Your business is up. Congratulations!
But when the demands of your workload outstrip the abilities of your core staff, you face a classic staffing dilemma:
Should you hire or bring in qualified contingent staff?
The question itself is pretty simple, but choosing the best option for your business is a bit more complex. The good news is, you have lots of options – and a partner like A.R. Mazzotta to help you make the right choice.
Today, we’re providing a simple overview of the advantages and applications of both temporary and direct hire employees. Consider your current situation, as well as your strategic goals, to evaluate your personnel needs and decide which type of worker is right for you:
Temporary / Contract Employee
There are many benefits to bringing on contingent workers to help augment your full-time workforce. These include:
- Saving money in the recruiting and hiring process, including the cost of making a hiring mistake.
- Reducing the cost of health benefits and taxes as well as workers’ compensation insurance, overtime pay and vacation pay.
- Accessing specialized resources for discrete projects.
- Improving focus and productivity of your direct employees, by offloading time-consuming or labor-intensive tasks.
- Offering protection against an economic downturn or other market forces that could adversely impact your organization.
- Increasing flexibility (which can also boost profitability) during seasonal upswings in demand or other types of workload fluctuations.
- Easily remedying overwork and the burnout it causes in your core staff.
In addition, most contract and temporary staffing firms not only recruit qualified workers but also help companies screen and train these employees.
Direct Hire Employee
Hiring new full-time employees might be the best solution if you are looking for:
- Loyalty and commitment. Full-time employees typically are more loyal than independent contractors or temporary employees. Loyalty can result in higher levels of productivity, but it is not a given. To keep direct employees committed to you, create programs that recognize their accomplishments, provide opportunities for growth, and make employees feel valued and appreciated.
- Greater control. When you hire an employee, you get the advantage of being able to completely control and direct that individual’s work during work time, to train the person in the way you want the job done, to determine how and when work is performed, and to require that person to work only for you.
- Diverse employees who can handle multiple roles. In smaller companies, employees will often perform a variety of job functions. They become jacks-of-all-trades, so to speak. Having employees who perform a variety of job duties on the fly to meet your company’s changing needs can be a huge advantage.
- Speedier work flow. If your demand remains steady, having dedicated employee resources can result in quicker and more comprehensive deliverables than if contract / temporary labor is used.
- Clear lines of authority. With employees, both your managerial and legal obligations are clear. With temporary or independent contractors, you must abide by “joint employer” rules and work to avoid employee misclassification issues.
Still not sure which is the right option for you? Call A.R. Mazzotta to schedule a free workforce consultation. Our experts will meet with you to learn about your business, weigh your options and make the right staffing choices.