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Why You Should Consider Hiring Contract Employees

Posted on May 30th, 2016 Read time: 2 minutes

Hiring the right worker for the right job is a task all employers undertake at some point. Learn reasons why hiring a contract employee may be more reasonable than hiring a traditional employee.

  • Scale Your Workforce

Having a workforce that changes in size drives your company’s revenue. You pay for services delivered and nothing more. You can change your workforce depending on the number of projects going on at one time. Because you’re more flexible in accepting big opportunities by adding more resources, such as contract workers, you eliminate the need for turning away work. If business is slow, you can trim down your workforce and scale back your costs. 

  • Increase Company Growth

Hiring contract employees helps you tap into a strong network of providers for growing your business. You’ll always be able to take on new challenges utilizing reliable, trustworthy contractors on an as-needed basis while serving your clients in more ways than your competition. Clients will continue using your services because you fill their needs and provide more value than any other company.

  • Maintain Flexibility

Some projects are better suited for contractors than employees. When staff members are unavailable, demand for work is uncertain, or a project requires specialized skills, hiring a contract worker is best. Since independent contractors handle their own training, they start work immediately and eliminate any waiting period for production. You won’t be paying workers for ramp up time by utilizing contractors’ services when needed. Also, if one contact employee doesn’t work out, you won’t have an issue finding another. 

  • Save Money

Profit margins matter more than the size of your organization. If your billable time of current full-time employees is below 85 percent and your profit margins aren’t at least 50 percent, you’re better off keeping your costs variable by hiring contract workers. Independent contractors pay their own health insurance and taxes and use most or all of their own materials; those are expenses you won’t be taking on yourself. Focus on increasing your profit margins while utilizing contractors if applicable to the project. 

Hiring contract employees for your business needs saves you time and money. For additional help in both those areas, contact the experts at Innovative Employee Solutions today!

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