Forklift operator in warehouse

6 Reasons to Hire a Contingent Workforce Now

by James Howe, on October 06, 2020
Fluctuating restrictions on businesses coupled with seasonal demands make it almost impossible to know what the next few months of labor needs will look like for employers.

Many businesses have already gone through several hire-and-fire cycles over the last few months, incurring both the expense and emotional toll of bringing on employees only to have to let them go after just a few months or weeks.

A contingent workforce is an excellent solution for businesses who have been experiencing this type of rollercoaster or those that are just uncertain on the long-term growth of their business.
Here are six more reasons to consider temporary staffing while we ride out the uncertainty of today’s economic landscape:

Flexibility - Times are unpredictable, and using temporary labor provides a great deal of flexibility to deal with the peaks and valleys of your customer demands. Once a surge subsides, it's easy to disengage temporary workers, and the staffing company is responsible for any unemployment owed to the individual. The agency is also likely to find that individual another position quickly.

Scalability - Temporary staffing companies are set up to quickly recruit, screen, interview, process new hire paperwork, and onboard candidates in large numbers. Additionally, they have robust databases of available candidates with a wide range of skills, which  means they have candidates that are already pre-screened, qualified, and have background checks, making it easier to quickly add five, 10, 20, or more employees.

Cost-Effectiveness - When comparing the cost of hiring on your own versus the cost of using a Staffing Company, there are both direct employee costs like health benefits, workers' compensation insurance, payroll taxes, and the employee's hourly wage along with indirect costs like help-wanted advertising and the time it takes to review resumes, process applications, administer pre-employment screens, and complete the new hire's onboarding paperwork that should be considered.

Oftentimes it’s difficult to quantify all of your hiring costs, which is why using a Staffing Company can be more cost-effective and easier. A staffing company builds all employee costs into their hourly bill rate. And their expertise in all aspects of hiring means they are more efficient than what most companies achieve independently.

Reduce Bad Hires - A temp-to-hire option allows you to try out individuals and make sure they are a skill match for the position and a cultural match for the company. Most staffing companies offer the ability to convert a temporary employee onto their client's payroll after that individual has worked a set number of hours.

Access to Talent - Temporary staffing companies are excellent at recruiting because that's all they do! That focus means they can find individuals with unique or high-demand skillsets, such as skilled machinists or accountants during tax season. Staffing companies use various resources to recruit, such as employee referrals, word of mouth, community groups as well as direct recruiting by reaching out to candidates who may be passive job seekers because in demand candidates are often not searching job boards. The additional recruiting resources used allow the staffing company to find talent that companies can't typically find on their own.

Market Experts - Temporary staffing companies often work with hundreds of companies, giving them an excellent understanding of market dynamics, unemployment rates, talent shortages, recruiting trends, and market pay rates. This big-picture background is essential when hiring for a specific skill set or hard-to-fill position. Using a temporary staffing company to help you baseline your jobs, the skills you need, and your pay scale can help make your company an employer of choice for candidates in the market.

If you’re facing staffing challenges, LandrumHR Workforce Solutions may be able to help. We hire for a wide range of careers and skills and can supply the workforce you need on demand.

Contact us today for more information.

James Howe

Jim Howe is the VP of Workforce Solutions for LandrumHR. He has more than 20 years of leadership experience in the Staffing Industry, having worked for a couple large national organizations. Jim’s expertise has been in building teams, growing revenue and profitability, while working in tandem with his clients to implement workforce management solutions focused on attracting, engaging and retaining the right workforce.

View more blogs by James Howe