Today’s workforce isn’t built to sit still. Deadlines move faster, tech evolves overnight, and teams stretch thin trying to keep up. The result? A world powered by contingent work.
If you’ve ever brought on a contractor, a freelancer, or a temp to hit a deadline, you’ve used contingent labor. Contingent work has become the quiet engine behind startup agility and enterprise scale.
Ahead, we break down what the term means and why contingent talent drives the digital economy.
What is a contingent worker?
A contingent worker is someone who contributes to a company without being part of its full-time staff. This individual might be on a short-term contract, hired for a project, or working through an agency. Contingent workers may not be on payroll for the long haul, but they’re essential when you need high-impact results fast.
Think of them as the specialists who drop in, solve problems, and move on.
Contingent work vs full-time employment
Full-time employees are the foundation. Full-time workers get salaries, benefits, and performance reviews. Contingent workers are the flex. They jump in when the roadmap shifts, or when your in-house team hits capacity.
The difference is about structure rather than value. Full-time work is built around continuity. Contingent work is built around speed and precision.
Types of contingent workers
- Freelancers and independent contractors. These self-directed professionals deliver expertise on demand. Examples include developers, designers, copywriters, and data analysts who work independently with multiple clients.
- Temporary workers. So-called "temps" are usually hired through staffing agencies to handle workload spikes, employee vacations, or short-term absences.
- Consultants. These experts offer specialized knowledge and guidance to help organizations make informed business and technical decisions.
- Gig workers. Task-based workers take short-term jobs through apps or marketplaces. Examples include drivers, delivery couriers, and virtual assistants.
Why companies use contingent workers
Companies use contingent talent for the same reason they use cloud infrastructure or AI copilots: because flexibility scales better than rigidity. We take a closer look at the different reasons companies choose contingent work below:
Cost efficiency and budget flexibility
Contingent workers give companies the flexibility to scale resources as needs change, reducing fixed costs while maintaining quality output.
Access to specialized skills
From cybersecurity engineers to UX researchers fluent in generative AI, contingent talent unlocks niche expertise without the need for months of recruiting.
Faster hiring and scalability
In traditional hiring cycles, teams wait. With contingent hiring, they start next week. Contingent work is an operational superpower for companies that need to move fast.
See how Howdy helped Metalsmart scale their team in weeks.
Reduced long-term commitment
When markets shift, businesses can pivot quickly without overhauling entire departments. This flexibility keeps operations efficient.
Challenges of contingent workforces
However, flexibility comes with its own set of hurdles. The contingent model requires discipline, particularly in areas like compliance, security, and integration. Next up, we explore some of the main challenges of relying on a contingent workforce:
Compliance and worker classification
Misclassifying a worker is a legal risk that can trigger audits and fines. Each country (and sometimes each state) has its own classification rules.
Security and data protection
Contingent workers often need access to internal tools, data, and repositories. Without clear security protocols, this access can become a weak point.
Training and integration limitations
Because contingent workers come and go, companies often invest less in onboarding and culture. This can limit collaboration, especially across time zones or teams.
Communication and culture gaps
When half your Slack channel turns over every quarter, cohesion becomes a strategy problem. Smart teams close the gap with shared documentation, async tools, and nearshore talent that actually overlaps their workday.
Contingent worker vs contractor vs freelancer
These roles overlap, but they aren’t identical. We break down key differences between contingent workers, contractors, and freelancers below:
Key differences
- Contingent worker is the umbrella term that covers contractors, temps, and freelancers.
- Contractors usually work for one client at a time on a specific deliverable.
- Freelancers juggle multiple clients and projects simultaneously.
When to hire each one
- Freelancer: For creative or technical work that benefits from variety and speed.
- Contractor: For defined, high-impact projects that require specialized skill sets.
- Contingent team member: When you need an extra set of hands (or ten) for fast growth without red tape.
When should a business use contingent talent?
Contingent hiring reflects a shift toward agility, giving companies the freedom to scale talent as goals evolve. Here’s when it makes sense to bring contingent professionals into your workforce:
Short-term or project-based needs
Launches, migrations, and product sprints all benefit from short-term expertise.
Skills not required in-house long term
Not every skill needs a permanent seat on your org chart. Bring in contingent talent for the jobs that have a clear end date.
Rapid scaling needs
When your company’s growth outpaces your recruiting team, contingent talent fills the gap.
For companies scaling quickly, finding reliable talent across borders can be complex. Howdy.com simplifies that process. We help companies build global teams that operate seamlessly across time zones. Our talent network connects you with professionals who deliver exceptional work, collaborate in real time, and integrate easily into your organization. Book a demo.
Howdy’s approach to contingent talent
Howdy.com helps companies move beyond borders by connecting them with top-tier talent across Latin America and beyond. Our platform streamlines hiring, payroll, and team integration, turning contingent hiring into a long-term growth strategy.
Global teams outperform when they’re aligned, empowered, and supported. In addition to connecting you with great talent, we provide the infrastructure, local support, and cultural alignment to help your distributed team thrive.
Real-world results: Contingent talent in action
Companies across industries have transformed their operations by partnering with Howdy. Here are a few examples:
- Earnest (Fintech, US)
Built a Latin American extension of its engineering team while improving retention and productivity.- 15–20% reduction in costs
- 20–30% increase in take-home pay for local teammates
- Created a cohesive, high-performing team after consolidating multiple agencies and freelancers.
- Truepill (Healthcare, US)
Rapidly scaled its engineering team to support a major software rebuild.- 3× faster onboarding
- 25% increase in engineering output
- 50% cost savings compared to traditional hiring while maintaining culture and quality.
- Workrise (Energy Tech, US)
Built a high-retention, cross-functional engineering team with exceptional collaboration.- 17+ Howdy engineers integrated across teams
- Lowest churn rate among all contractor hires
- Improved coordination and communication across departments.
The Howdy.com advantage
Across our global network, Howdy teams maintain a 98% retention rate — far exceeding industry averages — and clients typically onboard new hires in as little as four to six weeks. Our hybrid model blends the speed of contingent hiring with the stability of long-term team building.
From contingent to strategic
Many companies start with contingent hires and evolve into enduring global partnerships. With Howdy’s platform and on-the-ground support network, contingent talent becomes the foundation for sustained growth and innovation.
The result is a distributed team that feels unified, focused, and ready to scale.
Conclusion
Contingent workers have become a core part of how global businesses operate and grow. Today, contingent hiring focuses on speed, access, and the ability to build a workforce that scales across borders.
With Howdy.com, you can expand your reach, connect with top talent, and grow stronger teams that deliver results from around the world.
Book a demo to see how Howdy helps you build global teams ready for what’s next.