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Simply put, a contingent workforce plan is an organized management of temporary resources.  At its core, it offers both cost savings and flexibility. When managed properly, a solid contingent workforce plan can take your business to the next level and even afford benefits to your employees. 

 

Benefits of hiring contractors - They are there when you need them most:

Utilizing contractors can help prepare your organization for known or forecasted increases and even unexpected opportunities; or shortages of workers.  This gives you more flexibility and subsequently helps you avoid losing dedicated employees.  

 

Contractors help in times of increased projects, summer and winter holidays, and unforeseen circumstances that could, without their presence, burden your employees and result in loss of productivity and overall morale issues.

 

Contractors are professionals, they come in for a specific job and their expectations are only to do the job they’re hired for.  They hit the ground running and often require minimal supervision or guidance. 

 

Addressing the all too common skills gap:

Contractors can offer specialized skills for a specific project minus the long term commitment. Not to mention, the skills they bring come with an ability to be quick and agile, to adapt to your environment and contribute to a rise in productivity and a healthy bottom line.  In addition, contractors by nature have experienced a multitude of companies; some well run, others not so much.  As a result they can bring a whole new outlook and mindset to a project and an organization.  From this new insight, innovation and inspiration can often emerge. 

 

Let’s talk about cost savings:

Depending on the status of the contractor you can realize significant savings.  Sure independent contractors are typically paid higher but not in comparison to the obligatory costs associated with employees.  When you bring in an independent contractor you have an hourly fee (and maybe additional work related expenses ie.travel), but with an employee, in addition to salary you have costs related to training and development, paid breaks/lunches, sick days, benefits and severance.   Of course some of these costs would be allocated for temporary contractors as per employment standards however, you would still benefit by having skilled resources on a temporary basis to assist in short term needs, and often at a lesser cost. 

 

Considering the risks:

I’d be remiss if I didn’t share the inherent risks in some Contingent Workforce Plans.  If you do not utilize a reputable third party agency/managed services provider like itec group you run the risk of compliance issues with payroll and taxes leaving you vulnerable to paying back pay, civil litigation costs; settlement costs and legal/tax penalties and fines if your contractor is deemed an employee under the law in your province. 

 

In short, you can realize your growth strategies for your organization through a well-managed contingent workforce plan that mitigates the risks of pseudo-employment, reduces liabilities, maximizes productivity and provides an optimized and compliant workforce.

 

For more information on how your organization can engage temporary workers with minimal risk, please connect with us for a consultative assessment of your needs. 

 

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