Trading‐off flexibility: Contingent workers or human resource practices? A configurational approach

Atypical work has been proven to worsen employment conditions, reduce labour productivity and hinder firms from competing in higher quality market segments, yet companies still hire atypical workers to provide flexibility in response to unstable market conditions. Previous research has examined the relationship between specific job features and the incidence of atypical work. Using a fuzzy-set qualitative comparative analysis technique, we analysed interviews of service firms’ managers to identify configurations that limit the use of atypical workers. We found evidence that firms limit the use of atypical contracts not only in cases of firm-specific and complex tasks but also in cases of simple and nonspecific tasks when supported by human resource management practices that aim to increase internal flexibility. Firms can take advantage of a stable workforce by strategically using human resource management flexibility practices as an alternative to labour market flexibility.