What are the benefits of contractor staffing for businesses?
Louise West

4 minutes

What are the benefits of contractor staffing for businesses?

Our workforces are changing rapidly. Fluid and flexibility have become the main descriptors of a future-proof business. The reliance on contract-based experts is increasing. More employers are seeing the value of utilising non-permanent resources and more individuals are choosing a flexible employment route to suit their needs. 

But for those yet to truly tap into highly skilled contractors to deliver short-term projects, you might be wondering exactly what the contractual staffing benefits are for your firm.

Here are just a few:

Wider skills availability

With ever changing business goals, HR departments are facing increasing pressure to source new skills that aren’t necessarily available in existing talent pools. Contractor staffing solutions can be hugely beneficial here, particularly where expertise is in short supply.

If we take tech skills as an example, there has long been a gap between supply and demand of specific digital abilities that has made permanent resourcing a challenge. However, there are significant numbers of tech contractors that are looking for part-time project work. Bringing these temporary workers on board when needed means that the organisation can access the skills it needs, when it needs them.

Perhaps more importantly, though, bringing these external experts in can really help improve and develop the knowledge within the business. If utilised correctly, contractors will often impart valuable information to the permanent workforce that can help build internal skills and processes. 

A balance of flexibility and speed

Flexibility is the key phrase for candidates at the moment, with wider talent pools vying for a more adaptable way of working. But it’s not just the workforce that will reap the rewards of more fluid employment options. For HR and procurement teams, greater flexibility means that the business can remain agile in its approach to acquiring skills which in turn better enables the firm to adapt to changing economic trends. Perhaps more importantly, though, contractor staffing solutions offer greater speed in hiring

Limited long-term impact on costs

While full time employees are hugely valuable for day-to-day business operations, contract workers can, more often than not, prove more cost effective. When hiring a full-time member of staff, employers absorb additional costs on a longer-term basis. Aside from the regular salary commitment, there’s also the financial impact of training, upskilling and on-boarding. That’s not to say that each of these aren’t important or aren’t required for contractors, of course. But with temporary employees, businesses aren’t committing to increased overheads on a permanent basis.

In the volatile economy that we’re experiencing where change is the new normal, this is particularly beneficial. For many companies, the skills that are needed now are unlikely to remain the same in the immediate and long-term future. 

Seasonal demand and project support

In line with some of the benefits outlined above, contractor staffing is valuable where there is an expected temporary need for additional resources or skills. For some sectors this may be a seasonal change in business activity, but for most, it will likely be one-off projects that need extra support to get off the ground.

If we continue with the technology example, where a company might be implementing digital transformation across the business – such as new infrastructure to streamline business operations – then contractors can fill the staffing gaps that may exist to ensure this is effectively rolled out. And what’s particularly valuable is that the employer can pick and choose exactly what type of resources are temporarily invested in. If you have the in-house capability to deliver the project, but need the strategic guidance from a more experienced expert, then you can seek out a contract professional to drive the project. 

Manage your external workforce to maximise the benefits

Clearly there’s a wealth of contractor staffing benefits and we have covered just a few of the top reasons why contractors can be valuable for a firm. However, if employers and HR teams are to really make the most of this talent pool and any contract staffing services, complete transparency is needed across the supply chain.

Staffing agencies can, for example, help support the supply of contractors. But how these individuals are engaged, at what cost, where they can be redeployed and, critically, whether they are operating compliantly, is naturally a key concern for HR departments and procurements teams.

That’s where partnering with a Managed Service Provider (MSP) can add real value. A good MSP can manage the temporary worker recruitment for an organisation and is responsible for the end-to-end management of the contingent workforce. Utilising a Managed Service Provider is one of the most effective, cost-efficient ways for a business to manage its contingent workforce.

Want to know more about the business case for outsourced MSP services? Access our guide today by completing the form below

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