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The contract workforce in the US is growing

Posted on September 12th, 2014 with No comments

When permanent, full-time hires aren't an option, many organizations turn to an employer of record to help deliver the manpower services they need. Contract workers are a valuable asset to companies that want competent and skilled employees, but only on a temporary basis.

A recent press release from the Michigan Department of Transportation revealed the organization is looking to bring on a number of contractors for the winter season, beginning in October and ending in March of 2015. Many of the opportunities are manual labor positions related to snow and ice removal, pothole repair and other tasks required during inclement weather.

This kind of hiring helps to ensure that operational goals are met, while also resulting in tremendous cost savings for an organization.

A recent report from The Oklahoman highlighted some of the many financial benefits gained from companies working with an employer of record for supplemental staffing help. The biggest advantage is in not having to provide health insurance and other benefits typically afforded to permanent staff.

Full-time workers don't just cost companies money with respect to salary. However, when working with a staffing agency, the fee is usually a negotiated flat rate for services. This allows an organization to fulfill its service obligations while paying just a fraction of the cost. This is a trend that is growing in popularity in the U.S.

The Oklahoman, citing data from the Bureau of Labor Statistics, revealed that 2.7 million people in the U.S. are currently working through an employer of record. As more organizations uncover the associated financial benefits of this kind of hiring, it's reasonable to expect that many more companies will begin turning to supplemental staffing agencies to fill positions that they may not want to make permanent hires for.



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