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Use of Contingency Workers Essay Sample

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Use of Contingency Workers Essay Sample

 Abstract

            Since the industrial revolution, companies have resorted to alternative employees.  Contingent workers are temporary or part-time workers who work under a contract on specific projects.  Employers turn to contingent workers to avoid over staffing in times of a downturn.  Third party staffing agencies have become popular in this era when most companies experience a rise and fall in the economy and this has saved most employers from spending too much on retrenching workers.

            Professional employment organizations are basically tools used by companies for the purpose of expansion in their areas of operation with the aim of increasing the profitability in the long term (Baker, 2004, pp. 5).  There are several ways through which recruitment of employees can be conducted each of which has inherent characteristics due to their underlying structure. Furthermore, the success of any recruitment process depends on how the process is carried out, the prevailing industry conditions and other internal factors like the corporate culture of the company.

        Employers who intend to lease employees are advised to make use of the third party staffing organizations as it will enable them cut on costs and work in efficiency.  The leasing company takes sole responsibility over the employees benefits, salaries, vacation needs, taxation and claim-suits when the employee has issues with the employer.  The company is free from the hassle of conducting interviews and sourcing productive staff since the third party organizations handle that.

Benefits of third party staffing agents.

             Sometimes companies wish to increase their workforce but they do not want to deal with the difficulties associated with hiring and firing the employees.  In other words, the company needs staff, but does not need to deal with the work of the human resources department.  It will therefore employ an employment organization to handle the payroll, staffing, holiday schedules for the employees (Coyle, 2000, pp. 12) and this saves the company from unnecessary expenses.

            According to the introspection done on Air Wave Company, a third party staffing agent is necessary to help curb the high costs incurred by the company in the recruitment of its employees.  The company is likely to solve the issue of class- action suits by non-compliant contractors imposed on the company through third party staffing (Atkinson, 2004, 23)  This will ensure that the company saves on the costs.

            The global market and industry is increasingly featuring use of third party staffing organizations as a means of recruitment and reduced expenditure.  The manufacturing and financial sectors players, regardless of their nature, are adopting this concept, though the degree of the implementation varies from one corporation to another. This popularity has been attributed to the downsizing, cost cutting and strategic reasons.

            The Air Wave company is currently characterized by intense complains from the employees as they lack back office support (Coyle, 2000, pp. 12) as a result of  this, workers complain of unemployment, work compensation related issues and liability claims.  This can be resolved if only the company employs the services of third party staffing who will be responsible for the back office activities.

Executive summary

            Currently, Air Waves Company has employed workers who have claims for more incentives.  It can reduce the costs when contingent workers are incorporated in various departments.  Taxation has become an issue for the company and as a result, the directors are in reverie, it is easier to use temporary workers to enjoy hiring tax- advantaged employees.  High costs stemming from insurance services given to employees can be eliminated by use of the staffing agents.

          The greatest benefit to companies who choose to use a staff leasing company is that they may not have to employ and have several departments in their company.  Air Wave will not have to worry about having a human resources department who take care of scheduling, benefits and employee complaints.  They will need a small accounting department because they do not have a payroll sector to deal with in their accounting department.  The rest of the accounting tasks such as taxes and bookkeeping can be minimized.

     The nature of air wave Inc. requires intense use of the third party staffing organization to solve its crisis.  The industry is highly competitive with a big number of players and therefore a good strategy is core to the growth and sustainability of the business as it exploits the opportunity.  This strategy document has been development under consideration of the industry, market and the operational environment should be placed effectively but it should relieve the founders of the company the time to handle various employees in different states.  This will curb high costs and expenditure.

Financial benefits of using a staffing agent.

        When Air Wave will decide to work with a professional employment organization, they will be saved the hassle of conducting employee before qualified personnel are found.  The employment organization looks for potential candidates and when interviews are held, they are with potential candidates which saves the employer a lot of time (Reese, 2008, para. 19). The professional employment organization will have sole responsibility of handling Air Waves pay roll, taxation, benefits and insurance services for the employee saving them from excess expenditure.               

 Departments to be incorporated by Air Waves Inc.

            Air Waves Inc. needs not have a lot of departments since if it uses the third party staffing scheme then most of its work will be handled by the professional employment scheme.  The human resources department is not required by this company.  The accounting department needs to have small offices to handle taxation and other accounting related work but not employee related activities.  Air Waves company will require a technical staff to handle the information technology department, they need to avoid the human resources and payroll department, regional sales representatives should be handled by the third party staffing company.  Customer care department is necessary to direct the company’s questions. The company must develop a mechanism that will ensure diversification so as to gain a competitive advantage over others in the industry.  This will ensure the organization cuts down on costs and diversifies its operations and thus lead to a larger market share in an industry that features specialization.  This process will require assessment of the possible areas of diversification and research department should be established.

Conclusion.

            Contingent workers are of vital important for any organization that wants to save on costs and maximize profits.  Sometimes companies need to hire such employees but they do not want to get involved in the human resource affiliated responsibilities and therefore it is important that such organizations seek a professional employment organization to lease the employees.  The sole responsibility of the staffing agent will therefore to handle employee related issues for company.  This will be a merit for the company will save enough money.

             Currently, Air Waves Company has employed workers who have claims for more incentives.  It can reduce the costs when contingent workers are incorporated in various departments.  Taxation has become an issue for the company and as a result, the directors are in reverie, it is easier to use temporary workers to enjoy hiring tax- advantaged employees.  High costs stemming from insurance services given to employees can be eliminated by use of the staffing agents.

Reference List

Atkinson, B, (2004). Taking on the big boys.  Published by feminist press. New York

Coyle, B. (2000). Mergers and Acquisitions: Corporate Finance.  London. Professional

        Publishing.

Stinemetz, D. (2003). Shadow work force. Published by Michigan States University.  Michigan.

Gaugha, P. (2002).  Labor and capital in the age of liberalization.  Published by Rowman and

     Little field.

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