Having a Contingent Workforce - Is it worth it?
Imagine if you did not have to worry about being understaffed. What if you had good viable candidates that were available, interested, and matched to your job? Using contingent, casual or contract workers offers many benefits. For specific assignments or short-term staff augmentation needs, it can be worthwhile to outsource, particularly if the cost of handling in house is expensive or overly time consuming to manage. With more focus on the gig economy, positions that in the past were considered to be full time employee (FTE) only positions are now becoming contingent and contract workers. Some of this change in acceptance is driven by the costs highlighted below:
- Recruiting and training talent costs between 6 to 9 months of the individual’s salary
- The average role takes 40-50 days to fill. That leaves your current employees picking up the slack in the interim and possibly racking up significant costs in overtime.
- Hiring an employee can cost in excess of $4K!
- According to the Department of Labor, it is common to pay 30% of an individual’s annual earnings if the relationship does not work out
This list is not all-inclusive but does help highlight some of the cost of managing employees. Consider the costs of offering benefits alone. Healthcare costs are rising at a rapid pace as any HR or benefits professional can tell you.
Another factor in the growth of contingent workers is that many workers are drawn by the flexibility it offers.
With a contingent labor workforce program facilitated by ICON, we take away issues related to recruiting, sourcing, hiring and managing the contingent workforce. We have a robust pipeline of pre-qualified candidates ready to go, and we take on the cost burden of employing an individual. Our consultants are some of the most qualified in the market and require minimal training, just a brief “ramp up” period.
Every company needs to be budget conscious and this is just one example of how you can cut costs without jeopardizing the integrity of your organization. Whether it is a short-term staff augmentation need in the finance field or an IT project needing supplemental resources or some other need, we are the answer to helping you control costs.
Click here to learn more about our staffing services.