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, though it may be an added service provided by your staffing partner.
What Are the Financial Advantages?
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 avoid some costs associated with benefits, administrative fees and legal risk.
Flexibility & Agility
Utilizing contingent employees gives your company a level of flexibility that is not possible with permanent staff. You can easily and quickly scale up and down when needed to keep your operations efficient and effective. A good partner will also provide analytics and insights on the overall performance of your contingent labor program to foster continuous improvements and ensure you are taking full advantage of your agile workforce.
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?
Contact Anserteam for a free consultation.
Anserteam Workforce Alliance represents North America’s very best staffing agencies aligned together to deliver world-class workforce management solutions. We offer end-to-end talent services that can be customized for any size business, utilizing our Managed Services Provider (MSP) model and Vendor Management Solutions (VMS) technology. Is your organization seeking a WBENC-certified diversity partner to provide measurable results and substantial cost savings? Contact us today.