Importance The article discusses institutional development trends and patterns of contracted employment. Objectives I investigate institutional trends and patterns reflecting the formation and development of contracted employment in today’s labor market. I justify the concept of third party logistics (TPL) as a methodological basis for classifying forms and methods of contracted employment. Particular attention is paid to the analysis of institutional features of cyclical development of non-staff employment and the consequences of the regulatory impact of the state on the labor market. Methods The methodology is based on exogenous, logistic and marketing approaches, theory of self-organization and institutional theory. As the primary reason for the spread of contracted employment, I focus on institutional opportunities that are open to market actors in the networked economy. As an incentive motive, employers are advised to employ contracted workers and specialized intermediaries from perspectives of economic reasonableness. Results I prove that cost effectiveness pursuits of employers result in a variety of contracted employment forms (from production to transactions). The article sets out the classification of contracted employment based on the concept of third party logistics, revealing its institutional features. Conclusions and Relevance The institutional development of contracted employment tends to an increasing role of intermediaries, which let employers intensify the manpower. During the economic downturn, decreased corporate costs is the most reliable growth driver of profitability and competitiveness. As an institutional regulator, the State sets contracted employment limits, forcing market participants to improve employment forms. Contracted logistics represents the final stage of the institutional development of contracted employment.
Keywords: outstaffing, contracted work, third party logistics, outsourcing, staff lease
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