Contingent staffing refers to hiring workers on a temporary, freelance, or contract basis, rather than as permanent employees. These workers, often called contingent workers, are brought in to meet short-term business needs, fill skill gaps, or support fluctuating workloads.

For small business owners, contingent staffing can be a flexible, cost-effective way to manage labor, especially during seasonal spikes, staff absences, or business expansions. It allows you to maintain productivity without the long-term obligations of full-time employment.

With workforce management tools like Homebase, you can schedule, track, and communicate with both contingent and regular employees in one place—making it easier to stay organized and compliant.

Types of contingent workers

Contingent staffing includes a wide range of worker types. Understanding the distinctions can help you choose the right fit for your business.

• Temporary employees – Hired for a specific short-term project or time period, often through a staffing agency
• Freelancers or independent contractors – Self-employed individuals who provide services without being on payroll
• Seasonal workers – Brought on during busy periods (e.g., holidays, summer, special events)
• On-call staff – Scheduled as needed, often with little notice
• Gig workers – Workers who take on tasks through apps or digital platforms

Benefits of contingent staffing for small businesses

Small businesses often face unpredictable staffing needs. Contingent staffing offers a number of practical advantages:

• Flexibility – Scale your workforce up or down based on demand
• Cost savings – Avoid long-term payroll, benefits, and tax obligations
• Speed – Fill roles quickly, especially for time-sensitive tasks
• Access to specialized skills – Bring in expertise for one-off projects or technical needs
• Reduced overtime costs – Prevent burnout and save money by using contingent workers instead of overloading your core team

Common use cases for contingent staffing

Contingent staffing can support nearly every industry. Here are some examples of how small businesses use it:

• Retail – Bring in seasonal workers for the holidays or back-to-school sales
• Restaurants – Hire servers or line cooks for events, peak weekends, or unexpected callouts
• Construction or trades – Use subcontractors for specialized tasks like plumbing or electrical work
• Healthcare – Supplement regular staff with traveling nurses or on-call technicians
• Administrative work – Hire temporary support for data entry, bookkeeping, or project coordination

Risks and challenges of contingent staffing

While contingent staffing can offer flexibility and savings, it also comes with some important considerations:

• Compliance – Misclassifying workers as contractors when they should be employees can result in penalties
• Lack of loyalty – Temporary workers may not be as invested in the business or its culture
• Training gaps – Short-term staff may need more direction or supervision
• Scheduling complexity – Managing multiple types of workers can be logistically challenging
• Knowledge loss – When contingent workers leave, they may take important information or skills with them

Best practices for managing contingent staff

If you're considering contingent staffing for your business, here are some tips for getting it right:

• Clarify roles and expectations – Set clear responsibilities and deadlines from the start
• Verify classification – Consult legal or HR professionals to ensure you're classifying workers correctly
• Use written agreements – Outline terms, timelines, and payment structures in a contract
• Integrate with your team – Include contingent workers in key communications and team updates
• Track hours and tasks – Use scheduling and time tracking software to stay organized
• Evaluate performance – Give feedback and decide whether you'd rehire them in the future

How Homebase supports contingent staffing

Homebase simplifies scheduling, time tracking, and team communication so small business owners can manage all types of workers—permanent and contingent—without added stress.

With Homebase, you can:

• Build and publish weekly or daily shift schedules
• Assign tasks to individual workers, including temporary hires
• Track hours worked and prevent missed punches
• Manage team communication with built-in messaging
• Set shift notes and reminders for expectations and key info
• Stay compliant with labor laws through digital recordkeeping

Explore Homebase Employee Scheduling to organize your workforce, adapt to staffing changes, and ensure everyone on your team—permanent or temporary—shows up and performs their best.