The 2019 New York Times news that suggests contract workers are considered as ‘second-tier’ employees in giants like Google has created a negative image of contract workers.
After this coverage, it is seen that job-seekers are taking less interest in opportunities offered by Contract Staffing companies.
However, we are up with some more facts.
A recent survey conducted by NPR shows that 1 out of 5 workers in the US are working on a contract basis. Further, according to an estimate of the Staffing Industry Analysts, 31% of 48 million workers are contingent workers. No doubt there is more to the story than being a ‘second-tier employee.’
There are various reasons why companies hire workers through Contract Staffing Services. Maybe because their needs are temporary, or they want to take a trial run of the employee before they make them a permanent employee.
Usually, tech companies opt for contract staffing as it reduces the back end cost related to recruitment. This allows companies to ramp up talent and focus more on the core operation of the business.
There are also some common myths related to contract recruiters and staffing that you should not believe. We’ll debunk a few here to help you make a sound decision.
Contract Staffing Myths
1. Blue-Collar Workers Do Contract Jobs
The high-tech industry dispels this misconception as they hire contract workers regularly for white-collar roles such as programmers, web developers, IT and mechanical engineers, etc.
An American Staffing Association report depicts that in California 2,613,500 people are working under contract out of which 20% of workers are in the IT and engineering sector.
2. Contract Employees get Less Payment than Full-time Employees
This is a myth, we can easily declare it as a misconception with our above-mentioned point; high tech companies hire contract employees for white-collar roles.
As the need for contract workers can be very urgent, the time duration of the project can be short, and the requirement of hard to find skill sets thus employers agree to pay more to contract workers.
3. Classification of Contract Employees as Independent Consultants Instead of W-2 Employees
In general scenario employers consult the Contract Staffing Company to search, screen, and hire contract employees as W-2 employees; this makes the contract employee an employee of the staffing firm.
In some cases, the employer chooses and involves the contract employee as a 1099 independent consultant for a special task.
4. Contract Workers don’t Get Employee Benefits
Contract workers also get benefits up to some extent as they are employees of some staffing agency. Usually, they get benefits of 401(k), health and dental insurance, PTO, and sick days as per staffing agency policies.
While 1099 consultants don’t get any benefit as they are independent consultants.
5. No future Lies With a Contract Job
As per the ASA survey report, 35% (one-third) of contract workers get permanent job offers by the client where they were employed for a project. Also, 66% of this one-third accepts the permanent employment offer. Employers hire workers on contract to evaluate them during the contract period; if found suitable offer them the permanent position.
Virtual Recruiters is a leading US recruitment agency – we can help you have clear thoughts about Contract Staffing and how it can be beneficial for you. To learn more about our services, get in touch with us today!