Summarized by J. T. P. Yao, 9/3/00>

Contract or contingent workers once went by a less formal name: temporary workers. And still, when most people think of such employees, it calls to mind secretaries or day laborers, who fill in at a company for a period of a few days. But increasingly in the new economy, technology and computerization allow firms to staff more precisely, depending on their immediate needs. … The use of contract workers has grown fivefold since the 1980's, according to the U.S. Department of Labor. … Include part-timers, and the number of 'nonstandard' employees in the economy rises to about 26 percent of the workforce."

Increasingly, engineering educators are making students aware of the realities of the new workforce. … One of the key aspects of the ABET 2000 criteria is to produce graduates with more than just technical skills. … Last year, 70 percent of business surveyed by the American Management Association reported having replaced some permanent workers with temps. Roughly two thirds said they planned to increase contingent staffing in the next five years."

"On the surface, contract employment seems like a win-win situation for everyone involved. … Workers gain flexibility and freedom they may not otherwise have as regular staff and get higher salaries [usually 15 to 20 percent higher] … Of course these advantages are balanced by the ever-present uncertainty of temporary work. These include the possibility of being released at any moment, not having the same access to promotions as full-time workers, and missing out on some of the new economy's employment perks, like stock options."

"The salaries can be an alluring enticement to contract work. … Another advantage for contractors is the chance to pick up different skills while doing a number of different jobs. … For companies, the choice to hire full-time or contingent workers is an economic one depending mostly on whether the business is cyclical, like oil and gas, or more steady. …"

Formal benefits can also be lacking. According to the Department of Labor, only one in five contingent workers have health insurance. … Only 20 percent of contingent workers get employer-provided pensions compared with 50 percent of full-timers. In some cases, the higher salary can offset these disadvantages, but more often than not temp agencies that place contract workers have little pressure to match benefits of a full employee."

Both engineers, companies, and labor market analysts believe that the trend toward more flexible staffing is heading upward. … With flexible employment, firms can hire and fire on an as-needed basis. These trends will have profound implications for engineering down the road. ..."

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