A disadvantage of using contingent workers is that they a may pass on information about corporate processes and strategies so subsequent client who could be competitors may attempt to form a union see can demand payment for health insurance and retirement benefits D create the need to hire new employees when staffing needs increase
The Correct Answer and Explanation is :
The correct answer is B: may pass on information about corporate processes and strategies so subsequent clients who could be competitors.
Contingent workers, also known as temporary or contract workers, are hired for specific, short-term tasks or projects. While they offer businesses flexibility and cost savings, one significant disadvantage of using contingent workers is the potential for these workers to pass on sensitive information about corporate processes and strategies to other clients, including competitors. Since contingent workers are often employed by multiple companies at once or rotate between various assignments, there is a risk that they may share trade secrets, intellectual property, or strategic business insights with others in their network, including future employers who could be competitors.
This information leakage can pose a serious threat to a company’s competitive advantage. For instance, if a contingent worker working for one company gains access to valuable operational data, proprietary software, or internal strategies, they could share this information with a rival business, either intentionally or unintentionally. This can lead to a loss of market position, competitive advantage, or even legal liabilities if confidential agreements are breached.
Additionally, contingent workers may not have the same level of loyalty or investment in a company’s long-term success as full-time employees. Their transient nature means they might not fully adhere to confidentiality agreements or consider the long-term implications of sharing sensitive information, unlike permanent staff who have stronger incentives to protect company interests.
To mitigate these risks, businesses often require contingent workers to sign non-disclosure agreements (NDAs) or other contractual agreements to ensure confidentiality. However, there is always a degree of risk when relying on temporary staff who may work for competitors or move between industries.