Top Reasons For Hiring Contractual Employees – What Businesses Should Know

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The number of people who do work on a contractual basis is increasing every year. According to a report made by the non-profit organization Freelancer’s Union, employer-independent workers form one-third of the total workforce in the US. These people either work for companies on a per-project capacity, or on their own as freelancers.

But before we delve deeper into the reasons for hiring contractual employees that business should know about, a clear delineation of terms is in order.

owg43brey5trh54tAn employee is a person hired by a company (either on a full-time or part-time basis) who is subject to federal and state employment laws. These laws contain stipulations regarding pay, taxes, benefits, and termination procedures that should be strictly followed. Most of the time, employees are allowed to work with only one employer at a time and are completely barred from working for competitors.

A contractor or freelancer, on the other hand, is a person who works for business on a finite, project-by-project basis. The term “contractual employee” is actually kind of a misnomer since state and federal laws regarding employees do not apply to this kind of working arrangement. The contractor is considered as a business on his or her right; he or she does not have an employer-employee relationship with a business, but rather, a client-provider one.

Reasons for hiring contractual employees – top benefits

idosfg4opio90re5443One of the top reasons for hiring contractual employees is the fact that it can be cheaper and faster for businesses to hire experienced contractors rather than recruit, hire, and train employees from the ground up. The business can also save up on costs for health insurance, benefits, payroll costs and all of the other expenses that they would otherwise need to provide to traditional employees.

Other top benefits include:

1. Being able to adjust quickly and easily to fluctuations in the workload

If there’s more work to be done, businesses can easily take on more contractors to handle the increased load (especially during seasonal and peak periods, or whenever there’s a special project that needs to be rushed). These contractors can also cover for sudden employee absences or whenever there’s a shortage in the workforce.

2. Being able to work with more flexibility

Contractors often have flexible work arrangements with the company they’re rendering service for. They are not required to be in the office or work under supervision. The important thing is that the deliverables that are agreed upon beforehand are submitted on time.

3 Time-tested Ideas To Boost Employee Retention

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A high employee turnover is a serious problem for any company faced with it. Not only does the regular coming and going of employees pose an administrative nightmare, but it also disrupts the internal workflow of the organization. It is in the interest of every organization, therefore, to maintain an employee turnover that is as low as possible, by seeking out the best ideas to boost employee retention. Following are three time-tested strategies for keeping your workforce as relatively intact as possible.

1. The Right Environment

odfeiwgrey45h54y54Amongst all the ideas to boost employee retention, this one is the most important, and for a good reason. The right working environment is not just about interior decoration of your offices or laboratories. It goes much farther than that; it is about cultivating the right emotions in each member of your workforce. This is what people refer to as company culture, a code of conduct between all members of the organization; that is acceptable to each and everyone. If you get this right, a powerful bond will be created between the workforce and the organization, and you will never have to worry about retaining a worker again.

2. Touch Lives

A friend in need is a friend indeed. There are many ways to touch a worker’s life that will deepen his or her bond to your organization. Apart from well thought-out gifts like birthday or wedding presents, you can offer the even greater gift of education to your employees. By offering or helping them out with training opportunities, you will be creating a bond that an ordinary increase in pay from a competing firm cannot break, making them prefer to stay with you.

3. Promote Competence

irogie4grg54ghe5y54When thinking of ideas to boost employee retention, many managers or entrepreneurs overlook the simple, yet powerful technique of cultivating excellence in an organization. Managers and business owners tend to focus on struggling employees, and try to bring them to the same level with high performing employees. But then they overlook the high performers and fail to either encourage or push them forward. They may even fail to acknowledge their successes and achievements, leading their best employees to, therefore, feel unappreciated. They may then decide to find somewhere else where they can be appreciated.

Any business owner or manager who follows these three time-tested techniques for retaining members of a workforce will definitely be rewarded with high productivity rates. Sure you will have to pay your workers well, but it is not always about the money. All that has to be done is to foster the right company culture, invest in the training and general education of your workforce and promote competence; that’s it.