You hear a lot about the contingent workforce today. But what exactly is it, and how can it benefit your business? Are contingent workers objectively better than a permanent stable of employees? Or are there ways working with contingent workers on a project basis can improve productivity?
If you want to know whether or not a contingent workforce can make your business more profitable, consider the following points.
What Is the Definition of Contingent Worker?
Anyone who isn’t a permanent employee of your company is considered a contingent worker. This definition applies to freelancers, contractors, temporary employees, consultants, or any other outsourced worker who is not employed by your company directly.
How Are They Different From Employees?
What exactly is the difference between contingent and employee? An employee is someone paid hourly or salary directly by your company, who also receives additional benefits. Your contingent workforce will not receive employee benefits through your organization.
What Are the Financial Advantages?
For the most part, the primary advantages of working with a contingent workforce are financial. Companies do not have to pay taxes on contingent employees working with their organization. They also don’t have to handle the administrative costs or provide additional benefits.
What Are the Disadvantages?
Keep in mind that working with a contingent workforce does mean your business will have less control over these workers. For the most part, contractors or freelancers can control their own time, as long as the agreed upon work is completed. There may also be financial penalties if your company treats contingent workers as employees.
What Is the Bottom Line?
Today’s employment market is changing, and in many cases, companies who do not embrace a contingent workforce are missing out on top talent they need to be successful. Learning more about how to work with a non-permanent staff will only increase your ability to provide valuable goods and services to your client base.
Can a contingent workforce work for your business?
About Anserteam Workforce Solutions
The ANSER to your North American workforce management needs starts with A-Team solutions. Anserteam is the alliance of North American staffing and employment resources. Since 2004, Anserteam has grown to service over 1,500 locations across the United States and Canada. Are you a best-in-class staffing firm looking to increase your client base and secure a greater market share? Find out how to become part of Anserteam.