5 Benefits of Hiring Contractors

Research by Harvard Business School paints a clear picture: the traditional, full-time-only workforce is fading. Their findings show that about 90% of companies now employ a mix of full-time staff and contractors. This trend is echoed by the ADP Research Institute, which reports that in about 40% of enterprises, one in four workers is a contractor. Besides, Statista projects that half the US population will be engaged in some form of contract work by 2027. These statistics highlight a significant shift towards a contract-based workforce. But what’s driving this trend? Why are companies increasingly hiring contractors despite potential drawbacks?

The Advantages of Working with Contractors

There are several key benefits that companies experience when they integrate contractors into their teams:

1. Flexibility and Scalability

Contractors offer unparalleled flexibility when it comes to workforce size. When companies need extra staff for a short-term project or face a seasonal sales surge, contractors allow companies to scale their teams up or down as project demands fluctuate. Employers can adjust contract durations, ensuring seamless adaptation to a dynamic market.

2. Cost-Effectiveness

Maintaining a large, full-time staff can be financially draining. Companies that leverage contractors benefit from significant cost reductions. For example, employers can save money on payroll taxes and benefits by hiring contractors instead of employees. This includes things like health insurance and paid time off. Such cost-saving allows businesses to allocate resources more efficiently, focusing funds on core operations and growth initiatives.

3. Access to Specialized Skills

The talent pool expands exponentially when businesses consider contractors. Thus, companies can tap into a vast network of specialized professionals with unique skill sets and expertise needed for a particular project, eliminating the need for full-time recruitment and training. These individuals bring fresh perspectives and enrich project outcomes by injecting new knowledge and innovative approaches.

4. Reduced Administrative Burden

Hiring contractors simplifies the often-complex administrative process. The HR team experiences a significant reduction in workload, allowing them to focus on core business functions and strategic initiatives. This streamlining of processes enhances overall productivity and frees up valuable resources within the HR department.

Learn more about contractor-specific HR practices at this link.

5. Fresh Perspectives and Innovation

Contractors bring a breath of fresh air to companies. Compared to full-time employees who work in a relatively homogeneous business environment, contractors’ experience working on diverse projects provides valuable market insights. This unique perspective fosters creative problem-solving and drives innovative solutions within the team.

The Challenge of Managing a Contract Workforce

While leveraging contractors offers numerous advantages, managing them presents its own set of challenges. Manual management or the lack of specialized software can lead to issues such as:

• Scattered documentation: Important documents like contracts, licenses, and certificates of insurance can become lost or misplaced if not stored in a central location.
• Communication gaps: Ineffective communication with contractors can lead to misunderstandings and project delays.
• Compliance risks: Failing to stay on top of compliance regulations can result in legal and financial repercussions.
• Inefficiencies and errors: Manual processes are prone to errors and inconsistencies, leading to delays and wasted resources.
• Wasted time: Spending hours on repetitive tasks such as calculating and processing payments, monitoring performance, or tracking contractor schedules takes away from more important strategic work.

Contractor Management with Appruv

Appruv tackles these challenges head-on by providing a centralized platform for managing all aspects of the contractor workforce. From communication and onboarding to training and document storage, Appruv streamlines every step of the process.

Key features of Appruv:

• The centralized communication platform seamlessly bridges the communication gap between employers and contractors, ensuring everyone is on the same page.
• The resource and training center enables effortless creation and delivery of training materials and courses, with automated completion tracking.
• Cloud document storage provides a secure repository for crucial documents, such as licenses and certificates, accessible from anywhere.
• User-friendly onboarding and orientation simplifies the online onboarding and orientation processes, saving time for employers while ensuring completion by all contractors.
• Automated compliance tracking mitigates risks and reassures employers by automating compliance monitoring.

By using Appruv, companies can enjoy the numerous benefits of working with contractors while mitigating the associated challenges. This allows them to build a flexible, agile, and cost-effective workforce that propels them towards success in today’s market.

If you are looking for a way to manage contractors more efficiently while spending fewer resources, contact the Appruv team today.