Currently, companies are facing a significant amount of economic uncertainty. While inflation is cooling, the rate is still far above norms. Additionally, the risk of a recession looms over most businesses, and a recession inherently brings financial challenges with it. Then, there are the workforce-related strains that also occur during periods of economic uncertainty, particularly the financial considerations.
Often, personnel costs are one of the biggest budget line items for an organization. As a result, chief financial officers (CFOs) are having to look for ways to adjust the company’s approach to workforce management to ensure it can weather any potential storms. For many, this means looking beyond traditional permanent hiring. Here’s a look at why savvy CFOs are turning to contingent staffing to weather uncertainty.
Cost Savings and Agility
One of the most significant benefits of using staffing companies is cost savings. Staffing companies can help CFOs reduce the cost of recruitment, hiring, and training employees. Additionally, using a staffing company can provide flexibility in staffing, allowing companies to scale their workforce up or down based on their business needs. This flexibility can help organizations avoid overstaffing which can carry heavy financial costs or understaffing, which can prevent organizations from capitalizing on new opportunities.
As organizations face uncertainty, the ability to scale up or down quickly is critical to success. Contingent staffing provides the flexibility to bring in additional workers for specific projects or peak seasons while also ensuring that companies can reduce their workforce quickly if there’s an economic downturn.
Access to Specialized Skills
With contingent staffing, companies can access specialized skills and expertise that may not be available within the organization without needing to hire a permanent team member. This is particularly valuable for projects that require specific knowledge or experience that isn’t otherwise required by the organization. The contingent workers can be hired for short-term assignments to fill any present skills gaps and then released when the project is complete.
Reduced Risk
Contingent staffing can also help reduce risk for companies. For example, during times of economic uncertainty, hiring permanent employees is particularly risky, as any potential for future layoffs could result in higher unemployment obligations or similar costs. Contingent staffing allows companies to bring in workers on as needed without the risks associated with permanent hires. The employees remain on the staffing firm’s payroll, so the recruitment agency is the one that takes on any unemployment-related responsibilities.
Better Utilization of Resources
Companies can better manage their resources by using contingent staffing. Instead of having permanent employees with specialized skills that may only be required periodically, organizations can focus on widely needed capabilities when building their core team. Then, they can bring in contingent workers for specific projects. Along with saving resources, this can reduce the burden on permanent employees, ensuring they aren’t overworked during high-demand periods.
Ultimately, savvy CFOs see the value in contingent staffing, so they’re increasingly turning to it to weather the uncertainty that comes with the current business and economic climate.
Want to discuss a strategic contingent workforce plan?
If you’d like to learn more about how you can leverage contingent workers, A.R. Mazzotta can help. Additionally, if you’re ready to fill a short-term or long-term position, A.R. Mazzotta offers flexible, streamlined hiring solutions for practically any need. Request an employee from A.R. Mazzotta today.