Staffing firms are often hesitant to start offering contract staffing as a solution to their clients, and not without good reasons. Contract staffing presents unique challenges regarding administration and compliance. When you consider the fact that Ontario made major changes to its Employment Standards Act just last November, it’s no wonder staffing firms are daunted by these potential challenges.
You might be surprised, however, to find out that it’s actually riskier to avoid offering contract staffing than it is to juggle admin and compliance. That’s because the most competitive staffing firms recognize that many businesses are actively hiring within the gig economy.
The benefits of contract staffing, such as flexibility and low costs, allow businesses to focus on their growth. That principle goes for both clients and staffing firms, believe it or not. There are many myths out there about how contract staffing can hurt a staffing firm’s progress, but the truth is quite the opposite! Read on to debunk some myths and learn about three little-known benefits of contract staffing.
1. Improves Your Productivity
One of the prominent myths of contract staffing is that only non-viable candidates or those “between jobs” are looking to become contractors. Despite its persistence, this myth holds no water in today’s gig economy, which is driven by highly skilled workers who often prefer contract work to permanent full-time work.
Today’s candidates for contract work are looking to supplement their main income or, alternatively, they find the flexibility of contract work more fulfilling. Experienced contract workers are used to adapting quickly to new work environments, honing their specialized skill set with each project completed for a client.
With contract staffing as a service offering, you can offer your clients a fast solution to their short-term projects as well as address leave management issues they face.
Being able to provide quick and flexible contractors will increase the number of placements you make per client, which means securing a recurring revenue stream for your firm.
2. Mitigates Your Risk of Losing Clients
Another myth held by the staffing industry about contract staffing is that it’s a high-risk solution. As already mentioned, contractors do come with some significant admin and compliance challenges. The most challenging are payroll and employee classification.
Yet, there are many resources available to firms to keep these admin and compliance tasks manageable, like a back office services provider. Providers like The Staffing Edge are experts in Canadian compliance and offer many solutions to account for the complexities of offering contract staffing services.
When you have a strong infrastructure in place, your contractors are actually the key to lowering your client turnover rate. When you make permanent placements with a client, your working relationship is effectively over. One of the major benefits of contract staffing is that your client relationships will last longer and their loyalty to your brand will strengthen over time.
3. Grows Your Business Value
Lastly, perhaps the most pervasive myth about contract staffing is that the service doesn’t add much value to your business. This myth arises out of the previous assumptions about contractors—that they aren’t qualified workers and there’s too much admin risk involved. With what you know about Canada’s booming gig economy, however, this myth is easily debunked.
When your firm offers contract staffing, one of the most overlooked benefits is how much value is added to your business.
When the strength of your business is as much its contractors as its recruiters, you’ve unlocked a lucrative revenue stream that grows your business value continuously. Take stock of these three little-known benefits and get the help you need to set up your contract staffing services.