Why Contract Workers can be a plus for Profitability

When a company hires an employee, immediate costs are involved from basic pay to several types of insurance – even benefits and a 401k. There are direct out-of-pocket expenses, and the new employee needs to take time to readjust and contribute. Although they have shown long-term viability with the company, the ramp up period is not immediate. With a contract worker, someone hired on a temporary or project basis can have an instant impact on the bottom line.

The contract worker and the organization have the same goal in mind: complete the immediate task at hand and be compensated for the job by the client. A full-time employee can have the same goals but at times, their thought process is often more directed to their position and the long-term company health. If a short-term employee fails to deliver one day or even one hour, they can be fired on the spot, so they are always thinking about putting their best foot forward and having the best work to show.

Companies tend to underestimate the ramp up period for employees. It takes time to adjust, get to know the work, the system, and the other people in the building to give a poignant opinion. A temporary worker is gauged by how quickly they are able to adjust and adapt to these surroundings or totally ignore them. They want to succeed because they have work experience in similar companies, often in the same high-pressure situations.

When the work is overflowing, contract workers maintain customer service and production. They can work odd hours – weekends and holidays – while preventing the burnout of full-time employees. Plus, when a company has a lot of work, it is hard to accept work from new customers such that they must find a solution. A busy period is a good fit for contract workers since the payroll may not be ideal for more year-round employment.

Contract workers may have a particular skill that is good for a certain client but not for the long term. Hiring specialty workers who are not good for all product lines can get expensive if you cannot use their skills every day. Adding someone temporary to fill a role will help you retain the client and build revenue.

In short, temporary workers do have an immediate impact on the bottom line. While they are not always a good solution long term, they are for certain instances such as company growth, niche clients, and relieving full-time employees.

By Dane Flanigan

ultraHealth Agency

Medical Staffing – Beyond Expectations

Working through Difficult Contracts

As a contract worker, there are a few things that can make a position tough. The key is the ability to perceive, communicate, learn from the experience, and move on to something better. The mistake is to give up, get frustrated, or quit.

For the temporary workforce, there are certain expectations. As you come into a new workplace, you must know how to do the job. Others may not be amenable to you or your temporary status. That does not mean you should at take abuse physically or verbally. If any such instances occur, they should be reported.

Aside from a toxic work environment, which is inherently harmful, a person under contract should not quit. You have made a commitment, and people are depending on you. When you quit, you jeopardize your relationship with the recruiter and manager of the company that hired you. People talk and information is shared, which can ruin your reputation in the industry.

Working through the contract also means communicating. If there are things you don’t agree with, you should speak with your manager. Allowing them to make changes will have an immediate impact on the work environment. By working diligently through difficult issues, you set a positive example and validate why you were hired.

Temporary workers don’t have to play office politics; instead, they should focus on the work at hand. While long-term workers need to be concerned about the future of their roles within the organization, temporary workers can focus solely on their projects. That focus can empower the workforce to do a better job and help customers. There are no profits, jobs, or companies without customers.

Contract work is a challenge; it is lucrative and cause the temporary worker to be a professional in the work environment – something not always easy to do. Quitting is never a good option; communication always works best.

Why Some Companies Aren’t Struggling to Hire

A Friday night bad habit had my tastebuds struggling to fight the urge for a cheeseburger, animal fries, and large strawberry shake. So, I dodged the drive-through line and decided to order at the counter of my local In and Out. I was sitting on a bench, waiting for them to call out my number when I took the machine operation. From ordering to cooking, the production process was tremendous; I could not believe how many people worked there. Aren’t we in work shortage, I thought? Especially in the food and beverage industry, there have been great staffing shortages because of the pandemic. But this In and Out was buzzing with people and atmosphere.

In and Out is known for paying workers on a higher pay scale, specifically their management. They are among the highest paid in the fast food industry and the best benefits. Pay matters! For someone in high school, a dollar or two more makes a big difference. For someone supporting a family, it is stressful to work a job, where you are not well compensated.

