12.
The use of alternative work arrangements which include independent
(p. 25-
contractors, on-call workers, temporary workers, and contract company
26)
workers is shrinking.
FALSE The Bureau of Labor Statistics estimates that alternative work arrangements make up 11 % of total employment. One of the reasons for the growth of the use of contingent workers is because companies are adding temporary workers as the economy begins to improve but are delaying adding new permanent employees until economic growth is more stable and certain. Also, companies want to avoid going through the painful layoffs that occurred during the recession.
AACSB: Analytic Blooms: Understand Difficulty: 1 Easy Learning Objective: 01-02 Discuss the implications of the economy; the makeup of the labor force; and ethics for company sustainability. Topic: Competitive Challenges Influencing Human Resource Management