Compensation and Benefit Issues of Contingent Workers

Compensation and Benefit Issues of Contingent Workers
Contingent workers play key roles in helping organizations in meeting
organization needs and acting as a knowledge resource for the
organizations they serve. However, research shows that there is a
significant difference in treatment between them and standard workers
(Zimmerman, Gavrilova & Cullum, 2013). These differences exist in terms
of training and development, pay for performance, and on-boarding. This
paper will address the compensation and benefit issues associated with
part-time, temporary independent workers, and flexible of telecommuting
Although these categories of workers (including part-time, temporary
independent workers, and flexible of telecommuting workers) play varying
roles in their organizations, they are generally classified as
non-standard workers or contingent worker and undergo more or less
challenges in terms of payments and other forms of treatment. The
general perception of the difference between standard workers and
contingent workers affects their relationships significantly. According
to Zimmerman, Gavrilova & Cullum (2013) underpayment and lack of
consideration of contingent workers in staff development programs
affects knowledge sharing process within the organization, reduces
organizational citizenship behavior, and imparts the perception of job
security threats. In addition, research indicated that the onboard
services conducted to introduce new standard workers into the
expectations and culture of the organization was not offered for
contingent workers. Moreover, the pay for performance analysis indicated
that contingent workers received an average of 60 % less pay for the
same job done by a standard worker. The researcher also identified that
staff development programs were reserved for the standard workers only.
In conclusion, the existing difference in treatment of contingent and
standard workers is a major drawback in organizational performance. This
difference results in a negative relationship between the two categories
of workers especially in terms of knowledge sharing. Differential
treatment occurs in terms of the onboard process, pay for performance,
and staff training and development.
Zimmerman, T., Gavrilova, M., & Cullum, P. (2013). Rethinking human
resource strategies: A shift in the treatment of contingent workers.
International Journal of Business and Management, 8 (7), 28-34.

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