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

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