This enterprise has a winning environment. Have you ever been to a place where the staff is yelling at each other. Well, it is the last place you want to be. A positive work environment is key to success, one where people are always having fun, and customers want to stay and come back. This is an essential but sometimes forgotten element of customer service.

Always Hiring is the sign on the door.  As I came into and exited the place, I saw that both had “Now Hiring” signs for $$ per hour. It was a direct advertisement for people in the neighborhood looking for work. As a recruiter, I cannot imagine that a high-volume establishment like this has heavy turnover. Sure, most restaurants do, yet you don’t always see signs encouraging people to come in and apply. Marketing is key.

Staffing starts with people; that’s why they have a department called human resources. The people dealing every day with customers should be compensated fairly. The environment they work in should be filled with positive energy. we should always be looking to add good people to the organization.

Dane Flanigan CEO

ultraHealth Agency

Seniority or Performance Reevaluating Pay Inequity

Photo by Alex Starnes

Some corporate salary programs are rewarded for experience and not based on performance. How we measure success is sometimes shown to those who have been in their positions and not for how well they have performed. It creates and fosters a culture that is not conducive to a positive work environment.  

For Example, Judy has been servicing the same facility for 10 years. She is a run-of-the-mill manager; and based on her last three years of progress reports, she has been adequate. Her pay is $150,000 per year based on seniority.

Mary has been with the same organization managing a different facility for the past three years. Her performance as seen in her reviews has been excellent. Her salary is $120,000 based on seniority.  

Neither employee is compensated for their performance.

Too often we reward people for being average. We keep them with the company because it makes a stable work environment and as long as it is not bad, it is okay. There is also an understanding that employees (people) are providing for their families and well-being; they may be a friend or simply a colleague we enjoy working with. 

So, who cares if Judy is average? Mary does. She is doing the same job – only better while being paid less.

We need to work on changing the system.  Paying someone based on performance is an objective measurable. If we attach the objectives to data and spread them over other sustainable variables, then we create a system that rewards employees on doing a great job. We can still compensate employees for their tenure with the company, but we are also rewarding a culture values excellence.

Contractors & Passive Income

Photo Credit to Lizi Azizli unsplash

Contractors of every magnitude work hard, but it is especially the case in healthcare. The demands are higher and it is assumed that you know what you are doing. The workloads are greater but that’s okay because you are compensated.  It is not to say that all contracting is the Gig economy, but if we look at the basics of the position, it is temporary, sometimes has benefits, and the pay flows with market demand. However, there comes a time when you need to look at the numbers and gain some passive income.

Passive income, as defined by Wikipedia, is income that requires minimal labor to earn and maintain. It is progressive passive income when the earner expends little effort to grow it. Let’s just call it “other ways your money is making you money”. It is not guaranteed income, so you need to take precautions to avoid taking a loss or wasting time.

We all watch the stock market. It can yield good passive income. If you like looking at numbers and researching corporations, you can do it on your phone. Different platforms and apps do a good job of getting you onboard and showing you how to invest.

Real estate is also a solid source of passive income. The barrier to entry can be expensive with a lot of red tape, but it is a tangible product. There are options to own and flip properties that you can manage for the long and short-term. It is not always easy as the market will see downturns; plus, real estate comes with the burden of high customer service. But the long term rewards are fruitful.

Starting or investing in a business is a learning process, but it has multiple benefits. Of note, 70 % of all small business do not make it, according to Fundera  It is a statistic you cannot avoid and one that has to be taken into account whenever you look at opening a business as an investment.  

As we look to generate smart money, we must look at alternate streams of income. If you decide to get involved in any level of passive income – whether from the financial markets, real estate, or corporations – seek out an expert. Get a good attorney, look to your CPA and financial advisor for good advice and take the time to learn about the opportunities at hand. 

By Dane Flanigan