On Demand Jobs - the New Reality?

Whatever word you choose to use, temporary, outsourced, contract, part-time, just-in-time labor, contingent workforce or on-demand jobs, these jobs have become the new reality. With personnel costs on the rise, companies continue to look for alternatives. Outsourcing doesn’t always mean sending certain functions to a remote location. It can mean hiring a person to come into the organization to work on a contract or temporary basis. These types of jobs provide benefits to both the employer and the contingent worker, but both must enter the relationship fully informed. For companies, an on-demand workforce provides an opportunity to focus on its core functions with greater flexibility and access to multi-level talent. Likewise, the contract employee can enjoy greater flexibility and freedom, but may be the first to be let go during the tough times (and the first hired back during the good times).

With high unemployment rates these days, companies have a pool of superstars to pick from for its contingent workforce. DeCenzo and Robbins define the contingent workforce as “the part-time, temporary, and contract workers used by organizations to fill peak staffing needs or perform work not done by core employees”. (DeCenzo & Robbins, 2007, p.16) More and more people are accepting these on-demand jobs as a means of getting back to work in some capacity. Therefore, companies have excellent access to a skilled professional workforce who can offer accounting, legal services, human resources, IT, recruiting, credit & collections, engineering, customer service, process creation and control, supply chain specialties, or special projects.

For companies, the on-demand jobs trend can have tremendous benefits, but should be entered into carefully. Contingent workers offer companies an opportunity to “kick the tires” before making a permanent hiring decision. If a project becomes a huge success, the company can then opt to permanently hire. There is no better way to see if someone will “fit” into the culture than having him/her try it. Keep in mind there is no guarantee that the contracted employee will want to forego his/her flexibility to become a permanent employee.

Confidentiality can be a concern. To be successful the contingent workforce must be trained on the business and in areas pertinent to completing their duties, which may include confidential issues. In these cases, consider performing background checks or having the contingent workforce sign documents such as non-compete agreements, confidentiality agreements and contingent workforce contracts.

Company culture should also be considered when hiring on-demand staff. Will the core staff properly allocate resources to help make their temporary counterparts a success? Training and communication are crucial to overcome objections. Like other staff, it is imperative that on-demand staff is managed with goals and timelines. On-demand staff may have other priorities and contracts, so establishing goals and timelines up-front will help everyone properly prioritize.

For on-demand employees, due diligence is a must and should be applied with the same vigor used when considering permanent jobs. Talents should be tangible and deliverable. The culture of the proposed client is important. Will the core employees embrace the relationship/project or reject it? Rebuffing office politics is vital. Being organized and able to hit the ground running are imperative. Excellent communication skills are essential. Being a fast learner and technologically competent will provide an edge over the competition. Understanding the risks involved with on-demand employment is crucial and can be off-set by the flexibility and freedom often inherent in these positions. Risks can include higher stress levels of working in a provider/client relationship versus a traditional employer/employee relationship. These jobs can also be isolating since the contingent workforce may be differentiated from core staffers.

If you are out of work and looking for an alternative to the same old grind, contract work may be an option. On-demand employment is here to stay; gone are the days of settling into one company after high school or college until retirement. Take advantage of this new trend and make it work for you and make it a win/win for everyone! For employers who are having difficulty filling certain jobs, try using a contingent workforce to get the job done. They can provide talent, better results and a less expensive solution to hiring. If both parties do their due diligence up-front, it can be a great working relationship for years to come.

If you enjoyed this article, you may find the following informative:

Conlin, M., Coy, P., Herbst, M. (2010, January 10). The Rise of the Permanent Temporary Workforce, www.msnbc.msn.com, Retrieved November 1, 2011 from http://www.msnbc.msn.com/id/34769831/ns/business-careers/t/rise-permanent-temporary-workforce/#.TrAM8ezr4oM


Goldsmith, M. , (2007, May 23). The Contingent Workforce, BusinessWeek.com, Retrieved November 1, 2011 from http://www.businessweek.com/careers/content/may2007/ca20070523_580432_page_2.htm

Lister, K. (2010, July 30). Making the Most of Freelance Talent, www.entrepreneur.com, Retrieved November 1, 2011 from http://www.entrepreneur.com/article/217195

References

DeCenzo, D.A. & Robbins, S.P. (2007). Fundamentals of Human Resource Management, Ninth Edition. Hoboken: John Wiley & Sons, Inc.