4 Measurable Benefits of a Contingent Workforce
Posted on October 28th, 2016 Read time: 2 minutes
Utilizing temporary workers can provide considerable advantages. Here are four ways having a contingent workforce may benefit your business.
Cost Savings
You may save a substantial amount of money by bringing aboard temporary workers. Rather than cover full- or part-time salaries or wages, your business pays for services only when needed. This is especially beneficial during times of low production. Also, you don’t provide contingent workers with benefits. If vacation time, holiday pay, sick days, and health insurance are covered, the staffing firm or employer of record (EOR) pays for them. In addition, if you use the help of independent contractors, you won’t need to withhold payroll taxes, pay social security or Medicare taxes, or cover unemployment insurance.
Time Savings
When utilizing temporary workers, you free up time by not being responsible for administrative tasks. Payroll, administering benefits, and other HR duties are carried out by the staffing firm or EOR. You’re not responsible for interviewing, hiring, documenting, or training contingent workers. You also don’t have to deal with unemployment insurance, COBRA, or other employment-related issues that may be very time consuming.
Talent Pool Access
By bringing on temporary workers, you have a broad talent pool from which you may choose the “best of the best.” This is especially beneficial for projects lasting a limited time and needing specific skill sets that your employees may not possess. For example, you may secure the services of an independent contractor for less money than you’d spend on a full-time, long-term employee.
Flexibility
Using contingent workers gives your business flexibility in bringing on temporary staff only during peak hours, days, or times of increased demand. You can easily let go of contingent workers because they know they won’t be working for you long term. With changes in market conditions, you may easily adapt your temporary workforce to fit your company’s needs. You may even be able to evaluate contingent workers’ output levels and potentially hire on the most productive workers, if the need arises.
Temporary workers may provide many benefits for your organization. For additional ways of adding value to your business, get in touch with the professionals at Innovative Employee Solutions today!
Related Articles
Posted on October 28th, 2016 Read time: 2 minutes
Utilizing temporary workers can provide considerable advantages. Here are four ways having a contingent workforce may benefit your business.
Cost Savings
You may save a substantial amount of money by bringing aboard temporary workers. Rather than cover full- or part-time salaries or wages, your business pays for services only when needed. This is especially beneficial during times of low production. Also, you don’t provide contingent workers with benefits. If vacation time, holiday pay, sick days, and health insurance are covered, the staffing firm or employer of record (EOR) pays for them. In addition, if you use the help of independent contractors, you won’t need to withhold payroll taxes, pay social security or Medicare taxes, or cover unemployment insurance.
Time Savings
When utilizing temporary workers, you free up time by not being responsible for administrative tasks. Payroll, administering benefits, and other HR duties are carried out by the staffing firm or EOR. You’re not responsible for interviewing, hiring, documenting, or training contingent workers. You also don’t have to deal with unemployment insurance, COBRA, or other employment-related issues that may be very time consuming.
Talent Pool Access
By bringing on temporary workers, you have a broad talent pool from which you may choose the “best of the best.” This is especially beneficial for projects lasting a limited time and needing specific skill sets that your employees may not possess. For example, you may secure the services of an independent contractor for less money than you’d spend on a full-time, long-term employee.
Flexibility
Using contingent workers gives your business flexibility in bringing on temporary staff only during peak hours, days, or times of increased demand. You can easily let go of contingent workers because they know they won’t be working for you long term. With changes in market conditions, you may easily adapt your temporary workforce to fit your company’s needs. You may even be able to evaluate contingent workers’ output levels and potentially hire on the most productive workers, if the need arises.
Temporary workers may provide many benefits for your organization. For additional ways of adding value to your business, get in touch with the professionals at Innovative Employee Solutions today!
