Staffing: Top Reasons Companies Use Contract or Temporary Help
The holiday rush is in full swing, and that means it’s a busy time of year for the staffing industry. In a recent analysis, the Staffing Industry Analysts found that a fifth of contingent workers were hired for seasonal reasons. Our current unemployment rate is less than ideal at 7.8 percent, and with many companies struggling as well, hiring contract workers is on the rise.
But holidays aside, what are the reasons that companies use contingent workers? As a staffing industry, the better you understand the needs of your company, the better you can find high quality, comprehensive candidates for them. Here’s a list of the top reasons why companies choose to hire temporary workers.
Project work. Full-time staff may be too busy to take on a large scale project in addition to their regular duties. Using a contracted solution is a perfect fit.
Work with an uncertain future. It might be a new business venture or product line. “High risk” ventures aren’t appealing to permanent workers- hence contract workers are a great solution.
Interim roles. Maternity leave, sick leave, leaves of absences can all take employees away from work for a significant period of time. Or, there may be a leadership change and you need someone to fill in the position in the interim. Using a staffing industry to find contract workers is a good solution.
Knowledge and training. Contract work is rising- there is a huge array of skill sets and talents in the contingent workforce. Bringing in a contract worker for a certain product or to train employees can be a great way to boost your company’s skill set.
Cost containment. A large benefit of contract workers or freelancers is that it is significantly cheaper than hiring a full-time employee. Factoring in the cost of hiring, HR management, training, benefits, and salary, a contract worker is a cost-friendly option.
World Wide Specialty Programs has always had a singular purpose – to design, develop and provide Staffing insurance products for the staffing industry. Our method is simple: track those changes; listen to emerging needs, and respond. We work with over 2,000 insurance brokers nationwide. We know the staffing industry better than anyone. Contact us today for more information about our staffing insurance programs.