Contingent Workforce Services
Whether there is a dynamic requirement of people, or there is a requirement of skilled staff, or the requirement is for a limited period, Contingent workforce can help.
Contingent Workforce Services
Contingent Workforce is a recruiting strategy wherein temporary workers (contract workers or consultants) are hired to supplement a company’s permanent workforce. Typically, a contingent workers are hired for a specific project or season of work. But contracts for contingent workers could range for few weeks to 12 months or even 24-months.
Benefits of Contingent Workforce
Cost-savings
A full-time employees' cost to company includes other benefits in addition to their salary, such as health insurance, state required contributions, retirement benefits, paid time off etc. On the other hand, contingent workers are not required to get any of these benefits saving companies tons of money.
Flexibility
Since contingent workforce is temporary it is easy to adjust number of contingent workers based on business requirements. It is common for companies to hire contingent workers on contract for a project. Once a project is over, the contract ends and contingent workers part ways without any liability on the company. In some cases, companies may have an option to hire these contingent workers and permanent employees, if they so wish. Such contracts are called contract to hire.
Is Contingent Workforce for you?
It is a 3 step process
Determine if the work you want to get done is temporary, seasonal or permanent in nature. If you are not going to need the worker in the long run, contingent workforce might be the right choice. If you are not sure, you can always start with a contingent worker and switch to permanent employee later. It is difficult and costly to do it the other way round.
Is the work straight forward such that you can delegate it to the worker with high level instructions or it is so complex and unique that you need to control it closely. If it is the latter, you would be better off hiring a permanent employee otherwise you have the risk of running a-fowl of law.
Calculate the total cost of an employee by adding its salary, benefits and taxes. In case of contingent worker, there will be only compensation and worker will be responsible for covering its own taxes. While some costs are obvious, do include some not so obvious costs such cost of training an employee and cost of terminating an employee - both of which are not there when hiring a contingent worker.
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