't have to pay for benefits, vacation time, or other overhead costs.
  3. Access to Specialized Skills: Contingent workers are often hired for their specialized skills and expertise, which may not be available in-house. What this means is that there is a greater talent pool. Companies can hire from anywhere in the world without sacrificing expertise.
  4. Reduced Risk: Because contingent workers are not direct employees, organizations may face fewer legal and regulatory risks associated with employment.

Challenges of a Contingent Workforce

While there are many benefits to using a contingent workforce, there are also some challenges to consider:

  1. Management: Managing a contingent workforce can be more complex than managing a traditional workforce, as organizations may need to work with multiple vendors and contractors (that’s why an EOR is the answer to all your problems).
  2. Integration: Integrating contingent workers into an organization's culture and workflows can be challenging, as they may have different work styles and priorities.
  3. Legal and Regulatory Compliance: Organizations that hire contingent workers must comply with a variety of legal and regulatory requirements, including tax laws, employment laws, and data privacy regulations (This will never be an issue if you’re working with an EOR).
  4. Communication: This can be more challenging with a contingent workforce, as they may not be physically located in the same place or working during the same hours as other workers.

Our Solution: Work with an Employer of Record (EOR)

Partnering with an EOR can significantly reduce the challenges of managing a contingent workforce. An EOR will handle the administrative and legal aspects of hiring and payrolling workers, and on top of that, they’ll ensure your company is in compliance with tax and employment laws.

The right EOR will help integrate contingent workers into your organization's culture and workflows by providing training and support. If you work with an EOR like TCWGlobal, you can rest assured that we’ll take care of your workers just as well as we take care of our own. From our charitable match program where we match all donations our workers make to charitable organizations to our pet adoption reimbursements, our goal is to make our worker’s experience the best it can be.  

An EOR is here to make your life easy. Communication can be streamlined through a centralized point of contact, making it easier to manage a contingent workforce that may not be physically located in the same place or working during the same hours as other workers. By working with an EOR, organizations can fully take advantage of the benefits of a contingent workforce while minimizing the challenges that may come with it.

If you’d like to learn more about the benefits of working with an EOR, we got the answers you need. At TCWGlobal, we pride ourselves for providing the best old-fashioned customer service. We are dedicated to our clients and committed to making sure they are always taken care of. Our clients' happiness is the ultimate measure of our success, and we strive to provide the best service every day.

This is what some of our clients had to say about our services:

“Rosa has been a great resource and partner as I've hired multiple contractors in the recent past. She's always willing to answer questions and makes the whole process super smooth. She is AWESOME!”

Day in and day out, Valerie continues to show her customer first approach by being so responsive and easy to work with her ever-calming demeanor - especially when there are issues that arise. She doesn't have an ego or hang-ups about rolling up her sleeve and having the difficult task of finding resolutions. Her speed with which she responds and her follow-through are just spectacular. She is truly a great partner and I have been so happy that she became our full-time point of contact.”

Best Practices for Managing a Contingent Workforce

If you want to manage your contingent workforce like a pro, here are some tips we’ve learned after being in the business for over a decade:

  1. Clearly Define Roles and Responsibilities: Clearly defining the roles and responsibilities of contingent workers can help ensure that they understand their tasks and deliverables. What this boils down to is having clear communication with your workers.
  2. Provide Adequate Training and Onboarding: Providing adequate training and onboarding can help integrate contingent workers into an organization's culture and workflows. An EOR can facilitate this process and save you time and money. At TCW, we take care of the onboarding and offboarding process so you don’t have to.
  3. Establish Communication Channels: There’s nothing better than being in constant alignment with your workforce, and that’s one of our values as a company. By establishing clear communication channels, you can ensure that you and your workers are on the same page and can work in harmony.
  4. Ensure Compliance: Ensuring compliance with legal and regulatory requirements is critical when hiring contingent workers. Organizations should work closely with legal and HR professionals to ensure that they are meeting all requirements. An EOR helps mitigate risk by keeping companies in compliance with local laws and regulations. (You don’t want to miss this step, trust us!)
  5. Evaluate Performance: Evaluating the performance of contingent workers can help ensure that they are meeting expectations and delivering high-quality work. Plus, when workers feel appreciated, they become more productive.


A contingent workforce can provide organizations with many benefits, including flexibility, cost savings, and access to specialized skills. However, managing a contingent workforce can also be challenging, requiring organizations to carefully consider legal and regulatory compliance, communication, and integration. By following best practices for managing a contingent workforce and working with an EOR, organizations can effectively leverage the benefits of contingent workers while minimizing the challenges and staying compliant.

If you’re ready to take your business to the next level, give us a call at 858-810-3000 or email us at

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Post by TCWGlobal
April 28, 2023