As more companies become confident an economic downturn is on the way, it becomes more attractive to staff your organization with contract workers to keep up with changing demand for your products or services.
What is a Contract Worker?
Contract workers are individuals who are hired on a temporary basis for a fixed term or project, rather than being hired directly by an employer in a full-time position. They are often hired through a staffing agency, such as Kinect, who acts as an intermediary between the companies looking for workers and the job seekers looking for employment.
Why Companies Use Contract Employees During a Recession
During a recession, many companies face financial pressures and need to reduce their headcount. However, these companies still have work to be done, and this is where contract workers come in. By hiring contract workers, companies can get the work done without the long-term commitment of hiring full-time employees. According to a recent article in Fortune magazine, recession fears in the U.S. have caused demand for contract workers to surge by more than 25%.
In addition, contract workers cost less than a full-time employee since they are only employed for a defined period. Additionally, in many cases full-time employees are more costly due to the additional costs of their healthcare and other employee benefits.
Employing contractor workers enables you to complete projects efficiently without the burden of hiring and managing full-time employees. Once you’re ready to hire full-time again, you can quickly transition your top performing contract worker to a full-time team member.