In the United States, talent shortage has become a real problem over the last few years. According to the statistics, 72.8% of employers stated that they experience difficulty in finding skilled candidates for their organization. Hiring wrong candidates to leave companies’ needs unsatisfied which not only affects their business operations but also costs them extra money.
Furthermore, due to globalization and e-commerce, the business environment has become very dynamic and fast-paced, which makes it challenging for businesses to anticipate the resources they need to sustain their operations efficiently. Therefore, it has become imperative for companies to reshape their hiring patterns.
Many successful businesses have already started taking steps to hire strategically in order to maximize their profitability. To combat obstacles that come with traditional hiring, employers have started using contract staffing. Let’s learn what is contract staffing and why businesses should invest in contract staffing.
What is Contract Staffing?
Contract Staffing, as the name suggests, is a recruiting method where a business hires a skilled employee on the basis of a specific written contract, which outlines the terms of their arrangement. They are primarily used for short-term purposes to work for a certain number of hours or until the completion of a project.
10 Reasons To Use Contract Staffing
Reason#1: Access to specialized skills
The primary benefit of using contract staffing is access to specialized skills. It allows hiring a skilled employee for short duration who brings a valuable set of skills that can improve the quality of final deliverables.
Furthermore, a new assignment may require expertise that your existing team does not possess. Contract staffing agencies can provide candidates with specific skill sets to ensure your project is carried out successfully within the deadline.
Reason#2: Fulfill short term business needs
When companies are looking for a workforce to fulfill their short-term needs, hiring full-time employees doesn’t make sense. Hence, they resort to outsourcing, but it comes with security risks, loss of managerial control, and possible quality issues, among other issues.
Here, contract staffing can be highly beneficial as companies have access to the skillful workforce for a shorter duration of time without making any commitments and avoid facing disadvantages associated with outsourcing the project.
Reason#3: Access to larger talent pool
While hiring skilled employees may seem simple on the surface, it’s actually a cumbersome and time-consuming task. No matter the size of a business, they can only find a certain quantity of candidates, which is typically a fraction of what staffing agencies have to offer.
Contract staffing recruiters provide companies access to larger talent pools. Placement agencies are always recruiting and provide high-quality candidates depending on the specific requirements of your project.
Reason#4: Find the right fit for the project
It can be incredibly difficult to evaluate whether a candidate will be the right fit for your company—particularly for the project. If an employee is unable to mix well in the organization or unable to fulfill tasks immediately, they can become a burden on your company.
Contract staffing also helps to eliminate this problem by providing flexibility in hiring. Worker doesn’t fit in the culture or unable to work efficiently? No problem! Simply remove them from the project and get a replacement. It’s as simple as that!
Reason#5: Prevent laying off employees
There are numerous instances where a business gets a big contract and hires a team of full-time employees but the deal falls apart. Unless the new recruits can be assigned to a new project or another department, the company has to fire them.
Laying off employees not only reflects poorly on the image of the company but also costs money. Contract staffing services help organizations prevent such situations as employees are only hired for a short duration.
Reason#6: Take some responsibility off the HR department
Hiring an employee requires screening, interviews, background checking, and heaps of paperwork, which can take a lot of time for the human resource department. For a short-term contract, it’s simply not worth the effort.
Using contract staffing allows helps taking some responsibility off the HR department shoulder and help them to function more effectively as staffing agencies take care of all the paperwork and cumbersome involved in hiring a new employee.
Reason#7: Escaping the ACA requirements
In the US, companies that have employed more than 50 employees must provide health insurance to their employees by statute. Small companies that are near this threshold may not have sufficient cash to fulfill this requirement.
Again, using contract staffing agency to hire employees allows companies to escape this requirement as workers who are recruited using this method are not deemed as your employees, but considered as contractors instead.
Reason#8: Reduce business liability
Surprisingly, contract staffing also helps businesses to reduce liability pertinent to the workforce. For instance, an employer is responsible for the safety of full-time and part-time employees and providing them unemployment benefits, workers’ compensation, and other facilities.
Even if they are hiring contractors, there are certain caveats that can subject a company to additional liabilities. Using contract staffing, a business can minimize exposure and liability related to employee payouts, which helps to protect its financial interests.
Reason#9: Learning opportunity for preexisting employees
Professionals hired via contract staffing are experienced and knowledgeable individuals who can add value to your organization. Aside from carrying out tasks efficiently, they can train the pre-existing staff of your company.
The best part? It won’t cost you a penny. And your employees can potentially learn a lot from the expertise and experience of contract staffing specialists. Your employees will probably welcome this learning opportunity as they are less likely to feel threatened by part-time employees.
Reason#10: You’ll actually save money
Contrary to popular belief, contract staffing actually helps companies save money. First, it saves costs associated with hiring such as screening, recruiting, and—most importantly—training, which can take an extensive amount of time and resources.
Secondly, it helps in reducing turnover which also costs money. Finally, staffing agencies thoroughly examine candidates before sending them to ensure they are competent and skillful to become productive and contributing members of your team in a short duration.
We hope that the aforementioned reasons helped you understand contract staffing advantages in detail. From increased flexibility to reduction in costs, it offers tremendous value to organizations. However, it’s very important to partner up with a reputable contract staffing agency that takes pride in their candidates to benefit from this form of arrangement.
If you’re looking for contract IT staffing and professional services, get in touch with IT Avalon. Based in California, the company offers professional candidates with relevant skillset and experience to fulfill your business goals. To learn more about our services, or see a list of available contractors, click here.