Companies not considering switching their staff to a pool of contractors may be missing a golden opportunity. Companies and workers can save money, increase revenue, and reduce stress by having a project-based relationship instead of a standard “W2” employment setup. This article discusses how contracting benefits companies and workers.
Contract Workers Help Businesses
Contract workers can complete their jobs in the field or from home, decreasing the need for expensive overhead (rent, utilities, insurance, furniture, cleaning services and so on).
By diverting a portion of funds that would have been used for the maintenance of an employee toward the direct pay of a contractor, companies can reduce their cost to complete a job, but attract the best talent by offering the contractor more money, the opportunity to get paid faster than they would if they waited for a W-2 payroll cycle, and more work flexibility.
When companies expect someone to come to an office every business day, they tend to limit their talent searches to people who live close to the office. Unfortunately, this best person to complete a particular job may live hundreds or even thousands of miles away. When contracting work out, especially with telecommuting, a broader search is possible because contractors are often prepared to travel to get to work sites or have become experts at completing projects from long distances.
How Workers Benefit From Contract Employment
Contact work allows people to manage their own time to live their lives more efficiently. When they don’t have to endure long commutes or be chained to a desk for eight hours each day, they have time to do the things that keep them sharp and happy — exercise, learn a new language, work towards a certificate and more.
Because there is no need for overhead, equipment, human resources and other ongoing costs, companies normally can offer contractors much higher direct payments than they would an hourly or salaried employee. Higher pay helps to attract more talented workers who complete jobs faster and more professionally because they know that their work ethic is the only thing that will make a company contract with them again, not a union or a company policy.
Companies and Contractors Win
Contracting benefits both companies and workers. Businesses don’t have to concern themselves with the day-to-day oversight of a pool of employees. Workers don’t have to suffer lower wages and a work environment that may not suit their creative and logistical needs on a daily basis. And when people are relaxed and happy, they work more productively.