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While most organisations still rely on a full-time team as its core, the Michael Page Australia Salary Benchmark 2019 reveals contracting and freelancing is on the rise. The ratio of employee versus contractor roles are rapidly changing and, for the first time in Australian history, less than half of the nation’s employees are working in permanent full-time jobs.
This leaves managers and hiring managers with the inevitable question: What is a contractor or freelancer’s benefit to your company?
Adapting to the gig economy is essential, and temporary staff can serve as an asset to your organisation — provided you embrace them with the right approach. From greater flexibility to reduced costs, here are six ways temporary staff can make your life easier:
Your company inevitably goes through busy and quiet periods in line with your industry or your customer needs. However, you need to pay your full-time employees the same amount, regardless of how much revenue you generate. Temporary staff allow you to scale your team based on actual needs, without the commitment that comes with permanent part-time or full-time staff.
In addition, contractors and freelancers can provide you with additional hands on deck if you have to tackle an ad-hoc project or need extra help to meet a deadline. Some freelancers and contractors are also open to working outside of regular office hours, providing you with greater productivity round-the-clock.
Whether it’s due to employee turnover or a family emergency, every company needs to deal with unforeseen issues that arise within their team. These often leave companies struggling to meet deadlines, and puts additional pressure on existing employees who need to compensate for changes in your organisation.
Did you know 52 per cent of employers cite talent shortages as the main reason to employ temporary staff? In unexpected circumstances, freelancers and contractors can serve as a quick fix while you find a long term solution. If you have a pool of potential freelancers and contractors, you can quickly call on them to lend a helping hand on any outstanding projects, without needing to worry about the recruitment and onboarding process.
Temporary staff are often brought on board to complete certain tasks or projects. Because of this, they’re not tied down to the everyday tasks that come with a permanent full-time role and can therefore focus solely on getting the job done.
You can also choose a temporary employee or contractor who matches the exact skillset you need for a task, which is particularly beneficial if you have a skills gap within your current team.
For full-time staff, you need to offer an attractive remuneration package with a competitive salary and company benefits. However, with temporary staff you don’t need to worry about providing annual leave or sick leave — plus, temporary employees are generally responsible for their own super contributions and insurance. In the end, this frees up payroll expenses so you can invest more in employee benefits for your existing employees.
Most contractors and freelancers also set their own rates using a contractor pay calculator. This transparent approach takes the guesswork out of salary negotiations: if their rate aligns with your budget, you’re ready to go.
There’s a common misconception that freelancers and contractors are only there to get the job done. However, the truth is far from this. A survey by Payoneer showed that 52 per cent of freelancers are looking for additional work, and 68 per cent want to improve the amount of money they make.
Temporary staff aren’t tied to one organisation, which means their income is dependent on nurturing client relationships. Because of this, contractors are often willing to go above and beyond to ensure they maintain a positive working relationship with you, in order to increase the likelihood of recurring work in the future.
While you may be working with temporary staff using an independent contractor agreement, a temporary arrangement may translate to a permanent hire. Throughout the process of working together, you can evaluate the cultural fit and the professional relationship to see if it’s a match.
By hiring someone you’ve worked with previously, you’ll save valuable time during the recruitment and onboarding process. Plus, as a freelancer or contractor would be leaving their current roster of clients to work full-time for your company, there’s a good chance they’re more engaged with your company than a regular candidate.
If you are an employer and would like to discuss your hiring needs, fill in the form below and we will call you back.
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