The Benefits Of Hiring Contingent Workers
December 10, 2021
Contingent workers are temporary employees that do not enter a long-term contract as permanent employees and only provide their services on-demand and often for a limited duration or project. Contingent workers provide firms flexible operating power, which is the ability to scale up and down if required. In the case of businesses that require extra staff during peak seasons of the year, or talent with a specific skill set needed for a particular project, contingent workers have been a critical component of business operations for decades for the following reasons.
1. Address the skills shortage
Numerous businesses are finding it increasingly challenging to recruit people with critical skill sets in today’s market. Thus, many organizations go to the contingent market to quickly cover shortcomings in their workforce’s skills.
Leveraging the gigantic economy and recruiting contingent workers is a terrific approach to enhance your inner abilities since enterprises may guarantee their access to experienced pro with specific skill sets to accomplish project-by-project work effectively.
2. Maximize flexibility
Organizations must be adaptable in today’s environment in order to react to constantly changing and unpredictable situations. Contingent workers, due to the nature of their short-term agreements, are an excellent match for this demand since they do not have the ties of a long-term contract, as do regular employees.
A contingent workforce is a resource that a company may tap into as and when it is required. Contingent workers may be used to cover gaps in the workforce if a company has a sudden increase of workload. If a particular job emerges, they will be able to locate a contingent worker who has the necessary skills. Then, when a term of collaboration comes to an end, the business’s obligations to the freelancer come to an end as well.
3. Diminish tax liability
Generally, a company’s duties for a contingent worker are less stringent than those toward an official employee. Employee perks like insurance paid, leaves or anything else of the kind aren’t something that’s demanded in most cases. As a result, you are not required to withhold or deposit payroll taxes, as well as pay equal employer taxes since contingent workers are responsible for their own tax liabilities. Furthermore, the diminished tax liability can reduce the workload for the HR department and prevent business from unworthy tax errors.
4. Save money
As companies usually sign termed contracts with contingent workers, they do not have to provide employee benefits such as social and health insurance, profit sharing, and paid time off and paid holiday entitlement. Thus contingent workers
are significantly more cost-effective than traditional permanent recruitment. In addition, for firms that often encounter short term, specific and urgent projects, the use of contingent workers, when combined with the use of permanent employees, has the potential to save a significant number of expenses. Developing current full-time employees who have not mastered the specific expertise required to complete the projects will take time, effort and money while recruiting a new full-time expert will certainly cost companies high salaries and attractive benefits. In those cases, contingent workers who specialize in the jobs, with a short-term employment contract, can perfectly fill in the lack of companies’ expertise while save those firms a ton on human resource budgets.
Because of the above benefits, more and more businesses use contingent workers. With that demand, more and more people decide to join the huge market of contingent workers. Therefore, finding the right contingent workers for recruitment needs can be a challenge for businesses. Let Talentnet lend you a hand by connecting the best talent and best fit for your business. As a leading human resource consulting company in Vietnam, Talentnet can meet the most difficult requirements with a large and quality recruitment network, which has been built over many years of experience. Contact us for more information.