Contract work is no longer risky – here’s why employers should consider this recruitment option
In the last decade, there’s been a noticeable shift in the way workplaces are structured. More and more people are transitioning from traditional nine-to-five roles to flexible contract work. Leading companies all over the world now prefer contractors to fulfil certain job functions.
This is partly due to the fact that hiring and retaining full-time employees can be an expensive option for companies. Leaning into the ever-changing landscape of contract work is a great way to reduce costs and keep businesses profitable. Additionally, flexible work arrangements are preferred by employees, particularly millennials.
The COVID-19 pandemic is another reason why there’s been a significant rise in contractors globally. Working from home has become commonplace and contracting is no longer considered the risky proposition it once was. The health crisis has also made people reassess their priorities and reevaluate their work-life balances. So, the contracting space is only likely to continue to grow in the coming years. Let’s take a look at some of the advantages of using contractors to supplement your workforce.
One of the main reasons why companies prefer independent contractors for certain roles is to cut costs. Unlike full-time employees, contractors will not need to be given benefits such as health insurance, annual leave, sick leave and retirement funds. Since companies are paying only for the services of the contract worker, this can bring down annual expenditures significantly.
If you opt to work with contractors, you will also save on overhead costs such as rent, electricity and office supplies. More companies are encouraging their staff to work from home for this reason.
Project Based Payments
Some of your projects may be one-off tasks or may only be active during certain times of the year. Assigning full-time employees to them will be a waste of time and resources. It makes more sense to hire independent contractors to complete jobs such as these.
Other projects may entail a wide array of skill sets that your current team members lack. In such a scenario, engaging a full-time employee just to complete the task makes little sense. Contractors can be hired on a per-project basis to fill these gaps in your existing workforce. Since they are paid per job, you have the freedom to use their services as and when required.
Access to Global Talent
Hiring contractors gives employers the chance to work with talent from across the globe. Thanks to the number of connectivity tools available today, they are not restricted by geographical limits. Having access to a wide pool of talent means you can find the right individuals to suit specific roles you’re trying to fill. Working with people from other countries will also result in knowledge sharing and exposure to new methodologies that your current employees can benefit from.
The ability to use contract workers is also extremely helpful when a company is looking to expand to other markets. Starting out with contractors who have an understanding of the local language and culture can be hugely advantageous. This strategy can also help organisations minimise risk in case things don’t go as planned.
Guaranteed Transparency and Accountability
Thanks to the growing popularity of contracting as a way to earn a living, there are a number of platforms companies can use to connect with contract workers. Through these talent-pairing websites, you can find the right contractor to meet even the most niche requirement. Another advantage of hiring through these websites is the added layer of safety and accountability. The money goes into escrow and payments are made only when the client is satisfied with the output. Terms are agreed upon beforehand and any conflicts that arise will be resolved by a third-party.
The shift in favour of contractors is likely to continue thanks to the many advantages this way of working offers. Contract workers enjoy more freedom and have the potential to earn higher incomes than full-time employees. Going forward there’s a good chance that nine-to-five jobs with benefits will be harder to find more than ever.
Independent contractors may not be right for some positions in your company, but they are ideal if you have short-term projects or jobs that need not be performed onsite. When it comes to hiring contractors to fulfil specific roles, the pros outweigh the cons. Today there are many ways to mitigate the risks of hiring workers contractually. So, it’s time for employers to start thinking outside the box to keep up with rapidly evolving workplace structures.
At Recruitment Studio, we take your business requirements into account to help you find the right candidates from our specially curated pool. If you’re looking for short-term staffing solutions to meet your hiring needs, get in touch with us today.