Many companies are afraid to use contingent labor because of myths and assumptions. With so many myths of contingent labor looming around, we’re putting those myths to rest and shedding light on contingent labor with data to prove that the benefits of contingent labor outweigh any myth out there.
Myth 1: There is no consistency in the quality of the candidates I hire
Contrary to popular belief, companies choose and filter contractors based on skillset and expertise. In fact, one of contingent labor’s most important consistency and quality advantages is the ability to select the best candidate to complete your project. By utilizing contingent labor and a platform like Field Nation, businesses have the ability to filter candidates based on experience, specific skill sets, and certifications to select the most qualified individual that meets your company’s specific needs.
Concerned about consistency and the ability to work with someone you like again? Field Nation offers Preferred Provider Networks (PPN’s) so you can save contractors you trust to use again in the future. Although the perfect candidate can’t always be guaranteed, the right tools make it easy to select the best fit candidate for any job.
Myth 2: The quality of work for my customers will suffer
Quality is the number one concern of any service organization. It’s only natural that many people are concerned with using contingent workers because the assumption of short-term work is low quality. However, many companies don’t realize contractors have a wealth of experience. In fact, 15% of contractors completing work on Field Nation have sixteen years experience. Another 19% have between 11 and 15 years of experience in their area of expertise.
Thanks to qualified contractors, Field Nation users specifically have realized significant increases in SLA compliance and decreases in quality related events. For example, BLM Technologies has realized an increase in SLA compliance from in the mid 80’s to 99%. Further, according to a study done by Blumberg Advisory Group and Field Nation, SLA Compliance is 5.8% higher for companies who use contractors over those who do not.
Myth 3: The skills I need aren’t available in my area
Did you know that over 40% of skilled workers in America rely on contract work? Field Nation alone supports on average 2,500 zip codes on a daily basis. Instead of recruiting full-time employees across the country, or paying thousands of dollars to send someone onsite, employers can log in to an online platform and post work for any location. Within minutes dozens of contractors have requested to work for them.
Embracing contingent labor gives businesses the ability to access a large talent pool of candidates that can be filtered to a specific geographic area. From scaling up geographically to expanding into new markets, contingent labor allows business to support more technologies in new geographic markets with the fraction of the overhead.
Myth 4: My business is too complex for contingent labor
Truth is, no job is too complex for contingent labor. Highly skilled professionals such as field service engineers, lawyers, and financial advisors are opting out of their traditional 9-to-5 roles and contracting on their own time. While many people do contract work to supplement their income, a majority of people in specific industries contract as their primary source of income. In fact, the average contract worker on Field Nation has 16 years of experience in their area of expertise.
Have a complex project? All you need to do is clearly define the project at the beginning. By doing so, contingent labor will be tremendously successful. On Field Nation, a Scope of Work enables businesses to document project deliverables and specific company information that is pertinent to any candidate looking to complete the work. A clearly defined Scope of Work allows businesses to fully communicate the complex nature of their business and what is expected of that candidate. Interactive tools also structure onboarding and training processes to specific needs before starting any project. By communicating requirements accurately, a company’s complexity can be trained as easily as your current W2 employees.
Myth 5: Onboarding is will take too long, and be too expensive
A major concern for companies implementing contingent labor is the time and costs associated with getting that candidate up to speed. In our 2016 Field Nation Freelancer Study, we found that 88% of companies that use a Freelance Management System (FMS) to embrace contingent labor, typically onboard a candidate in less than 11 days.
In conclusion, embracing contingent labor may look like a daunting task, but it offers benefits that can be of great value. The ability to select from a quality talent pool all the while satisfying clients projects, and expanding geographically allows businesses to scale up quickly and satisfy project demands. Company complexity and onboarding can be easily addressed with detailed requirements and the use of Freelance Management Systems.
Are you ready to start using contingent labor? Sign up here with Field Nation.