Forward thinking companies today are crunching the numbers and realizing that utilizing temporary/contract employees can actually make them money, not cost them money. According to an American Management Association survey, 84% of respondent firms reported that they had realized payroll reductions as a result of temporary hiring, 79% realized health cost reductions, and 68% realized pension cost reductions.
The use of temporary workers is not a new idea, and in fact, 90% of companies report utilizing temporary services. In the past, the most common use of temporaries has been for vacations and temp to hire. But the work force has matured greatly.
The contingent work force of today consists of career individuals who have an average of ten plus years of specialized job experience. They range from software engineers, attorneys, paralegals, legal secretaries, programmers, and administrative office support. These unique "career contractors" are exceptional in their fields. They have to be to keep busy.
The Bureau of Labor Statistics has projected that the employment of temporary workers will increase 53% by 2006, and that growth in demand for skilled occupations (managerial, professional, and technical personnel) will outpace growth in demand for traditional clerical positions.
With this growing trend in a diminishing labor pool, how can employers incorporate temporary employees into their human resources strategy? Here are some innovative ways of utilizing contract help:
High turnover positions
Positions with turnover rates of fourteen months or less translate into lost dollars. Employers have found that outsourcing these positions has added to their bottom line.
Instead of turning away new business due to workforce constraints, consider hiring specialized contractors for unexpected special projects. This can give you the flexibility to expand your business model with minimal risk.
Special projects of ten months or less duration
Instead of hiring a new permanent employee and then trying to find new work for them when the project is complete, consider contract help. These individuals are focused on the project at hand and can move on at its completion.
Streamlining internal processes
Consider bringing in clerical support intermittently for filing, data entry, etc. This allows your key personnel to be more productive and cost efficient.
Take some time to review your current business practices. Analyze where you too can take advantage of a workforce that can save you money and help expand your business.