Creating more jobs is one of the most exciting things about growing your company. But how do you know if you should hire full-time, in-house employees or on-demand freelance talent?
There are a number of payroll, litigation and tax considerations that may prompt employers to use independent contractors instead of traditional employees. The Association of Corporate Council provides a good overview of those factors. But for many organizations, utilizing contingent talent provides key strategic advantages that go above and beyond mere cost savings. Here are five indications that on-demand professionals may be the answer to your company’s growing pains.
#1 Your business growth is non-linear.
It would be wonderful if your organization had a steady, even growth curve. But if you’re like most companies, your headcount requirements fluctuate from month to month based on circumstances outside your control. Or you might have predictable but cyclical labor needs. Hiring and then laying off employees is a process fraught with emotional stress for everyone involved, and it can be costly in terms of unemployment claims. In contrast, independent contractors enter into an arrangement with clear expectations about the length of the project, renewal options, and the required notice for contract termination if things change (and they know not to put all their eggs in one basket).
#2 You must move quickly to capture an opportunity.
At times, waiting on the traditional hiring process can mean losing significant revenue. Let’s say you land a huge client who expects a speedy turnaround on a large project. This is a make-or-break moment for your company. If you can deliver (or over-deliver) on their expectations, you are looking at a major source of ongoing revenue. There is no time to hire and train your own personnel and no room for error. You need staff that can hit the ground running and meet demanding deadlines. Having access to an experienced on-demand workforce is a lifesaver in this situation.
#3 Your local candidate pool isn’t cutting it.
Identifying skilled candidates in the ranks of the unemployed can be a challenge. Even when you find someone with relevant experience, there’s always a chance that person is more motivated by the paycheck than your company’s mission and culture. That’s one reason employers prefer hiring individuals who already have jobs. However, it can be difficult to tempt a highly skilled, “perfect fit” employee away from a competitor. It’s costly to do so, and there’s a chance they may be recruited out from under you by the next employer who offers better compensation.
On-demand talent lets you tap into a pool of candidates who:
- Are already working and proving their ability
- Actually want to work with your company
- Have the bandwidth to take on your workload
#4 You can’t afford (and don’t need) an agency.
On-demand talent occupies a sweet spot between insourcing and outsourcing. For example, hiring a full-time, in-house social media writer might be more than you need. But contracting with a full-service marketing agency and paying for their extensive overhead isn’t appealing either. With a free agent, you can hire a specialist with the exact skills you need and none of the typical markup.
"With a free agent, you can hire a specialist with the exact skills you need and none of the typical markup."
#5 You are tired of micromanaging your workforce.
Take a moment to think about some of your best internal employees. They are probably people who follow instructions well yet have the ability to be autonomous and take charge of getting things done. They are reliable and regularly contribute good ideas to help your organization operate more efficiently.
These gems are few and far between. Yet independent professionals frequently bring all these attributes to the table. They have to be responsible, responsive and self-starters to run a freelance business in the first place. Plus, they are already doing what they love and bring that passion to your project. Properly vetted on-demand talent can serve as part of an elite team that delivers high value to your organization.
"Properly vetted on-demand talent can serve as part of an elite team that delivers high value to your organization."
If your company is making progress that feels like “two steps forward, one step back,” OneSpace is here to help keep you moving in the right direction. Find the talent you need on demand, right now, right here.