Although the client company does not offer the worker benefits, the agency might. One of the common practices in the high-tech industry is to bring in temporary workers for long periods. Hilton says many companies also use permanent temps as a way of making the books look better because the company is able to show fewer permanent employees, avoid paying fringe benefits, and possibly avoid potential discrimination issues. One factor that determines whether someone is a contingent worker or, in reality, an employee, has to do with supervision and whether the worker is free to take on projects at other companies simultaneously. One of the dark secrets of the relationship between the high-tech industry and the temporary agencies is the frequent collusion to prevent a contingent worker from working for other firms simultaneously, according to Hilton.
Loyalty can be an issue.
Conflict of interest arises when a contingent worker who needs to begin prospecting for the next job must interview with competitor companies, running the risk of accidentally revealing trade secrets. Another problem with the use of permanent temps is that they might be treated differently than full-time employees. Many managers treat them as second-class citizens, demanding performance while denying them the benefits and community that permanent employees enjoy, say industry pundits. Hiring independent contractors offers some advantages and drawbacks. You can bring in an experienced professional for a specific project.