Whether temp worker, seasonal worker, intern, freelancer or consultant, contract staffing offers the flexibility a company needs to meet the vagaries of changing markets while answering the challenge of finding the best people to do a job. This increasingly popular practice allows a firm to focus on its core business and outsource nonessential activities.
What Is Contract Staffing?
Contract staffing (sometimes called contract recruitment) allows a company to fill its needs on a temporary basis. In a contract staffing situation, three players interact:
- The client company is the organization with staffing needs.
- The staffing company supplies the contract employee.
- The contract employee is the person who does the actual work for the client company.
The staffing company provides workers based on the requirements of the client company. A contract employee is hired to do a specific task at a specific pay rate. The length of employment is the duration of the hiring contract, which can be extended by mutual agreement.
The hiring contract is between the client firm and the staffing company. The contract worker remains an employee of the staffing firm even while working at the client company. A contract worker does not become a regular employee of the client company and is not considered a permanent employee. The staffing company pays all salary and benefits due to the contract worker. Often, the staffing company performs all HR functions: payroll and taxes, benefits, onboarding paperwork, ACA compliance, etc.
Contract staffing is not the same as executive recruitment.
What Are the Benefits of Contract Staffing?
Organizations might turn to contractor employees for any number of reasons. A special project may arise that calls for a specific skill set for a short time. Markets are always changing, requiring the nimbleness contract employees offer. Contract staffing provides a way to evaluate a prospective employee. The benefits of contract staffing solve the age-old business conundrum of cost v. time v. quality.
A staffing firm saves on hiring costs. All the expenses associated with recruiting and bringing on a new employee is borne by the staffing agency. The staffing company handles all HR responsibilities. Using contract workers makes it easier to manage uncertain and changing markets. In addition, overall hiring risks are lower: If a contractor is not a good fit for the client company, there are no costs with letting that person go.
Contract staffing means a company can save time by quickly hiring new workers who can get up to speed in a short time. Contract workers are always available, which allows a company the flexibility to start a project when it is ready.
Finding quality people is one of the most difficult chores for any company. With contract staffing, recruiters provide people who have been screened for talent, professionalism and experience. Contract hiring is an excellent way to test a prospective employee and can turn a contract worker into a productive, full-time employee.
The benefits of contract staffing are many and varied. Go HERE to learn how to take advantage of this versatile hiring method.
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