It is no secret that inflation has been a consistent fixture in business these first few months of 2023. As employers look to cut costs through full-time employees, contracts and gig economy workers are growing in popularity.
According to Linkedin’s 2023 Future of Recruiting research, listings for contract jobs jumped 26% YoY from 2021 to 2022 and trends continue to indicate the same increase in 2023. This is also in comparison with full-time roles, which only grew by just 6% in the same YoY timeframe.
Even with the hiring decline, there continues to be a need for revitalized strategies of hiring temporarily to ensure the business runs smoothly. Elsa Zambrano, the SVP of Talent & Culture at NXP Semiconductors, explains “as hiring slows, now is the time for companies to review their workforce strategies and see how they can find and fill these gaps internally” (Linkedin, 2023).
So why consider hiring contract workers this year? For starters, it is a great way to reduce labor costs. As contract workers do not need full-time benefits packages, which account for a whopping 69% of total costs when hiring an employee. Most taxes are also paid by the employees themselves, which is fewer fees and administrative work for your business.
‘Quiet Hiring’, or when an organization acquires new skills without actually hiring new full-time employees, is also another trend sweeping the professional world. Quiet Hiring allows you to slow your hiring without compromising resources and workload. Say a crucial project is upcoming and your team needs a specific skill set to get the job done. Hiring these temporary workers is an efficient way to get projects completed without spending a fortune.
A contingent workforce also opens a wide variety of doors to new talent pools. If your organization is searching for a highly specific skillset such as electrical systems or geotechnical engineering, contract work is a great way to find exactly the skillset you’re looking for to get the job done efficiently.
As your company looks to reduce costs and efficiently hire in 2023, working with contract workers is highly worth considering. If you’re looking to start your journey by hiring contingent work for your next project, contact us and get started today!
“The Future of Recruiting 2023.” Linkedin. 2023. Retrieved 29 March 2023. https://business.linkedin.com/talent-solutions/resources/future-of-recruiting?trk=bl-po&veh=is-2023-the-year-of-the-contract-worker.