From the course: Working as a Contract or Temporary Employee

New workforce model

From the course: Working as a Contract or Temporary Employee

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New workforce model

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- I'm sure you remember the old TV sitcoms where the men dressed for work by putting on a suit and tie and women put on a dress, hose, and heels. They arrived to work at eight, had a lunch break from noon to one, and went home at five. Yeah, not anymore. Today's workforce is a blended model consisting of a small core of traditional direct employees supported by a larger, outer ring of talented, flexible workers: temps and contractors. The direct employees in the core are key personnel with the experience and longevity that can make or break the business. Turnover in this group is highly disruptive. While the work of the outer ring of contractors is just as important, because they are often responsible for day to day tasks and critical projects, turnover is not as big of a concern. What companies like about this new, blended workforce model is that the outer ring can easily be adjusted based on business demands. It can be increased during peaks and just as quickly reduced when economic or business conditions dictate. Now, when a position becomes available, companies first determine if the job should be filled with a direct hire or better suited for the outer ring of contractors. The opportunity is also not limited by a rigid Monday to Friday, eight to five working schedule. Companies are looking strategically at each open position to determine if they really need a direct hire or if the job is better suited for someone in the outer ring of contractors. In fact, over 80% of all companies in the U.S. use temporary employers or contractors in one capacity or another to provide much needed flexibility. For example, when a company is under a hiring freeze, but still needs workers to complete a project. When they have a direct hire candidate but want to hire them as a temporary employee or contractor before offering direct employment. A try before you buy tactic. Or when a company found someone for a project but doesn't want to add them to its payroll. And when a company needs to convert a 1099, independent contractor to a W2 employee to meet IRS requirements. The shift to a blended workforce is largely a result of the last recession. It taught companies to run lean and limit overhead costs. And as the popularity of this model grows, it will create a consistent need for a quality workforce. This new workforce model is here to stay. As a result, should you consider working as a temporary employee or contractor?

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