3 Ways Small Businesses Can Save Money With Contingent Workforce Solutions

Contingent workforce management solutions

Contingent workforce solutions have become a crucial part to the success of many Fortune 500 companies and large corporations thanks in part to technological advances and new regulations put in place. What many people don’t realize is that the acquisition of independent contractors and other procurement solutions can have a huge impact on small businesses as well.

Today, about 40.4% of the U.S. workforce is made up of contingent workers, according to a report by the U.S. Government Accountability Office. While the vast majority likely work for bigger companies that are used to the volatility of contingent workforce management, many small business owners probably are not. Here are three ways contingent workforce solutions can benefit smaller businesses.

  1. Payroll: If you’re business is really small (less than five employees) and you or someone you trust has good accounting skills it might not be worth it to outsource payroll, but if not there’s a good chance you could save some money and certainly time by doing so. From an overall financial standpoint, businesses that pay out 20 to 30% of gross revenue in payroll expenses generally are doing good. Find a company that will charge in that ball park and focus your efforts on your actual business practices.
  2. Special Projects: Whether it’s a display at a local convention or special holiday initiative of some kind you might find yourself in a position where you need more help than you have on staff. Companies spend, on average, around $3,500 per candidate on recruiting. Instead of hiring more people full-time that you probably won’t need once the event is over, consider some kind of contingent workforce solutions that can be hired on a temporary basis.
  3. Freelance Copy/Advertising: Every business no matter the industry will need some sort of marketing copy, SEO content, or writing of some kind done. If you don’t have someone qualified on staff and you don’t have a great enough need to hire someone full-time freelance writers are incredibly easy to find. In fact, 90% of firms use freelance or contracted talent. Usually these kind of jobs are paid by the word/project so you’re sure to get great value.

Procurement management and contingent workforce solutions might seem like avenues that should be left to the big companies, but in reality small businesses can and should take advantage of them in various situations. The examples provided above are just a few of the ways they could help your business grow efficiently.

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