Today’s work landscape is different from the past, as borders have blurred, skillsets have merged, and there is a greater need for diversified talent. This is especially true now, as more companies are confident in hiring remote workers. That has led to the rise of independent contractors, such as temporary staff and gig workers. It’s assessed that the global gig economy will be worth USD 347 billion in 2021. There’s been a tremendous increase in the number of gig employees in countries such as the US, the UK, India, Singapore, and more.

But to work effectively with these groups, you must know the difference between the two. These terms are sometimes used interchangeably, but that is incorrect. While both temp and gig workers are short-term hires who are usually interested in full-time work, they’re a few differences between them. Let’s explore those in this blog.

Temporary Staff

When a company needs short- or long-term employees temporarily, they contact a temp staffing agency. Through that agency, they’ll get contracts to fill the jobs with the appropriate workers. The company pays the temp agency to provide them with these skilled workers. The agency pays the temporary employee. Agencies normally deal with a specific profession or industry. That can include healthcare, accounting, information technology, and more.

How Does a Temp/Contract Job Work?

Temp jobs last for 3, 4, or even 6 months, depending on the company’s requirements. When temp worker is employed by a company, they’re usually not allowed to work for other companies. Sometimes, agencies use a pool of their employees. They go to different locations to finish different assignments. They receive benefits such as vacation, unemployment, health, sick time, and more. Other times, these temp agencies use contractors to fill the requirement. Contractors aren’t eligible for the same benefits that full-time employees get.

But temp staff do enjoy other benefits, such as flexibility, the ability to work on different projects simultaneously, and working in different industries and companies. They get a fixed monthly salary, plus a bonus. This is a good way for employees to build their skill sets and resumes. Companies often hire temp workers for full-time positions if they’ve performed well.

Gig Workers

In gig work, an employee chooses a job and company to work for. They work on their terms. There usually isn’t a middleman convening between a gig worker and an employer. In many ways, these are like temporary workers, but there is a difference in the length of a particular job taken on.

How Do Gigs Work?

Unlike temp jobs, gigs are usually quick shift work. That includes working in warehouses, hospitality, housekeeping, dog-walking, or performing certain personal services. Gig work can be recurring and normally represents a small portion of a worker’s income. There are people in the workforce with full-time jobs who want to add to their income. They can easily pick up gig work in the evenings or on the weekends. Some of them have a variety of gigs that they work for different companies. That helps them to earn just enough to keep a gig working as their full-time employment. Many gig workers end up using this work as side jobs to supplement full-time employment.

The Differences Between Temp Staff and Gig Workers

1. Entitlement to Employee Benefits

   Contract workers get some employee benefits, although not as many as permanent employees. They may get medical bills reimbursed but won’t be eligible for corporate health benefits. These vary from company to company, and country to country. Many governments are making new provisions to give better benefits to temp staff. Gig workers don’t get access to such benefits. They aren’t entitled to sick leaves or paid vacation days.

2. Pay Stability

   Contract employees receive a monthly salary as long as they’re bound by a contract. This can be a monthly amount, and that gives a degree of financial stability. A monthly income makes it easier to plan your budgets and investments. But gig workers have a more variable pay, as it depends on many factors – many of which are unpredictable. That can go both ways, as they won’t have a minimum amount that they’re sure will come in, but that also means there is no cap on how much they can earn. 

3. Work Stability

   Temp staff is also bound to work for the company that has gotten them on contract. They cannot work for anyone else during that stipulated period. Gig workers, on the other hand, can work for anyone they wish to, at a given time. They are not bound by contract to work for any single entity unless specified specifically. They can choose different employers and industries to work in, which gives them exposure but is also devoid of the stability that working for a single entity provides.

4. Getting A Permanent Position

   Contractual workers are in a better position to land a full-time role in a company. That’s because companies are always looking to hire skilled professionals, and it’s easier to test and assess a contract worker rather than a gig worker. Normally, the company spends as much on a contractor as it would on someone in a permanent role. So, the employer would need to expense costs such as provident fund contributions, corporate healthcare insurance, and a budget for skills development. It’s easier for companies to reallocate their budget and hire a temp employee on a full-time basis. 

These are the main differences between the two and companies can benefit from hiring both types of workers for different requirements. All these workers are potentially talented individuals who can be converted into full-time employees.