5 Reasons to Hire Independent Contractors
There are nearly 42 million independent workers in America today. This growing workforce has increasingly become a vital source of talent for businesses. The shift to a project economy, combined with technological advances, has not only contributed to the ease of leveraging independent contractors, but it has also expanded the breadth of specialized talent that can be engaged.
The question facing American enterprise is not if they will use independent contractors as part of their talent pool, but how they will engage this vital resource. Here are five reasons you should consider engaging independent professionals.
1. The Project-Based Economy is Here to Stay
The move from employee to consultant has been accompanied by a parallel move on the part of employers, both large and small. The traditional model of hiring long-term employees is rapidly giving way to a profound paradigm shift that involves outsourcing on a project-by-project basis.
Not only does this shift entail natural financial incentives, but it also provides employers the flexibility of securing specific expertise on an as-needed basis. Companies that depend on independent contractor engagement providers like MBO Partners are more likely to have broader choices for accessing specialized talent. The right talent can make or break your company’s competitive advantage, so having a human capital strategy that includes a safe and easy way to engage independent professionals is a must.
2. Financial Benefits are Substantial
In today’s competitive talent market, the price of employment is rising. Whether lucrative or basic, the benefits packages that accompany traditional employment can quickly become prohibitively expensive. In many cases, outsourcing talent on a project basis is more efficient than hiring a permanent employee who may become a burden after the project is completed. Independent contractors can provide the talent you need without the demands of continued employment.
3. Risks are Manageable
While the possibility of misclassification audits can never be completely eliminated, when properly managed, companies can enjoy the benefits of utilizing independent talent with minimal risk. Securing a reputable independent contractor engagement provider is essential, and will ensure that you have a rigorous and consistently enforced process for identifying and engaging independent professionals.
4. The Onboarding Process is Straightforward
Some of the hesitation in utilizing independent talent is due to an outdated perception of onboarding complexities. Today, firms like MBO have created a simple and direct process. Comprehensive independent workforce programs can help tailor this process to fit the needs of your business, and can often complete onboarding procedures more quickly, thoroughly, and efficiently than procurement personnel who are more familiar with serving traditional employees.
5. The Traditional Talent Pool is Changing
Workers in nearly every specialty are moving away from traditional employment and towards an independent consulting model. This includes seasonal professionals who are opting to utilize their deeply honed experience in an open market that provides them with more control over their career, and more mature independents who have chosen to continue to contribute their skills and expertise rather than retire.
In fact, independence is quickly becoming a normal part of the overall career portfolio. By 2027, we predict that close to 6 in 10 Americans will be independent or will have worked independently. This trend makes it imperative for organizations to learn to effectively integrate this talent segment into their overall workforce strategies.