4 Ways Independent Workers Ensure Market Agility

By MBO Partners | May 16, 2024

Share
a-group-of-people-sitting-around-a-wooden-table

Key Points

The modern workforce is composed of 72 million Americans who work independently.

Market agility is important for companies to remain competitive.

Businesses are improving their agility and flexibility by incorporating independent talent.

Agility refers to an organization’s ability to swiftly respond to market changes, customer demands, and emerging opportunities. To be agile, businesses need to be flexible, innovative, and able to adapt their operations to new circumstances. In today’s dynamic business landscape, agility is essential to survive and thrive.

Why are Independent Contractors Important to Business Agility?

Independent workers play an important role in the modern workforce—they are increasingly emerging as an essential business strategy to help companies stay agile. This sector, which includes freelancers, entrepreneurs, consultants, independent contractors, etc., now numbers more than 72 million Americans—about 45% of the workforce. More people than ever before are trying out the independent lifestyle due to growing demand for specialized services, expanding supply due to labor shortages, and technology, which makes it easier to work this way.

Overall, independents are very satisfied with the way they work which tends to give them the autonomy, control, and flexibility they want in a career. And enterprises are benefitting as well. Below, we review four ways a business strategy that includes independent talent can help ensure market agility.

1. Increased Flexibility and Scalability

One of the biggest benefits of incorporating independent talent into your workforce is increased flexibility and scalability. Independents offer a level of flexibility that is difficult for traditional employees to match. Independents conduct work based on a contract—often for a specific project or duration of time—which makes it easy for companies to scale their workforce up or down as demand fluctuates.

By engaging independent talent, companies can build specialized teams that are tailored to the requirements of a specific project. This could mean tapping into niche expertise, accommodating a variable workload, or accessing talent that is not available among the current pool of full-time employees. Independent talent are a versatile resource that can help a company adapt to changing demands.

Check out: 3 Ways to Build an Agile Workforce with Contingent Talent

2. Specialized Skills and Expertise

Independent contractors are experts in their fields and can bring valuable years of knowledge to your company. This lets them hit the ground running. Hiring a skilled expert allows companies to bypass the typically long onboarding time required for traditional employees. Independents can deliver results swiftly and effectively. This can help a company remain agile by executing projects on a tight timeline or capitalize on a market opportunity that arises quickly.

Up next: Advantages and Considerations for Hiring Teams of Independent Talent

3. Cost Considerations

Cost is another point to consider when assessing market agility. Engaging independent contractors is often much more cost-effective than hiring a full-time employee for the same need. There are several factors at play here.

First, because independent contractors are their own business entity, they are responsible for paying both the employer and employee side of taxes. So, one immediate side of cost savings is paying a bill rate versus a full-time employee salary, which may include insurance and benefits. Second, because independents are experts in their respective fields, companies tend to save both time and money on training, onboarding, and management. Lastly, with project-based staffing, you’re not on the hook for continued employment, which can come at a high cost.

Learn more: 8 Ways Direct Sourcing Reduces Staffing Costs

4. Innovation and Fresh Perspectives

Independents can often bring a fresh perspective and innovative thinking to projects. Because they are coming from outside your company, they can view problems from a new angle without the constraint of a traditional organizational structure. They can help to offer creative solutions, challenge the status quo, or inject new ideas into stagnant processes. This can help to foster a culture of innovation and creativity within your business, encouraging continuous improvement and boosting competitiveness in the market.

Here’s how: 6 Ways Outsourcing to Independent Contractors Can Help Your Business Succeed This Year

Direct Sourcing CTA

Related Posts
Trending
Tags

Learn more about the MBO Platform

FOR INDEPENDENT
PROFESSIONALS

Start, run, and grow

your independent business with MBO

FOR
ENTERPRISES

Engage, scale, and optimize

your independent workforce