7 Reasons to Consider Contract Recruitment in the US

7 Reasons to Consider Contract Recruitment in the US

With the coronavirus outbreak, there has been a huge change in the corporate world. One on hand, businesses are trying to thrive in a dynamic setup powered by global digitization. On the other hand, individuals are highly preferring remote jobs. Employees now focus on work-life balance, and therefore, they look for jobs with maximum flexibility. The number of full-time employees is reducing drastically. This is creating a huge talent gap, making recruiters commit to the wrong hires. COVID-19 has affected each department tremendously, and hiring was no different. It brought so many changes in the hiring world, such as talent shortage, the arrival of video interview software, etc. 

The talent shortage is a reality that hiring managers encounter every day. Therefore, it is time to change the way recruiters hire. To overcome the talent shortage challenge, recruiters should start considering contract recruitment. It will be a strategic move for them to increase profitability. Contract recruitment has become the focal point in today’s time, and it is getting more popular day by day. There is no wonder why contract recruiting is becoming the growing preference in the USA. If you have any doubts regarding contract staffing, then read out this blog carefully to know why you should move to it.

What is contract staffing?

Contract staffing simply means hiring employees for short-term employment contracts rather than permanent full-time employees. It is a type of talent acquisition where employers hire candidates on specific contract terms – usually on an hourly basis. Contractual staffing includes independent contracts, part-time work, and seasonal work. If you are opting for contract hiring, there should be clear terms of the contract.

Why should you shift to contract staffing?

If you are looking for specific skills that you won’t be needing in the future, then contract staffing is the perfect choice for you. You can hire particular candidates for a particular duration of the project. Moreover, finding an independent candidate with a requisite skill set is easy rather than spotting a full-time employee. Individuals with valued skills prefer to work on an hourly basis to earn maximum in a shorter time.  Apart from this, there are many other reasons for moving to contract staffing.

1. Big savings

With a contract staffing arrangement, you save a great deal. First of all, employers don’t have to pay for the typical recruiting costs, such as statutory, compliances, payrolling, platform fees, etc. In addition to this, they don’t have to be a part of any benefits package. They can save a huge amount of money because they pay employees on the basis of their working hours. Moreover, there is no time off. Overall, it is a big saving for you.

2. Offer flexible solutions

If you pay attention to the trends and shifts in the market, you will realize that providing flexible solutions are essential. When companies face a financial downtown, businesses often skip their plans for permanent hiring. At that time, organizations opt for recruiting contract-based staff. Offering a contract-based solution in America simply makes your business more adaptable. Moreover, you can easily scale up and down to serve the changing needs of your clients. Keep in mind that investors always pay more when you show the ability to serve both contract and permanent hiring.

3. Better than outsourcing

Many companies opt for hiring agencies to outsource the work. When you don’t have the employee with the required skills in your organization and don’t even have the power to attract the right candidate, you always go for hiring agencies. However, these agencies will help you hire the right candidates, but you lose control. Moreover, there will be data security concerns. The best solution to overcome this challenge is hiring contract staff. These employees will be bound by paper terms, and you will have control too.

4. A larger market in the USA

Contract staffing has never been more lucrative in the USA. The staffing industry is dominating in the US, generating over 30% of the total global staffing revenue. According to the “Staffing Industry Analysts,” contract and temporary recruitment make up the largest share of this market. In 2021, the annual sale of this industry was around $157.1 billion. Contract recruitment is trending in the USA, and it is gradually getting popular throughout the world. Moreover, you will have access to a larger pool of talent when you opt for contract hiring. Due to the sheer size of this area, you can hire more quality candidates at ease. Many job seekers are shifting to temporary hiring because of its benefits.

5. No training hassles

Often organizations opt for upskilling for some special projects. Employers offer some special development programs to their employees to meet the needs of a new project. But these workers can leave the company at any time, and the training cost gets wasted. In this situation, contract staffing is the best solution. If employers need any specific skill sets for a particular project, then they must hire employees on a contract basis. Hiring contract-based individuals is better than internal upskilling.

6. Reduced risk

When you hire permanent employees, you give them commitment. You have to incur the onboarding and training costs. What if the employees you hired aren’t a great fit for the organization? All your money is basically wasted. But when you hire a contract staff, you reduce this risk. Before making any commitment, you have some time to evaluate workers’ performance. Contract staffing is the best way to know whether the employee will be a perfect fit for your company or not.

7. More profitable avenue

In 2021, the US Staffing Industry Forecast of SIA highlighted why contract staffing is more profitable than permanent hiring. As mentioned above, contract staffing requires less money and effort. Recruiters can easily find suitable candidates with the requisite skills for a particular project. As these candidates will have all the needed skills, you don’t have to invest any money in their training. Moreover, you can increase business productivity by using their skill sets in the right direction.

Summing it up

Hiring and firing permanent employees is a bad strategy that can cost your business. Recruiting on contracts for meeting the current needs is just plain business. Contract staffing is now highly popular in the USA and is getting prevalent worldwide as well. Candidates also look for jobs based on contracts. If you are a recruiter, you must consider the points mentioned above and start contract staffing.

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