How Biotech, IT, and Defense Companies Can Win With Contingent Workers

By Sara Jensen

Think the gig economy is all Uber drivers and freelance writers? Think again.

That may have been true in its early days, but this burgeoning workforce now powers all sorts of sectors. Contingent workers — including contract employees, freelancers, and independent consultants — account for more than 40 percent of today’s U.S. labor force.

Three places you might not expect gig economy growth? The biotechnology, information technology, and defense industries. Temporary hiring, notes Greg Reh, Deloitte’s U.S. and global life sciences leader, is one of the hottest trends in biotech. Tech fields require top talent for specialized work on specific projects, and contingent hiring allows companies to recruit quickly from a worldwide pool and receive around-the-clock results.

In fact, more than 80 percent of executives have begun to employ an on-demand workforce. But many jumped in before understanding how to protect their companies from the gig economy’s risks. Contingent hiring brings a host of legal hurdles, and worker misclassification mistakes can cost companies millions.

Getting Ahead in the Gig Economy

Still, contingent workers can be a boon to your bottom line. Biotech, defense, and IT companies can become gig economy leaders by taking the following four steps:

1. Get creative with recruitment and onboarding.

If recruiting top talent is your biggest challenge, you’re in good company. Globally, nearly half of employers are in the midst of a talent shortage, and tech fields are facing particular shortfalls.

Unfortunately, constant hiring cycles are straining these companies’ HR departments. To avoid burning out your team, work your staff referrals and company alumni. Try a contingent worker hiring platform, such as Hired or Toptal, or outsource recruitment to a trusted staffing provider.

Then, once you’ve found a candidate, onboarding him or her can be equally challenging. An employer of record can free up HR’s time from constantly training contingent hires, and it unburdens payroll from processing fluctuating compensation for these workers. What’s more, it can protect your company from contract worker lawsuits and unemployment claims.

2. Designate a single point of contact.

Particularly when a company is just getting started with contingent workers, it’s easy to underestimate the number of moving parts involved. This isn’t just about recruiting and payroll, either. Who’ll assign work to contingent workers? Who’ll coordinate mixed teams? Who’ll ensure compliance with labor laws?

To minimize miscommunication, select one person to handle all requests for non-employee help. This contact’s job should be to educate requestors on the process and to ensure contingent workers are handed appropriate assignments.

Especially at defense companies, which already have their hands full with administrative paperwork, a single point of contact may not be feasible. If that’s your situation, look to an employer of record. Our company serves as the EOR for a global defense contractor. By outsourcing administration for just 10 contingent workers, the contractor saves roughly 1,000 hours of work per year, Go to the full article.

Source:: Business 2 Community

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