The modern business model is changing as the job market remains competitive. It is increasingly difficult for enterprises to fill open positions and find skilled talent. As a result, many companies are turning towards project-based staffing to remain agile and competitive.
What is Project-Based Hiring?
Project-based hiring is when a company engages independent contractors for projects that require additional resources or specific skills. These workers are bought on for a limited time to complete work defined in a contract. Project-based staffing is a great opportunity for companies to change the way they source labor.
5 Business Benefits of Project-Based Hiring
1. Access to the best talent and skills
Today’s top talent are moving away from traditional employment and towards an independent contracting model. Many seasoned professionals are using their experience to build businesses centered around their expertise.
This way of working offers them more control over their career and more flexibility in their non-work life. In order to find the best, skilled talent enterprises should look to the independent workforce.
Up next: Achieve Workforce Agility by Engaging Independent Contractors
2. Get to market faster
Independent talent are experts in their fields and have a wealth of real-world experience. Because independents are engaged for a specific initiative, they are fully dedicated to achieving company goals and meeting the deliverables outlined in their contract. This allows companies to get to market faster with new ideas or additional projects.
In order to quickly engage this talent, many managers use direct sourcing. Direct sourcing involves finding talent for an open project or role using internal resources rather than a third party such as a staffing company. With a direct sourcing strategy in place, managers can build talent pools or a virtual bench that can allow them to deploy contractors in days, if not hours, after a role is opened.
A talent pool is a group of independent professionals categorized by skill, location, and role. This makes it easier to view, onboard, and engage talent quickly. A virtual bench is a group of known talent that has already worked with your organization. These workers are ready-to-deploy when a project need arises.
Learn more: 6 Ways to Build a Virtual Talent Pool
3. Better manage turnover
We are in the Great Resignation—the power is in the hands of the worker. To complicate matters, employee tenure is the lowest it has been since the 80s: just 4.1 years, according to the Bureau of Labor Statistics.
Project-based staffing allows companies to build a modern business model that blends independent contractor talent with employees. This model helps companies keep access to those top skills, because top employees won’t stick around forever.
Check out: 3 Ways to Make Direct Sourcing Part of Your Workforce Management Strategy
4. Flexibility in cost models
With a possible recession pending, organizations need to be judicious with cost expenditures. A project-based staffing model offers many opportunities for cost savings. Independent talent allow companies to scale up and down as needed to meet market demand without adding heavily to their bottom line.
In many cases, outsourcing talent on a project-basis is simply more cost effective than hiring a permanent employee who may not be needed once the project is finished. Independent contractors are 100% utilization—they provide the talent you need without the demands of continued employment.
Up next: Engaging Independent Contractors: 10 Do’s and Don’ts to Guarantee Project Success
5. Increased ability to focus on the future
There are currently 51 million people working as independents. This population has an expected 38% growth rate over the next five years. Project-based staffing gives you the flexibility to grow and innovate when you can do so, or scale back when budgets get tight.
Simply put, independent contractors increase productivity, meet workload peaks, and get tasks done more quickly—if you’re not engaging this pool of workers, you may be putting your business at disadvantage.
Learn more: How to Source Consultants for Projects
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