Contingent Hiring Saves Money

Contingent hiring saves companies money in a number of ways.

First, contingent workers cost less than full or even part-time employees due to benefit expectations. Because you’re working with termed contracts, your company most likely won’t be required to provide additional benefits to a contingent worker, such as health insurance or paid time off, nor are they expected by the employee. The only factor is the employee’s wages, helping you save money long-term.

Second, contingent hiring is especially helpful in saving money for companies that deal with temporary periods of staffing needs. If there is a project or period of time in which your company needs help, it doesn’t make sense to hire a full time employee you’ll have to find a place for after the project is complete. Hiring contingent workers means you’re fully staffed when you need the help and not overstaffed down the line.

Lastly, you can actually save time, money and effort by hiring specialized individuals for specific needs and projects, especially if that need or project is short term. Hiring a specialist for a full time, permanent position usually requires higher pay and benefits, but training a full time employee who isn’t specialized for that project can take more time and effort than you have available. Hiring contingent workers who specialize in the job you need done means you get the benefits of their expertise without the long term commitment.

Contingent Hiring can Act as a Probationary Period

Hiring contingent workers doesn’t mean they’re gone the second their contract is up. More and more often, companies are choosing to hire contingent workers with short term contracts as a probationary period. Your company saves time and money—and keeps you from potential legal headaches if you don’t think the employee is a good fit for the company—by working with a contingent worker until you’re ready to offer a permanent position.

Contingent Hiring Can Also Buy You Time

Or maybe you won’t want to offer a contingent employee a full time position at the end of their contract, but it will buy you time to find that perfect someone for your team while making sure the workload gets done. If you’ve ever rushed the hiring process and ended up with employees you were less than excited about, hiring contingent workers will allow you to take your time finding the right people to fill a vacant position.

Contingent Hiring is Low Risk

Work still needs to get done even if you’re dealing with an uncertain economy, but no one wants to lay off employees. Hiring contingent workers means you have employees when you need them at a budget you can afford, but because their employment is on a contract basis, you don’t have to worry about layoffs if they’re needed. Plus, because contingent workers are less expensive, you’re getting the same amount of work done without the risks associated with hiring someone new in a time of flux.