Compensation and Benefits for Contingent Workers

Table of Contents

The paper discusses the compensation and benefits issues associated with:

Part-time workers

For many years, there have been numerous benefit and compensation grievances that have been presented by part-time workers. Despite this group of workers being used by most of the employers, it has been identified that benefits given to this group compared to those given to full-time staff are minimal. For instance, it becomes difficult for employers to offer part-time benefits such as life insurance. The main reason that leads to this group of staff not being provided with life insurance is that they are not in an organization to stay. After working for a certain period, they shift to a different company. This makes employers find it costly to offer them life insurance benefits (Staff Writer, 2009, para. 1-3). On matters of compensation, part-time workers have for many years fought to see their wages increased. The amount of wages given to them is low compared to that given to full-time workers. Most of the part-time staff are employed in fields that require limited skills. This leads to them being exploited by employers.

Temporary staffs

Most organizations contract temporary staff due to the low cost associated with them. This group of staff has limited compensation with the employer not being obliged to cater for the medical cover of these staff. With the available labor laws not restricting employers from getting permanent employees, compensation problems arise when an employer embarks on the same (Erickcek, Houseman & Kalleberg, 2002, para. 2-4). Temporally employees are given meager wages while the permanent staff is given high wages. In addition, they are denied the privilege of getting medical cover as well as being paid when they go on holidays like the permanent employees.

Independent workers

This is the group of employees that have for many years been deprived its compensatory rights. As this group of staff is independent, employers decline to offer them insurance coverage. Unlike other permanent employees, employers in most cases deny knowing the staff when incidences of accidents or injuries occur when the employee is on duty. This staff is compelled to seek employment connection with the people who have been given the contract. In most cases, the general contractors decline to compensate the staff leading to a tug of war between them (Ryan, 2005, para. 1).

Telecommuting workers

Technological advancements have made it possible for staff to work from home. An employee doesn’t need to travel to the office so that to complete his or her task. This has not come without problems when it comes to issues on compensation and benefits of these staff. As staffs work from home, they are exempted from benefits such as transport allowances. One of the major problems that have emerged is the establishment of compensation insurance. The law states clearly that if a telecommuter gets injured when attending to an employer’s duties, it is his or her right to be compensated by the employer (Paige, 2006, para. 1-3). However, this does not generally happen with most employers requiring the staff to prove that they were attending to organizational duties. With most staff not being able to present concrete evidence, they end up not being compensated.

Effects of making changes

As most organizations are embarking on contingent workers as their main source of labor, numerous changes are expected to occur in their organizational compensation plans. For instance, most of the compensation and benefits that have been being awarded to permanent employees are going to be eliminated from the compensation plan. These are benefits such as payments made for sick leaves, vacation, and holidays. Despite contingent workers being given these benefits, their mode of payment differs from that of full-time workers.

Reference List

Erickcek, G., Houseman, S. & Kalleberg, A. (2002). The effects of temporary services and contracting out on low-skilled workers: evidence from auto suppliers, hospitals, and public schools. Web.

Paige, P. (2006). The rise in telecommuting prompts concerns over workers-compensation insurance. Web.

Ryan, L. (2005). Independent contractor or employee? Web.

Staff Writer. (2009). Web.

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