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Are Independent Contractors Cost-Effective?

   |   MBO Partners   |   May 10, 2019

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Many of the key benefits of incorporating independent professionals into your workforce strategy center around cost savings. For instance, independent talent can offer staffing flexibility and access to skills that might be hard to find among current employees.

These types of financial factors are motivation for businesses to engage independent workers—60% of senior executives say their external workforce is important in managing costs, and 62% say their external workforce improves their company’s overall financial performance. Here are three cost-savings benefits independent professionals can bring to your business.

Access to In-Demand Skills

Companies today report having difficulty finding employees who have the skills they need. There are many factors play into this skills shortage including a tight job market, strong economy, and changing worker preferences. This new work environment, however, has created an ideal landscape for independent professional talent who build their careers off of the specialized expertise they offer clients.

This highly-educated and credentialed group of talent can help to fill skill gaps in a company’s workforce, bringing their knowledgeable expertise to the table when and where it is needed most. Because they are experts in their respective fields, independent talent can help companies save both time and money on training, onboarding, and management.

Flexible Talent Management

Engaging an independent contractor to contribute specific skills to a project, help develop a new line of business, or assist in building out a new market is often much more cost-effective than spending the time and resources to recruit a full-time employee for the same need. Hiring a new full-time employee or even upskilling an existing employee can quickly add to payroll costs.

With independent professionals, businesses don’t have to worry about costly benefits packages or the expectation of continued employment after a large project is completed. And independents can be found in virtually every industry from IT, marketing, and sales to education, healthcare and consulting.

Access to Combined Expertise

Independent professionals often work together in teams, bringing combined expertise to a business to complete large projects or solve big-question problems. A team of independent talent can approach a project request from all different angles, contributing multiple viewpoints, areas of expertise, and fresh perspectives.

The majority of independent talent, whether they work individually or as a team, will have a set bill rate that that you can see ahead of time and will work with you to create a contract that defines the scope, methodology, requirements, and total cost of a project. Overall, independents tend to be very cost-effective resources because they can be engaged for a set period of time and can contribute specific expertise that may be difficult to recruit for or find among your current employee base.

Want to learn more about how you can find top independent talent for your next project opportunity? Contact us today.

MBO Partners