During an unpredictable economy, organizations of all industries and sizes turn to contract and temporary employees to assist their business. Since every economic downturn in United States history, companies have strategically used a contingent workforce option to help them in the transition period from recession to recovery. This notable shift occurs because of the benefits associated with temporary and contract workers:
-
Flexibility – While organizations are slowly seeing an increase in demand, they don’t quite have the confidence to hire permanent employees. Temporary and contract workers allow a company to address their current needs without making long-term personnel decisions, reducing the chances of an endless and costly employment cycle.
-
Prevention of Overworked Staff Members / Overtime – Employees are now required to make up the work for laid off staff members, resulting in overtime and burnouts. Bringing in some extra help will boost the morale and energy of current staff members while eliminating the high costs of overtime expenses.
-
No More Unemployment Claims – The volatile market can result in the termination of employees. Because temporary workers are technically the employees of the staffing agency, unemployment claims affect the agency, not the terminating company. That means there’s no impact on an organization’s unemployment rating.
-
Eliminate Payrolling, Administrative Costs, and Benefits Spending – There are many hidden costs associated with keeping employees on payroll. When using temporary employees, all of these extra expenses are now the staffing agency’s responsibility.
-
Bringing in the “A-Squad” – Temporary and contract employees are often eager to work and want to prove themselves for future employment opportunities.
For more information about the benefits
of a contingent workforce, call Snelling today.