Imagine a world where every medical facility in the U.S. was adequately staffed to ensure the highest level of patient care. This may sound like a dream, but with contingent staffing, it may be possible.
Over 1.7 million people resigned from their healthcare jobs in 2022, according to a report by the U.S. Bureau of Labor Statistics (BLS). As the nursing crisis continues, health system leaders are using contingent staffing—also referred to as contingent labor—to fill the gaps.
Contingency staffing provides temporary staff to fill in for permanent staff. This may happen when permanent nursing staff calls out due to illness, family leave, or vacation, among other reasons.
When this happens, healthcare facilities can be left vulnerable. Contingency staffing lightens the burden for both facilities and permanent staff by providing relief and support, even during nursing shortages.
Here's everything you need to know about contingency staffing in nursing and how it's reshaping the industry.
What is a contingent workforce?
A contingent workforce is a strategy that helps organizations supplement staffing when the demand for labor wavers. The BLS defines contingent labor as "any job in which an individual does not have an explicit or implicit contract for long-term employment."
In healthcare, more and more leaders are choosing contingency staffing or per diem nurses to fill gaps in coverage. According to a report by Nursa:
- More than half (63 percent) of health system executives believe that with a larger pool of nurses, they could offer greater flexibility to staff.
- An overwhelming majority (93 percent) of health system leaders do not believe that being employed by a health system makes a nurse more valuable than working as an independent contractor.
In a nutshell, a contingent workforce is continuing to prove that it's a robust strategy that can tackle the nursing shortage head-on.
Why is contingent staffing a growing trend?
The demand for contingent workers has exploded, and so has the number of individuals working as independent contractors.
- According to Statista, in 2023, there were approximately 36.6 million independent workers in the United States.
- According to the BLS, around one-third of contingent workers were employed in the education and health services industry.
You have to consider the type of industry for a more specific definition of contingent workers. In healthcare, contingency staffing is the practice of having a pool of temporary workers available on demand.
Contingent staffing is a growing trend, particularly in the healthcare industry, because it is an effective solution for countering staffing shortages.
A contingent staffing talent pool can ensure proper nurse-to-patient ratios even when permanent staff calls out sick. Without the proper nurse-to-patient ratios, patient care can be compromised. In addition, facilities could find themselves with an overwhelmed nursing staff, leading to higher cases of fatigue and burnout.
Contingent labor can help nursing staffing managers meet the operational needs of their facility without risking further alienation from their existing full-time staff.
Pros and cons of contingent staffing
What is contingent workforce ideology, and how does it differ from traditional employment models?
A contingent employee can be considered an independent contractor who is hired on a contractual or project basis. This allows an organization to adapt to fluctuating staffing levels.
Here's a breakdown of the pros and cons of contingent staffing
Contingency staffing can be a great solution for industries such as healthcare and education, but it's not a one-size-fits-all strategy.
Pros of contingent staffing:
- Offers a flexible labor solution that benefits both the staff and staffing manager.
- Provides better cost-efficiency—lower administration costs, don’t pay benefits, etc.
- Requires less onboarding and training—reducing time and resources.
- Requires a lower initial investment compared to hiring a permanent staff employee.
- Offers a faster and more efficient response to urgent staffing needs.
- Access to an extensive talent pool of highly skilled workers.
Cons of contingent staffing:
- It may be challenging for contingent staff to integrate with permanent staff/full-time teams.
- Contingent employees bear responsibility for their own taxes and health insurance.
- Less control over candidate selection depending on company policies and rules.
- Contingent employees may be less invested or committed to their projects.
- Possible higher liability for hiring managers due to contract workers' lack of protections in the workplace (in some instances).
Contingent staffing can be an excellent fit for organizations that may struggle with oscillating staffing levels or are dealing with shortages.
Contingent workers vs. employees
Each facility will have varying policies regarding how they classify contingent workers versus employees. Below are the general differences between contingent workers and employees:
Contingent Workers
- Schedule: enjoy a more flexible schedule; sometimes, they can set their own hours
- Location: can work remotely or for several companies during the year
- Benefits: typically don’t receive the same benefits as permanent staff but may be offered other hire-on incentives
- Payment: usually paid on a per-project basis—sometimes with higher hourly rates
- Tax and liability: most likely classified as 1099 independent contract workers and responsible for paying their own taxes
Permanent Employees
- Schedule: have a fixed schedule that they are assigned long-term
- Location: works from one location and is employed by a single company
- Benefits: receives benefits and perks such as paid leave, health insurance, retirement plans, and bonuses
- Payment: receives a fixed salary, either monthly or bi-weekly—depending on the organization
- Tax and liability: most likely classified as a W2 employee, with tax withholdings such as income tax, Social Security, and Medicare
Read more: How to use Nursa in your own facility's staffing strategy
Types of Contingent Workers
The most common types of contingent workers are in fields such as retail, construction, hospitality, education, and healthcare. However, other industries may hire contingent workers for special projects during peak seasons. Types of contingent workers may fall under different classifications or names, such as:
- Independent contractors
- Seasonal workers
- Consultants
- Freelancers/gig workers
Per diem nursing is a type of contingent worker that a healthcare facility can utilize to fill in for gaps in coverage. These nurses are extremely valuable in ensuring that patients receive consistent care during staffing shortages.
When should you use contingent workers?
Contingent workers are generally hired on a contract, non-permanent, or per-project basis. These workers provide support and "cushion" during certain scenarios. An organization may choose to use contingent workers in the following cases:
To deal with major seasonal fluctuations
Retail or healthcare organizations can hire contingent workers to handle peak seasonal fluctuations, such as the holidays or flu season. Peak seasons often increase hospital admissions, and contingent workers can cover the sudden influx of patients.
Sudden changes in demand for labor
Contingent workers are also beneficial in filling in for permanent staff who are on vacation, sick, or maternity leave. In addition, if several staff members resign at one time, contingent workers can prevent disruptions in workflow and keep tasks moving forward.
Talent needed for short-term projects
Contingent workers can be useful when an organization needs a worker with specialized skills. In healthcare, per diem nurses with specialty licenses can provide expertise in areas such as oncology, pediatrics, or geriatric nursing. This can save a facility time and money by avoiding the need to hire a permanent nurse staff with a special range of skills.
Learn more about contingent staffing in the healthcare industry
The nursing staffing crisis isn't going anywhere—for now. Luckily, there are modern and innovative ways that healthcare facilities across the U.S. are meeting their staffing needs. These include health platforms and apps that allow nurses to pick up high-paying per diem shifts from all over the country.
With the help of Nursa, a growing per diem, contingent staffing marketplace, facilities can save time and money by connecting with verified local clinicians.
Sign up with Nursa today and get the coverage your facility needs by filling short-term staffing shifts quickly and easily.
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