5 Benefits of a Contingent Workforce for Small Businesses

5 Benefits of a Contingent Workforce for Small Businesses

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  • Understaffing issues, skills gaps and the risks that come with experimenting with new business projects – all of these issues can be resolved by hiring contingent employees.
  • Hiring contingent workers is becoming increasingly popular due to the financial benefits and flexibility it brings. It can cut the costs of hiring permanent staff and give you access to wider talent pools.
  • In this article, we delve into the key benefits of a contingent workforce and how to make it work for your small business.

The gig economy is on the rise around the world, and for a number of important reasons.

As a leader of a growth-oriented business, you need to explore all avenues of success and invest in building a thriving workforce – and contingent employees should be a part of your strategy.

With the evolution of digital technologies and trends and the fact that outsourcing is becoming increasingly popular and cost-effective, it’s no wonder that so many businesses choose to hire contingent workers nowadays.

Filling a skill gap quickly, avoiding the problem of understaffing, building a more flexible employee collective – there are many reasons why contingent workers make financial and operational sense for a small business.

So, today we are delving deeper into this matter to uncover the five key benefits to hiring contingent workers for your company.

The Benefits of Hiring Contingent Workers for Your Small Business

Below are the top benefits of hiring contingent workers:

  1. Avoid getting understaffed 
  2. Fill the knowledge and skills gap
  3. Gain access to talent all over the world 
  4. Build a more flexible and agile workforce 
  5. Diversify and experiment with ease 

1. Avoid Getting Understaffed 

In the midst of a pandemic, there’s no telling what the day may bring. You can expect everyone to show up for work as planned, but you can also expect people to quit at a moment’s notice, catch the virus and have to go into quarantine or any other problem that could jeopardize your operation.

The problem of understaffing is a big one nowadays, as small businesses are feeling the weight of the pandemic and all the uncertainties it brings. Of course, while you can’t always prevent or anticipate with certainty that you’re going to be understaffed, you can definitely act quickly.

Firstly, hiring contingent workers can be easy and quick if you work with the right partners in the field. You can find reputable companies that specialize in finding temporary at short notice.

On the other hand, sometimes you can predict that you’re going to get understaffed. During peak months when business is booming and when you need more workers to fill your ranks, you can plan to hire contingent workers to keep your business running smoothly. 

2. Fill the Knowledge and Skill Gap

You might not be understaffed, but sometimes you simply don’t have the internal expertise to push a project forward, drive the innovation process or bring new ideas to life. Sometimes, you need a specialist to come in for the duration of the project to handle important tasks and help your team achieve their goals. This, of course, doesn’t mean that you should look to hire a full-time employee.

Instead, you should be looking for highly specialized contingent workers that can bring a unique set of skills to your organization. If you’re using the right HR software, you should have no problem welcoming and onboarding these specialists into your operation without any administrative difficulties. Hiring a contingent worker is a great way to stay within your payroll budget without committing to anything long term.

3. Gain Access to Talent from All Over the World

One of the main reasons why small business owners are hiring contingent workers is to minimize financial expenditure, while also gaining access to a global talent pool.

Contingent workers from different parts of the world charge for their work differently, but what’s certain is that you can find some of the most talented employees if you look beyond your own borders. That said, navigating global workforce compliance can be tricky.

In competitive markets like Australia, for example, hiring contingent workers is a big trend. However, compliance can be an issue, so modern contractor workforce solutions in Australia need to use the right compliance platform to manage contingent workers and reduce legal liability. This way, you can minimize risk for your small business while hiring talented individuals from around the world.

Wherever you’re based, make compliance one of your top priorities. 

4. Build a More Flexible and Agile Workforce

In the small business landscape, things are constantly changing. Tech and consumer trends are always evolving and shifting, meaning that your business needs to stay agile and flexible or risk falling by the wayside.

To prevent that, you need a flexible business model and an agile workforce. The contingent workforce is ideal for this purpose because you can quickly gain access to talented workers when and where you need them to address new customer pain points.

Whether it’s just picking up the extra work, leading business-changing projects or getting a consultant in to work on your company’s culture, a contingent worker will keep your business afloat no matter how the tides of the industry may shift.

5. Diversify and Experiment with Ease

Diversification is an exciting challenge. On the one hand, you risk wasting money on an experiment that fails, but on the other hand, the experiment may yield significant returns. A contingent workforce mitigates a lot of that risk and allows you to try out new and exciting business projects without wasting time or money.

When you come up with a new business idea or you see an area where you can expand your operation, you can seize that opportunity by hiring contingent workers to explore this new avenue. If it pans out, you can hire the workers full-time if there’s a need, but if it doesn’t, you can quickly shut the project down and save your investment. 

Wrapping up

All in all, contingent workers help small businesses navigate the ever-changing trends and build a sustainable growth strategy. Consider hiring contingent workers for your company in 2021 to reduce financial risk while safely paving the road to success.

Emma Worden

Digital marketer at Bizzmark blog

Emma Worden is a digital marketer and blogger from Sydney. After getting a Marketing degree, she started working with Australian startups on business and marketing development. Emma writes for many relevant industry-related online publications and is both an executive editor at Bizzmark blog and a guest lecturer at Melbourne University.