Contingent Workforce Services
Whether there is a dynamic requirement for people, a need for skilled staff, or a requirement for a limited period, contingent workforce solutions can help.
What is Contingent Workforce?
A contingent workforce is a recruiting strategy wherein temporary workers, such as contract workers or consultants, are hired to supplement a company’s permanent workforce. Typically, contingent workers are hired for a specific project or season of work, with contracts ranging from a few weeks to 12 or even 24 months.
Benefits of Contingent Workforce
Cost Savings A full-time employee’s cost to the company includes benefits beyond their salary, such as health insurance, statutory contributions, retirement benefits, paid time off, and more. Contingent workers, on the other hand, are not entitled to these benefits, resulting in significant cost savings for the company.
Flexibility Since a contingent workforce is temporary, it is easy to adjust the number of workers based on business requirements. It is common for companies to hire contingent workers on contract for a specific project, once the project concludes, the contract ends and the contingent workers part ways without any liability to the company. In some cases, companies may have the option to transition contingent workers into permanent roles if they so wish. Such arrangements are commonly referred to as contract-to-hire.
Is Contingent Workforce Right for You?
It is a three-step process:
Step 1 — Define Scope of Work
Determine whether the work you need done is temporary, seasonal, or permanent in nature. If you will not need the worker long-term, a contingent workforce arrangement may be the right choice. If you are unsure, you can always begin with a contingent worker and transition to a permanent employee later, as it is generally more difficult and costly to do it the other way round.
Step 2 — Determine Level of Control You Need
Is the work straightforward enough to delegate with high-level instructions, or is it so complex and unique that it requires close oversight? If it is the latter, hiring a permanent employee may be the safer option, otherwise you run the risk of falling foul of employment law.
Step 3 — Compare Costs
Calculate the total cost of a permanent employee by factoring in salary, benefits, and taxes. For a contingent worker, compensation is typically the primary cost, as the worker is responsible for covering their own taxes. Whilst some costs are obvious, be sure to account for less obvious ones, such as the cost of training and the cost of terminating a permanent employee, neither of which apply when hiring a contingent worker.
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