Contract Staffing: Changing up the Employment Game

Fact: Contract Staffing is one of the fastest growing industries.

Another fact: According to the U.S. Bureau of Labor Statistics, by 2020 more than 40% of the workforce will be contract employees.

Why? As operational costs creep up, more and more companies are looking for alternative solutions that provide them with a decreased burden or responsibility, i.e.: NO Worker’s Comp; NO Benefits; NO Unemployment= NO (or less) HASSLE. This lessened “burden or responsibility” occurs with Contract Staffing because the company is not the employer of record.

THE LONG TERM CONTRACT EMPLOYEE…

Traditionally, contract employees have been and still are hired for temporary positions to cover vacations, medical leave, short term projects, seasonal employment, etc. But the hiring game is definitely changing, especially with the advent of The Affordable Health Care Act. Laws such as this have definitely impacted the rise in long term contract hires. Companies close to reaching the threshold of 50 employees feel added pressure to maintain their existing employee counts, which can be counterproductive to growth, and are discouraging bringing on additional employees needed to meet rising demands. The solution to this issue can come in the form of a long term contract employee. Keeping in mind that the average length of employment is 2.8 years, a 2 year contract employee with the option for renewal is a smart option.

TRY BEFORE YOU “BUY”…

Contract-to-hire is also an increasingly popular option for the “try before you buy” solution. Companies are contracting employees for 3 to 6 month durations to make sure they are the right fit for their company before bringing them on full time to their payroll and benefits plan.

DON’T MAKE ASSUMPTIONS…

The Contract world is changing the interviewing game as well: The next time you are reviewing a resume, remember to dig deeper-and do not dismiss a candidate as a job hopper without asking and determining whether they were a contract employee! Chances are they might have had a contract stint or two in their career.

The employment game has definitely changed in the last few years, and will continue to evolve. Not only is now the hottest job market we have seen in years, but there are more creative ways than ever which employers can choose to run their businesses.

-Jennifer