Why is Contract Staffing Becoming More Popular?

June 20, 2019 Pete Newsome Pete Newsome

A recent poll conducted by National Public Radio (NPR) and Marist found that 1 in 5 American jobs is held by a worker under contract. Within a decade, these contract and freelance positions are predicted to make up half the workforce.

So, what is contract staffing and why is it becoming increasingly popular? It essentially gives businesses the ability to “hire on-demand,” enabling them to meet their exact capacity at any given time. This essentially provides limitless workforce options for both the short and long-term.

The flexibility and scalability that contract staffing provides can help drive your business growth strategy. Here are a few more reasons why contract staffing is becoming a common component of many hiring structures.

Contract Staffing Reduces Hiring Costs

When you bring on a new full-time employee, you’re agreeing to pay them a salary and benefits, which can be a large up-front investment for your business — not to mention the commitment to recurring expenses. If you have more short-term needs or are unsure about what your future workload might look like, leveraging contract staffing and freelance positions could be a cost-effective solution.

Contract employees are paid only for the hours they actually work rather than being salaried and on your internal benefits plan. Thus, you won’t be required to pay for health insurance or match 401(k) contributions. The bottom line? You’re able to pay for exactly what you need when you need it. Plus, if those needs end up changing, you can easily scale up or down to align.

Contract Staffing Shortens the Hiring Process

The hiring process for a full-time employee can be time-consuming and costly — after all, if you’re going to commit to paying all the costs associated with a full-time employee, you want to make sure it’s the right move. More employers are turning to contract staffing because it eliminates many stages of the hiring process. This saves you valuable time and resources while allowing the temporary talent you need to start as soon as you need them.

Additionally, when you work with a contract staffing recruiter or headhunter, you can eliminate time-consuming front-end recruiting tasks like sourcing and screening resumes — they’ll do all of it on your behalf. With the expertise recruiters at professional staffing agencies possess, you’ll experience an expedited, streamlined hiring process. Hence, the urgent needs that initially led you to take advantage of contract staffing can be fulfilled even sooner!

Contract Staffing Helps Meet Project-Based or Seasonal Needs

Being over-staffed and paying salaries and benefits for employees you don’t really need is wasteful. At the same time, you don’t want to risk being under-staffed and unable to complete your current workload. Contract staffing allows your business avoid these two extremes by meeting your exact capacity — especially when it fluctuates due to seasonal or project-based needs.

For example, if a client asks you to work on an especially large assignment or you have a unique one-time project, contract staffing can help you fulfill those needs immediately. You’ll have access to the additional brainpower and hands you need to get the job done, and will then be able to scale back once it has been completed. This method of staffing can also help your business combat seasonal ramp-up challenges, which are very common in the hospitality and retail industries. By bringing in additional employees you need specifically to handle the busiest shopping or travel seasons, they won’t be sitting stagnant on your payroll once the slow season returns.

Contract Staffing Saves on Specialized Skills

Oftentimes, completing a unique project will require skills you don’t already have in-house. In this case, it wouldn’t benefit you to hire a full-time employee if you only require these skills to complete a short-term project. To combat this skills gap, employers are turning to contract workers.

Simply put, contractors can help you complete projects that require skills and experience your full-time staff doesn’t have. This way, specialized jobs can be completed in a cost-effective way — you won’t need to spend time and money training the employees you do have on additional skills they’ll only use once. Especially if you have a project that requires highly in-demand or very niche skills, contract workers can help you get the job done efficiently and effectively without having to pay them for more time than you’re actually using.

Contract Staffing Helps Handle Rapid Growth or Expansion

You can’t always predict what the future will hold — especially in business. If you secure a new client, extend a project, or expand the scope of an existing contract, you may not be prepared to meet capacity. So, you may be wondering how to scale up your business on such short notice. One potential solution? Contract staffing! This is a solution that helps you stay productive during these times of unexpected growth by making it possible to quickly hire the help you need.

Even if you can predict when growth or expansion is coming, it can be difficult for your full-time employees to take on that additional work themselves. After all, they already have a full workload. When this occurs, you can leverage contract staffing and freelance positions to complete any extra work necessary during times of rapid expansion. This way, if your business is expanding into a new territory or introducing a new product or service, you can fill immediate capacity gaps — then scale back down once start-up tasks have been completed and the dust has settled on that big new project or offering.

Partner with the Right Contract Staffing Agency or Headhunter to See Success

As you can see, there are numerous reasons why contract staffing and freelance positions are becoming more commonplace. However, keep in mind you won’t be able to reap all these benefits unless you have the right contracted employees working for your business.

This is why it is important that you’re partnering with the right contract staffing recruiter or headhunter; not just anybody. Not all professional staffing agencies are the same, which is why you need to do thorough research to find the one that is the best match for your business and its unique needs.

At 4 Corner Resources (4CR), we offer contract staffing solutions for businesses of all sizes throughout the US. Our flexible terms and conditions for contract staffing gives you the ability to hire on-demand no matter your specific requirements, volume, or budget.

Now that you know why many other companies are taking advantage of this rising trend, do you need help determining if contract staffing should be a part of your hiring strategy? Are you ready to start working with an expert 4CR contract staffing recruiter? We’re ready to help you transform your workforce — contact us today!

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