Use of ‘Contingent Workers’ Rising, Report Says

Work-force flexibility and downsizing have prompted increasing use of temporary and part-time employees, and many large firms expect that trend to continue, according to a survey released Sunday.

“Contingent workers”--temporary hires, part-timers, free-lancers and independent contractors--account for at least one-tenth of the work force at 21% of the 91 leading companies that responded to a survey by the Conference Board, a private research group in New York.

That’s almost double the 12% of respondents with that proportion in 1990, and 35% of the companies expect to reach that level by the end of the decade, the survey said.

A chief advantage to temporary and part-time hiring is the flexibility it affords in meeting seasonal or cyclical demand, 81% of the firms said.

“Companies that trim their regular work forces are likely to put restraints on hiring, but may still allow managers to purchase temporary and contract help to supplement staff and replace lost expertise,” said Helen Axel, a Conference Board official and author of a report on the survey.

The companies raised several concerns about letting temporary and part-time staffing levels rise too high, but no particular problem dominates the survey. Only two firms said the disadvantages outweigh the gains.

The top concern, cited by 30% of the companies, is a lack of skill and training among such workers. Other concerns include work quality, lack of commitment and disruptions because of turnover.

A disproportionate amount of the growth in temporary staffing is expected overseas, particularly Europe, where labor laws make it more difficult to lay off workers, Axel said.

“Contracting and other provisional forms of employment are commonplace in Europe,” she said.

Three-quarters of the companies said they use temps to perform clerical duties; 36% said they use contractors for a specific kind of expertise, the report says.