Hiring new employees is very expensive and time consuming. Recruiting new staff costs businesses an average of $3,500 per employee. When you factor in health insurance benefits, pension contributions, training, etc., you see that each employee can cost a company up to three times the salary for that position. For most companies, it takes at least 25 working days to fill the vacancies they have. To avoid this problem, many companies hire independent contractors or freelancers to augment their full time workforce. They often turn to outside firms to help find procurement solutions for their staffing needs.

Contingent labor management companies help provide the procurement solutions businesses need. There are some downsides to hiring contingent labor to work alongside full time employees. The Department of Labor and Internal Revenue Service are cracking down on companies who treat people like independent contractors when they should be treated and paid as employees. To avoid misclassification lawsuits, workforce management consulting firms help with the acquisition of independent contractors. The contractors work for the third party firm but are leased to a business to conduct whatever work is needed and they are trained to do.

In these kinds of arrangements, the workforce management services company deals with all of the human resources issues such as payroll, taxes and insurance. The main business who has hired the third party, trains and supervises the worker. These kinds of procurement solutions are favored by many companies in the United States. Approximately 90 percent of U.S. firms use contingent labor of some sort and it makes up nearly 40% of the American workforce so this practice is definitely gaining in popularity.

There are things businesses who rely on a contingent workforce can take steps to make the situation better for everyone.

1. Extend your training and skills development programs to your contractors. Let your contingent workers feel appreciated and that your company is invested in their career path and growth by offering them the same training and skills development that you have available to your full time workforce. They will appreciate being given challenging work to do and the opportunity to add value to your organization.
2. Include your contract labor in your onboarding programs. If you integrate your contingent workers into the programs you have to introduce full time employees to the goals and culture of your company, you make them feel like they are contributing something to your organization and is an important part of most workforce procurement solutions.
3. Your contractors are important to your business and they need to know you understand that. People who feel valued work harder and do a better job. This is as true for freelancers as it is for full time employees of a company. When they see the difference they make for your business, it helps keep them motivated.

Independent contractors and freelance talent can help many businesses improve their bottom line by reducing their labor costs. They can also add vitality, energy and new ideas to your business. Finding ways to integrate them into your existing workforce can only help your business thrive.