Independent contracting is a growing trend across all industries, and consulting is no exception. This week, we’re taking a look at some of the market trends that have made contracting a more sustainable option for companies and independent workers alike.
Contracting independent workers is more efficient than hiring permanent employees.
As employee behaviors shift towards job hopping and away from longer tenures, it’s harder to make the argument that pursuing long-term talent pays off. According to the Bureau of Labor, the average full-time employee spends only 4.2 years at each job, a number which is continuing to decline.
With this in mind, hiring on a per-project basis with a predetermined start and end date in the contract is much more efficient as the hiring manager can anticipate the need for talent far in advance. This prevents companies from scrambling to fill positions at the last minute when an employee resigns. Resource planning and roadmapping are essential processes for your business as a whole, and they should encompass your hiring plan.
The onboarding process for independent contractors is extremely cost-effective.
On average, it costs approximately $5,600 to hire and train a permanent employee. While bringing on an independent contractor comes with its own set of initial costs, such as recruiting expenses, these costs are much smaller since the contractor is already a subject matter expert and should require little to no training. By some estimates, it’s 40% more expensive to hire a full-time employee over a contractor. Plus, platforms like Bench SME streamline the hiring process for temporary employees, further increasing process efficiency.
Independent contracting is becoming a more secure employment method.
Independent work has gotten a bad rap in the past for being an unreliable source of income with too many unknown variables. That’s not the case anymore. New tools and platforms allow independent contractors to assume more control over all aspects of their work. These resources also ensure that talent is matched to the right project for their skill set to a greater degree of accuracy.
For example, Bench SME pays its independent consultants via a regular paycheck every two weeks, just like they’d receive from a normal full-time job. The platform takes care of the billing end and assumes all the risk associated with clients who don’t pay on time. Bench SME has the tools in place to set consultants up for success when it comes to finding the right project.
Time to hire is lower with independent contracting.
When a company wants to fill a position, it typically takes around 44 days. On the candidate side, things move a bit slower; some experts recommend anticipating one month of searching for every $10,000 in expected annual salary. For candidates who are in between jobs and don’t have a steady paycheck coming in, this period of time can be stressful and tumultuous.
When independent contracting enters the picture, time to hire goes down drastically, saving time and money on the client side and increasing earnings on the talent side. Platforms like Bench SME further reduce this gap as processes become even more efficient. Talent can be brought on even faster by carefully working through the interviewing and hiring processes with both the consultant and client.
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