As many employers continue to adapt to an uncertain economy, a key strategy to consider for your 2023 hiring plan is the use of contract labor. The use of contract labor can be a strategic decision for companies looking to remain flexible and responsive to changing market conditions. Contract labor, also known as temporary staffing or outsourced labor, refers to the temporary use of a staffing firm’s employees to complete specific tasks or projects. They are not employees of the company, but rather are hired through a staffing firm.

Having a clear understanding of the benefits of contract labor is important, especially considering how it can affect day-to-day operations. Below is a breakdown of key benefits of utilizing contract labor in 2023 and beyond: 

Reduce Full-time Employee Costs and Risk

Compared to recruiting full-time staff, contract labor has several advantages. Benefits, including health, vision, and dental insurance, as well as 401K plans and PTO, are not the employer’s responsibility for contract workers. In addition to the cost savings, this can reduce a company’s exposure to employment litigation and eliminate the risk of workers’ compensation claims. Contract workers can also help balance existing full-time employees’ workloads, lower their stress or burnout risk, and lessen the need for overtime.

Decrease Hiring and Onboarding Time

Another benefit of contract labor is reduced time and effort spent on hiring and onboarding full-time staff. When a company uses contract labor, they can quickly bring in skilled professionals on a short-term basis, as needed, rather than going through the lengthy process of job posting, reviewing resumes, and conducting interviews. Saving time is especially advantageous when a company needs to fill a position quickly or has a temporary increase in workload.

Also, when partnering with a staffing firm, organizations gain opportunities for access to established networks of skilled professionals and valuable market and compensation insights.

Increased Flexibility

The flexibility of contract labor is one of its main advantages. Organizations can acquire experts or specialists when needed, which enables them to react quickly to shifting market demands and conditions. This can help companies adjust to economic changes and prevent overstaffing or understaffing.

Compared to recruiting full-time staff, the shorter commitment period is another positive gain of using contract labor in an unstable market. Without the long-term commitment of full-time employment, businesses may scale their labor up or down, as necessary. This level of flexibility can aid companies in managing expenses and resources more skillfully, especially during unpredictable economic times.

Also, adopting contract labor may give companies a cost-effective option to expand their workforce to meet present demands and provide a “trial” run before offering full-time employment. A “trial” period is especially beneficial in a shaky economy, when businesses might be hesitant to commit to full-time employees.

Providing Opportunities for Contract Employees

Employing contract labor also provides benefits for the contract workers themselves. These workers can learn valuable skills and gain expertise to add to their resumes, to ultimately access a more extensive range of occupations and sectors.

Adapt, Thrive, and Stay Competitive

In addition to these benefits, using contract labor can also help businesses stay competitive. By bringing in specialized skills or expertise on an as-needed basis, companies can stay up-to-date with industry developments and trends. Having access to these insights can help firms maintain a competitive edge and position themselves for success in a volatile economy.

The use of contract labor can also benefit the economy as a whole. How? It can provide opportunities for individuals who may need assistance, including students, caregivers, retirees, or those seeking additional income. These employment opportunities can help stimulate the economy by increasing these individuals’ purchasing power and access to new applied skills. 

Are you considering contract labor as a hiring strategy for 2023? Our team at Specialized Staffing Solutions can provide the resources and support to make the process as seamless as possible. Whether you’re looking to bring in specialized skills or need to scale your staff to fit your current goals, contract labor can be a valuable tool for success in an unpredictable economy.