Many business owners and managers often wonder why companies hire contingent workers and if it’s a good option for their own business. While there are obvious reasons to consider a contingent workforce strategy, there are also lesser-known, highly cost-efficient benefits to hiring contingent workers. Follow along as we take a deep dive into the cost benefits of a contingent workforce and what they could mean for your ROI.
Why Do Companies Hire Contingent Workers?
Contingent workers offer companies cost-saving options for their workforce that are simply hard to pass up. For most companies and workforce structures, contingent workers provide a better ROI when it comes to employment solutions for:
- Business growth or restructuring
- Maintaining productivity during seasonal fluctuations
- Finding short-term, job-specific employment
- Employee “trial periods” to determine if a person or position is the right fit for their company
Although contingent workers may not be the solution for all companies, there are some advantages that owners may not know about. So, as you consider the possibility of incorporating contingent worker positions into your company, consider how these cost benefits could support your business’s success in the long term.
Hire & pay for additional staff ONLY when you need them:
Are you in a seasonal business or have a set busy season? Companies often overhire to compensate for peak seasons without considering the other less busy months of the year.
This often results in business owners paying for double the workforce they need when they could likely get away with paying for a much smaller workforce for most of the year.
Contingent workers solve this issue because they work on a contract-by-contract basis. This means business owners or managers are in control and should determine just how long they need to pay for additional work. Then, once the contract is up, the contingent workers move onto the next thing, and you’re back to business as usual, without paying for extra labor you don’t need.
Contingent workers cost you less than full and even part-time employees
In contingent work, benefits are not always expected and are generally determined on a contract-by-contract basis. So, depending on your finances, you can outline a cost-efficient benefit solution during contract creation.
Pro tip: Do your research to set yourself up for greater ROI while still hiring a qualified contingent workforce. You’ll need to determine what contingent workers are expecting when it comes to wages and other benefits like flexible schedules.
It’s up to you to determine the best wage and benefit contract for your company and your temporary workforce, creating a solution with the greatest long-term payoff.
Wages stay consistent
Budgeting for your current employees’ futures can be stressful, especially when raises and increased benefits creep up on you. One of the biggest advantages of hiring contingent workers is that you’re in control of the wages, and raises are not required or anticipated. Contingent workers are a set expense on your balance sheet when you need them and a $0 when you don’t. Those are two numbers you can rely on to stay consistent.
With part of your employment staying consistent, you can focus on promoting other full-time employees or investing your profits into other aspects of your business.
Waste less time training by hiring specialized contingent workers
As much as we all hate the cliche “time is money,” business managers and owners find out all too often how true it really is. Avoid product backup and human error by getting experts on your team, and pay for them only during the projects you need them for.
Contingent workers who can provide specialization are often the best choice when you’re in a pinch and don’t have time to waste training or fixing errors. If you’ve got projects, you need to start ASAP — find out how you can hire the right employees fast.
Want to develop a strategy to ensure cost-efficiency you can rely on?
We’ve helped businesses nationwide and across many industries create customized staffing solutions that match their specific goals. Let our team give you peace of mind when hiring contingent workers! We’re here for you—contact us today to see how we can create the right plan for your company.