What Is Contract Staffing And Why Is It Useful?

A recent boom in contract staffing services has made it a valuable tool for businesses of all shapes, sizes, and industries. It has allowed them to hire talent periodically for a specific set of tasks that may be sporadic. This type of job hiring enables businesses to outsource their projects to workers or freelancers on an as-needed basis. Both employers and employees can take advantage of this new dynamic and reach out to the right people quickly with minimal administrative overhead & risk with no long-term commitment.

Understanding the entire picture of contract staffing can help you make well-informed decisions while taking this approach to seeking the right fit for your requirement. Read on to discover more about contract staffing and its benefits for organizations.

So, what is contract staffing?

Contract staffing has been around for years, but the recent introduction of on-demand technology has brought new opportunities to those looking for contract labour. It's a kind of employment arrangement where temporary employees are hired for periods ranging from a few weeks or months to years or decades (depending upon project requirements). It can help employers gain the abilities of a permanent employee at a fraction of the cost and effort. The method is a great way to deal with labour shortages and is widely adopted by leading industries worldwide.

Type of contract staffing

Part-time contract: In this contract, you bound employees for fixed working hours + fixed pay.

Fixed-term contract: Here, you hire people for a project-basis requirement that may/may not extend over time. They have fixed pay but no commitment for future projects.

Agency staff: In this case, a few sets of people will be employed for your requirement by an agency that has hired them. You pay the agency, and they pay the contractual staff.

Zero-hour contract: Zero-hour contracts have no specified working hours or project duration. You can employ this approach on an on-call basis for urgent projects and requirements.

Freelance Contract: Have a strictly in-demand skill set requirement? Freelance contracts should be your go-to approach. You can set the contract based on specific hours/days/projects.

Advantages of Contract Staffing as a Workforce Strategy

1. Flexibility & Cost Efficiency

Contract Staffing is a flexible and cost-effective way to recruit talent. It's a great alternative to the traditional hiring process, which can be time-consuming, expensive, and cumbersome. The flexibility of contract staffing allows you to tap into a pool of candidates for your job requirements, whether you need a quick fix, a long-term solution or something in between.

In addition, contract staffing can be an effective recruitment strategy because it is cost-effective. There are no upfront costs and no hidden costs associated with this type of recruitment strategy. You only pay when you find the right person for your project or role.

2. Access to a larger talent pool of qualified candidates

With contract staffing, you can hire any skill set. From IT support to accounting or marketing, you get access to a diverse talent pool of high-level professionals with specialized skills. Furthermore, it helps eliminate redundancy within the organization because you get access to the best talent present in the market.

Additionally, this eradicates expenses associated with full-time positions and benefits packages. This means that you can find the right candidate with ease and efficiency.

3. Maximize your service capabilities & scale your business

Contract staffing can help you scale your business when you need extra assistance in the short term or when seasonal demand increases during the holidays. It is a great way to maximize your service capabilities and allows you to offer flexible working hours and deliver services at short notice. You can provide services on demand, as needed, and at a lower cost with a flexible workforce.

4. Reduce business risks and liabilities

Contract staffing is a hiring model where an employer hires a third party to fill the position on its behalf. The contract employee works in a certain direction and will not have any legal rights such as unemployment benefits, sick leave, vacation pay, overtime pay, worker's compensation, etc. You don't have to dedicate a budget to screening, training, and managing these employees. Thus, this type of staffing helps in reducing business risks and liability.

5. Breaking the 'Location' barriers

The most promising advantage of contract staffing as a recruitment strategy is that it breaks the location barrier and allows employers to hire the finest talent worldwide. It's a great way to attract and retain top-tier talent looking for flexible work arrangements in an agile environment. No matter where you're operating from, you still can get in touch with a resource which is 2000 miles away from your location and vice versa. Thus, allowing employers to tap into a new talent pool that they might not otherwise have access to.

Pro tips to get started with Contract Staffing

1. Define your staffing needs

Choose the right size of the contract. You need to know how many people you can afford to hire — and how much they're worth. Do your research.

2. Talk to past employers/organisations

It's crucial to get their perspective on their experience with an agency you're planning to connect with. What kind of work did they do? How did it go? How did they like working with this agency/firm? These questions will help you determine how likely it is that your potential employees would be able to fit into your company's culture and meet its needs.

3. Ask questions

Make sure you understand what is being offered before signing any contracts or making any payments or commitments with any agency or company (like deposits).

While the above use cases highlight some major benefits, they are just a few examples of how contract staffing can work to your advantage. Whether you're looking to fill an internal project, you need contract employees to meet your future staffing needs, or simply want to offer additional opportunities to your existing team, there may be a perfect staffing option out there for you.

At PERSOLKELLY, we have been providing flexible yet comprehensive Workforce Solutions that help Clients with end-to-end contract workforce management from talent acquisition to exit with a keen eye on compliance and service.

Write to us for a call back at info_th@persolkelly.com.