It goes without saying that companies draw their entrepreneurial force from their workforce. Now when we use the word “workforce”, we don’t necessarily mean those who are on company’s payroll. There is a separate concept that seems to gaining a lot of ground off-late and we call it contract staffing.
Contract staffing, in its simplest form, is for those companies who are not entirely open to the idea of permanently hiring people since they don’t have the financial might for the same, and as well as for the companies that may have floors filled with employees but a need arises to get on board some more people for a specific project or time period. Either way, contract staffing does make for a healthy practice since this opens up a new chain of possibilities for enterprises.
Let’s look in a nutshell why there is a growing traction towards contract staffing:
Higher Expertise on Board
This is not to say that your in-house employees are not experts enough, but there are several instances during a project or during any given time duration when you fall short of the right resources, and you need to fill in the blanks for just a time being. That’s where you can contract the job out to people who have skills learned over a number of years in the relevant domain. These can be professionals who have gained proficiency in a particular area that suits your project.
These high-caliber individuals also bring in a fresh perspective to solve problems and ideate from a different strategical ground that you may not have explored so far.
One challenge that most employers grapple with is having to deal with varying cost-to-company in regards to single employee. These may come from overtimes, working on weekends, or some other unique factors. In addition to that, there are various times when companies are facing a dry spell and people are not assigned to any project but they are entitled to their monthly wages.
In both the afore-mentioned aspects, companies make a lot of savings. To begin with, the contract workers work on fixed costs. They are hired on per-project or per-hour basis (and it’s decided in advance for how many hours you will be paying them).
A Clear-Eyed Idea of Who Should be Assigned What
With permanent employees, companies are always left to wonder if a particular task is suited to the skill set of a particular individual. And this has potential discrepancies since decisions are not rooted in certainty. With contract staffing however, you are getting only those people on board who you know are totally in sync with the nature of the project.
Clearly, contract staffing has several advantages over the more traditional practice of permanent staffing. The latter has its own incentives and thus, it entirely depends on the requirement-set of companies on whether they want to completely do away with permanent staffing or whether they want their organization to have a healthy mix of both.