Cost Savings

• Management may find the use of contingent employees essential to their bottom line. Having employees available only during the time they are actually needed instead of maintaining them on a payroll permanently can be very cost effective. Many contingent employees receive their health and life insurance benefits from the temporary employment provider while some, such as freelancers, are responsible for their own. Using contingent employees also protects the positions of a company's base staff; when cuts or layoffs occur, the contingent employees are the obvious choice.
  
  

Specialization

• Management can hire specific contingent employees who are well-trained in a specialty for as long as a project requires their assistance. These employees may be needed to solve a short-term problem or to carry a team through a certain phase of a project. There may not be enough work to keep this individual employed permanently, but having her available to ease the company through a busy period or an intricate and detailed portion of a work project can be highly beneficial to a manager who lacks the number of employees or skill levels needed in his own group of core employees.
  
  

Training

• Orientating contigent employees can be time consuming and repetitive.Hemera Technologies/PhotoObjects.net/Getty Images
  
  Management may find the hiring of contingent employees to be sometimes difficult to incorporate in a project team or department. These employees need to be trained on the physical structure of the company, the chain of command, the specifics of the job and the exact role they will be playing for the minimal time they are employed. This can be extremely time consuming and repetitious for management if contingent employees are used on a regular basis.
  
  

Loyalty

• Staff members may have strained work relationships with contigent workers.Jupiterimages/Photos.com/Getty Images
  
  Contingent employees who have no loyalty to the company may have difficulty conforming to the rules and regulations of the business and the social structure of the business, resulting in conflict and lower employee morale among other staff members. Contingent employees are also less likely to "go the extra mile" or come up with innovative ideas for company growth. Regular employees may resent their presence and have difficulty collaborating with them, resulting in a possible slowing in project completion or decreased production.