The contingent workforce is on the rise. A recent report by Oxford Economics shows that 83% of executives are using contingent, intermittent, seasonal or consultant employees instead of a permanently staffed team. This was already beginning to become prevalent before the global pandemic began, but no one could have predicted the speed in which businesses over 2020 have quickly moved to embrace this new model of working, and to take advantages of the benefits created not only for their own company, but to support overall economic recovery in society.
So, what are the benefits of the non-payroll worker? There are 3 main advantages outlined below:
- Cost savings. This may be the obvious upside of using contractors for your technology projects, but the key factor here is ensuring that the costs are efficiently managed so this pool of talent is optimised for your business requirements. Having a centrally managed, efficient process and the right technology in place will mean you do not waste the money you are saving on rogue spending. There are also rate savings to be had based on understanding the expertise needed: You can high the contractors with the right level of skill for the project duration, a less experienced person may take longer to complete a project and then ultimately end up costing you more. I could (and will!) write another blog on the hidden savings here too: opening access to global market rates, reduced technology acquisition, talent training, R&D, research etc.
- Building your own talent pool. To get best from the contingent workforce, you need access to the best talent for your projects, that will be available to you precisely when you need them to be. Having fast access to quality contractors (those who have already been vetted and proven their skills) will save you screening and interviewing time and greatly improve productivity.
- Supporting the economy. Embracing the increased contingent workforce base has a broader impact on the economy, as business can harness the power of this important group to scale. As companies struggle to hire permanent in-house talent, with more of us working from home, and businesses having to make hard decisions on where to place budget, then utilising non-payroll employees can mean they can meet resource demands quickly and effectively. This in turn creates income for the contractors and stimulates spending and revenue from taxes.
As you can see, there are a host of benefits for organisations and for contingent workers. At ten80, we are uniquely placed to assist companies with their technology project needs by connecting to a global marketplace of skilled SAP contractors, and the ability to centrally manage this important resource through our digital platform. Click here to register now and one of our team will be in touch right away.