While recruiting may appear as simple as posting job openings, reviewing applications, and interviewing candidates to choose the best one, it can be quite the opposite.
Recruiters are always looking for new and innovative ways to cut company costs and optimize hiring processes while battling inconsistent labor demands and a fluctuating economy.
Companies are beginning to explore flexible and scalable workforce strategies to quickly tackle talent acquisition requirements as they come, hoping for little to no financial loss.
One such approach that is now on the rise across various industries and a hot topic for recruiters globally is contract recruiting. Contract recruiting is a recruitment method where companies can hire employees for a defined period.
From the tech industry to law and marketing jobs, contract recruiting provides companies with the flexibility, scalability, and efficiency they need to reduce HR operating costs and increase productivity at the same time.
In the United States alone, companies hire approximately 14.5 million contract workers every year. Similarly, independent contractors contributed $1.3 trillion to the U.S. economy in 2021.
Contract recruiting helps companies bridge their skills gap and easily access large, targeted pools of talent, bringing fresh perspectives to the table.
Contract recruiting also helps companies scale up and down as needed and reduces the risk of a “bad hire,” which may cost as high as 30% of the hire’s annual salary.
This article further explores the benefits contract recruiting can bring to your business and the various industries where contract recruiting can make a huge impact on an organization’s success.
Contract recruiting is often employed when companies need to fill roles for a defined timeline or a specific project. When the project or contract runs its course, you are no longer obligated to retain the employee.
Similarly, because companies are hiring the services of an independent contractor, they don’t need to pay employee benefits, such as holiday time and sick leave; they also don’t need to provide insurance and pension plans, and contractors can take care of their taxes.
These factors make working with talent on a contractual basis attractive for companies.
However, even though contract recruiting is widespread, some companies are still unaware of the benefits it can bring them.
Here are some reasons companies choose contract recruiting over hiring a permanent employee.