Today’s business world requires employers to be flexible, adapting quickly to changing needs. What is an advantage of hiring contingent workers? Hiring contingent workers is an excellent way for business owners to remain agile, fill talent gaps, have the help they need when they need it. The ability to pivot quickly is more important now than ever as the world navigates a global pandemic with a tight labor market. To fully harness the power of the contingent workforce, business leaders must first understand the different types of contingent workers, the advantages of hiring contingent workers, and all of the potential pitfalls.
Types Of Contingent Workers
There are three significant categories of contingent workers: temp workers, consultants, and independent contractors.
Temp workers are ideal for project-based assignments or seasonal workloads. These workers range from lab assistants to quality assurance testers and sales associates to help teams achieve their goals. Their assignments are precise in length and scope. Consultants help businesses offset a skills gap. These workers are equipped with the skills required to execute a project efficiently and add tremendous value to your team. Independent contractors help businesses cover skill shortages and provide a high level of knowledge and expertise to your organization. Within these categories of contingent workers are several advantages and disadvantages.
What Is An Advantage Of Hiring Contingent Workers?
There are numerous advantages to hiring contingent workers from the employer’s perspective, including financial savings, skill acquisition, and flexibility.
Because contingent workers are not full-time employees, employers do not need to provide them with costly benefits like healthcare, retirement accounts, vacation time, or overtime. You pay them an agreed-upon rate, and that’s it! Once a contract is finalized, the terms are clear; there will be no more discussion about pay.
In addition to saving employers money, contingent workers bring valuable skills, expertise, and perspectives to the table with no strings attached. Businesses can hire a graphic designer or financial analyst on a contingent basis for their specific knowledge without worrying about onboarding, providing a salary, or benefits.
Another significant benefit of a contingent workforce is flexibility. Employers can easily hire a contractor for a one-time project or bring them onboard for several months at a time. If the contingent worker does not meet expectations, businesses can opt not to work with them again without any further action. Conversely, if contingent workers do not like the project or the company, they can move on to something else. It’s up to you (and to them) if you will work together again.
Disadvantages Of Hiring Contingent Workers
Though we would argue that the benefits far outweigh the drawbacks, there are a few potential pitfalls employers need to be mindful of when hiring contingent workers.
The main drawback is the contingency agreement itself. The line between a contractor and a full-time employee can blur, causing potential legal headaches for the company. Contingent workers can also misunderstand the agreement thinking they are entitled to more than what they are. To prevent any drama, research the types of contingent workers and ensure that your contract is unambiguous, outlining all expectations, pay rates, and time frames.
Another drawback to hiring contingent workers is that they can be challenging to recruit and cause your company and departments to feel fragmented. Work with your regular employees to make sure that they understand the contractor’s role and purpose in the organization. Keep the lines of communication open with your staff so that any confusion or problems can be addressed quickly. If the department has concerns about the temp worker, hold an open forum for discussion. The more you invite feedback from your full-time employees, the better the arrangement will be.
Recruiting the right contingent talent is essential to the success of a business, while bad hiring decisions, even temporary ones, can be detrimental. Recruiting contingent workers isn’t all that different from recruiting permanent workers, and the process can be lengthy. To avoid recruiting mistakes, let NexusCW get it right for you the first time, every time. We understand the elements of the “right” candidate and the importance of your company’s culture in the contingent hiring process. Our expert team is passionate about building your team!