Besides Logging, Temporary and Employment Services showed the most gain in new workers in 2013 according to the Wall Street Journal. I believe that this trend will continue. With increased regulation on employers and the high cost of benefits, it makes more fiscal sense to hire temporary or contract employees, especially for small business owners.
The difference between a temporary worker and a contract worker is vast though. Temporary workers are usually procured through a service and are transient workers, requiring income while looking for a full-time position with benefits. Contract workers usually own their own business, and provide ad hoc or specific assignment work for various employers.
Other benefits of hiring a contract worker over a temporary worker include:
- Usually no middleman – since you are contracting directly with the employee, there are no service procurement costs, which equates to lower rates.
- Reduced training time – because there is no turnover, you only need to train once and then can call on the contractor when needed.
- Higher dedication to work product – work performed is a direct reflection on the contract worker and their business reputation.
- Experience – Chances are higher that a contract employee will be more skilled in his/her field, than a temporary employee, since the contractor has built his/her business around their skill sets.
- More references available – If the contractor is good, references and word-of-mouth referrals should abound. If the contractor is bad, expect bad online reviews.
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