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Increase Productivity through Contractors with Benefits by Next Step | posted: 10/23/2013
Why hire a contractor?
As the economy improves, managers are challenged with matching the right skills to fluctuating market needs. Since the use of contractors allows companies to engage talent quickly and flexibly, the “contingent workforce” is growing exponentially. For many Next Step clients, having a pool of qualified contractors address requirements “just in time” provides a strategic advantage.
Attracting and retaining contingent workers
According to the Freelancer’s Guild, one-third of the national workforce is comprised of contingent workers. The Bureau of Labor Statistics reports there are 10.1 million self-employed workers nationally. These “freelancers” may contract directly with a company or work through one or more consulting firms or agencies.
Increasing demand for quality workers raises the question
How can a manager attract the best contractors, maximize their productivity and develop long-standing relationships with them?
Historically for many contractors, the challenge with contingent work has been the lack of “benefits” such as health insurance.
Through research conducted with our client, Teaching Artist Guild Next Step identified several benefit options that allow contractors to receive benefits – while working for various organizations.
Contractors with benefits
One of the five options identified for US companies was leverage of the Affordable Care Act. Contractors (even those with previous health challenges) now have increased access to affordable health insurance that is not tied to an employer. Each state’s health insurance exchange website describes plan options and costs. For a small business (which might be comprised of multiple contractors with complementary skills) there are also new options available for coverage through the small business exchange (SHOP).
Other options available to the contingent worker either on his / her own or through an agency include:
- dental and vision plan discounts through an affinity plan or third-party insurance company
- clearing houses offering discounted health services
- group insurance through membership in a guild
- membership in a union or professional association
- group plans for liability and other business insurance
Use of a contingent workforce can allow fast response to market changes, greater productivity and long-term company sustainability. Don’t let the question of benefits stand in your way of growth – contact us if you would like more information on options to leverage top contractor talent immediately.