Question

Which of the following is a reason for employers to choose to engage contingent workers?

a) Enhanced job security
b) Increased long-term commitment
c) Greater workforce flexibility
d) Reduced labor costs

Answer 1

Greater workforce flexibility is why employers might engage contingent workers, as it allows them to adapt to workload changes and assess workers on a temporary basis, which also helps reduce frictional unemployment.

Step-by-step explanation:

The question you've asked is about the reasons employers might choose to engage contingent workers. Among the options provided, the correct answer is c) Greater workforce flexibility. Employers hire contingent workers, such as those from temp agencies, to adapt more easily to workload fluctuations. This allows them to bring in additional help when needed without committing to the long-term costs associated with permanent hires. Temporary staffing can be a win-win situation, providing jobs for individuals while they seek permanent employment and giving employers a chance to evaluate workers on a trial basis. The growth of the temp industry has also been linked to a reduction in the natural rate of unemployment by helping to reduce frictional unemployment, which occurs when workers are between jobs.