Talent Tip #16: Contingent Workforce Is a Powerful Tool in Recessionary Times

Brought to you by SourceRight Solutions

Cutting your workforce to save money may be necessary, but it’s likely to have a big impact on your employees and customers. One way to mitigate the negative effect is to hire contingent workers to fill important roles. With unemployment high, the talent pool is deep and varied. Contingent hiring can provide benefits now and in the future, including:

1. Lower costs: Unlike direct-hires, temporary or contract employees work for the staffing agency. That reduces administrative costs, as well as benefit costs that are typically built into a salary.


2. Scalability: Hire only who you need when you need them. When the project ends, so do the costs. Moreover, you can zero in on the most critical skills without having to consider the long-term demand for those skills.


3. Flexibility across skill levels: From lower-skilled volume positions to high-level executive roles, you can handpick the experience level you need. One current trend involves bringing in high-level professionals to plan and execute major changes, from reorganizing departments to reviewing the compensation system. When the project is done, the interim can make a clean break. This helps to maintain harmonious relationships among permanent staff.


4. Screen potential hires: Get a leg up on hiring when business picks up. You’ll know if your contingent workers have the skills and work ethic you seek in permanent hires. You will also have saved the recruiting and training costs--which can be substantial.
   

In tenuous times, contingent hiring can keep your business competitive by filling key positions and reducing the pressure on your full-time employees so they can stay focused and productive.