With a slowly recovering economy, employers have been cautiously hiring again. However, some companies have chosen to fill needed positions with temporary or contract/freelance talent, rather than full-time labor. According to some experts, this trend could become the new reality.
Without a single measurement of the number of individuals working on a contingency basis (The U.S. Department of Labor stopped tracking this figure in 2005 due to budget cuts), we can only speculate that the number is growing, based on the prevalence of temporary, contract and freelance positions available on job boards and the growth of the temporary staffing industry in Indiana and the United States.
At That’s Good HR, we recruit and interview potential temporary candidates all day, every day. Some of the reasons why we believe employers are hiring more contingent (i.e. freelance, temporary or contract workers) include:
- To grow and hire without risk: If a company seeks to expand, hiring temporary staff during the expansion allows them to manage growth without the stigma of a reduction in force if the company’s growth does not continue. The company always has the option to hire those temporary workers permanently, if they choose, allowing them to determine whether the candidate is a good fit for full-time status.
- To keep costs low: Contingent workers require less overhead with no sick or vacation days, retirement accounts or health coverage, so a company can boost its bottom line with a smaller full-time staff. At That’s Good HR, we handle our clients’ hiring process, for them, saving them time, as well as the cost of hiring (taxes and benefits) when they use our temporary staffing services.
- To accommodate a flexible workforce: Many employees prefer to work part-time or to telecommute, so a temporary position is an ideal fit for these individuals. On the employer side, our clients often hire us to fill temporary positions for circumstances such as maternity leave, seasonal demand, or short-term projects. As an added benefit, employers who hire telecommuters or contract workers can reduce the amount of team office space needed to run the business.
- To leverage a variety of skill sets: Rather than trying to find an employee who meets all of the skill and experience requirements of a given position or project, companies can fill that void with temporary or contract employees and sometimes get the job done more efficiently or effectively at a lower overall cost.
Benefits of Being a Temporary Worker:
For job candidates looking for full-time employment, the contingent workforce trend may seem discouraging on the surface. Many individuals have sought temporary or contract positions out of necessity, to supplement their incomes until finding a permanent job. While these people miss out on the stability of full-time employment, the option of temp or contract work can help them maintain their skill set and boost their resumes while in-between jobs. The temporary positions themselves offer greater flexibility, as well as the opportunity for future full-time employment with those companies.
At That’s Good HR, since we specialize in temporary staffing services in the Indianapolis area, we are excited about this employment trend, and we are ready to help both the employers and candidates find the ideal fit for their situation.