Traditionally, companies used a variable/contingent workforce only when there was a spike in demand for a particular service or product. For example peak periods like holidays, new product releases, etc.
Today, the idea of creating a workforce comprised of both traditional employees and variable/fractional works has become more attractive. For many companies, it’s becoming more difficult to balance keeping resources at a level that aligns with demand. Many companies have begun using a strategy that leverages independent workers or contractors to fill in workforce gaps when needed.
Breaking Down Organizations by Employees
When you look at companies that comprise the workforce, you’ll find that many organizations fall into three buckets (rather than the most traditional “FTE or full-time equivalent’).
- Full-time employees – Staff members that work on a full-time basis whose skills and availability are needed on a full-time basis during structured business hours.
- Long-term contractors – Staff members whose services are needed for more than a single project, but who are not tied solely to an organization.
- On-demand workers – contingent and variable in nature, these workers often fill gaps in the workforce during periods of short-term growth or organizational change.
The Advantages of a Variable Workforce
When looking at the benefits of a variable workforce, you can identify positives across the board.
- Keeping overhead low and variability high during uncertain times is the ultimate goal.
- Flexibility in meshing talent with demand.
- Not having to pay for benefits and traditional employment taxes on their variable workforce.
- Ability to procure talent in a variety of ways. Through technology, top talent is now more accessible than ever. App and websites provide access to freelancers and “gig employees”. Other companies can also help find talent on a fractional basis in the place of the HR team.
Utilizing a variable workforce can be extremely cost-effective for companies across all industries. Whether the talent need is in software engineering or in talent acquisition, there are a plethora of options that help keep a workforce flexible during uncertain times.
Does your team need additional help in the recruiting department due to expansion? Lucas James Talent Partners is an ideal option for flexibility and cost containment.