The traditional workforce is changing. In 1983, contract workers accounted for just over 0.5% of all employment. Today’s average mix of contingent workers has grown from 12 percent in 2009 to 18 percent in 2015, according to an annual survey conducted by Staffing Industry Analysts. And 46 percent of those surveyed expect the share of contingent workers to continue to climb.
Understand the benefits.
Not long ago, “temping” meant you couldn’t find a “real” job. The stigma once attached to temp work has lessened significantly. The current generation craves the flexibility and freedom that temporary work allows.
Workers aren’t the only ones discovering the benefits of contract work. Companies adapting to this trend are discovering the advantages of a flexible workforce, including the ability to:
Adjust to workload fluctuations.
The layoff-hire-layoff cycle is all too common. Businesses in a rapidly changing environment appreciate the agility that temporary staffing provides. And especially now, with the uncertainty in how the election may impact the economy, companies are more cautious about bringing on permanent employees.
Vet candidates on the job.
Some businesses employ contractors as a cost efficient means to recruit and evaluate a potential new hire before making a commitment. Observing a candidate on the job provides far more insight than the traditional hiring process. In fact, according to CareerBuilder’s 2016 job forecast, 47 percent of employers plan to hire contract workers this year and, of these employers, 58 percent plan to transition some contractors into permanent roles in 2016.
A mix of permanent and temporary employees allows you to turn some of your fixed employee costs into variable expenses. You only pay for talent when needed. Additionally, hiring temp workers is often less expensive than the cost of hiring permanent employees when you include the added costs of full-time employment, including health insurance, vacation time, payroll taxes, workers comp, etc. Especially with the Affordable Care Act, full-time employees can be significantly more expensive.
Recruiting requires a considerable amount of time and effort. If you contract with a staffing agency, this work shifts to an experienced hiring team. You simply give them your qualifications and they will scout candidates who possess your needed skills.
Improve morale and retention.
Temporary employees can lift some of the burden held by overworked full-time employees. It also decreases the likelihood of full-time cutbacks during times of change, thus increasing job security and retention.
Access specialized expertise.
When a project arises that requires a specific skill that doesn’t exist in-house, there are contractors with experience waiting in the wings. Because of their specialized skill sets, contractors can get right to work with minimal training and downtime.
Before hiring a contingent workforce, it’s important to understand the difference between an employee and a contractor. The federal government has recently increased enforcement of perceived abuse of worker classification laws. As a result, many companies have been penalized and are paying hundreds to millions of dollars in fines.
To avoid the risk of misclassification many businesses pass the responsibility onto a staffing agency, such as Hunter Hamilton. By doing this, you can rely on our staffing experts to guide you in a direction that aligns with the law. We recruit, screen, and hire the people you need. These contractors become employees of our staffing agency, not your company.
Let’s get to work!
For over 30 years, Hunter Hamilton has partnered with businesses to provide finance and accounting professionals. Connect with us to access the experienced talent you need to create your ideal workforce.
Sources: 2015 Contingent Buyers Survey by Staffing Industry Analysts & 2016 Job Forecast by CareerBuilder