Why HIRE when you can RENT – SCM Contracting booming

February 10, 2014

IT and Engineering has been benefitting from a strong Contingent/Contract workforce for over twenty years now. They really do understand the cost saving associated with Renting talent rather than Hiring them. Today, other critical business areas within organisations are seeing the benefits of this model. Today EMERGING talent requirements are being met by utilizing Contractors the same way.

We have found this to be especially prevalent in the area of Supply Chain Management which is where Argentus focuses its recruiting energies exclusively as a niche Recruiting Partner.  Companies with talent needs in Strategic Sourcing, Supply and Demand Planning, Distribution, Indirect & Direct Procurement and Logistics professionals to name a few are jumping on the Contract band wagon in a BIG way.

The major change would be related to timing, flexibility, efficiency and cost for companies. Contract staffing is meeting that need. The whole concept of professional “super-temps” is knowing there is access to a nimble workforce of professionals at ones immediate disposal – being able to plug-in and work high level knowledge professionals in companies when there are talent needs is exceedingly attractive. And that demand is growing exponentially.

SCM experts at all levels in this emerging Contract model – from Analysts to Managers and Executives in Supply Chain & Strategic Initiatives are all part of the overall staffing equation that are helping companies stay globally competitive and on track to keep their bottom lines’ strong. The availability for contract workers is increasing all the time and companies are readily taking advantage of these resources at all levels. It’s just good common sense.

There are many indirect ways that hiring high-skilled contingent workers translates into cost savings for companies (for example through the efficiencies that Strategic Sourcing experts uncover), but there are some direct and simple cost savings to be had through hiring contingent workers.  While the hourly rate for SCM contract professionals is typically higher than a full-time employee, the overall financial burden to a company is substantially less.

Employee benefits for example, which is a large part of an employee’s compensation as well as potential termination costs, are factors to consider over and above salary and are very real expenses for companies.  Contract staff do not receive benefits nor do companies need to worry about the cost of what happens if and when someone has to be terminated or a contract needs to be short-ended. Contractors are easily terminated if workload or project need changes with as little as two week’s notice. Contractors only get paid for the hours they work and that makes contractors a cheaper solution all around.

Additionally, hiring contractors through a third-party contract firm (like Argentus) that will source and have contractors as their employees rather than hiring direct is just smart business. The third party takes on the burden of candidate sourcing, screening, and on boarding, as well as any associated Employment government remittances where appropriate.

Contingent Staffing Solutions @work – it’s the new PERMANENT workforce. It’s certainly worth a conversation about how Argentus can assist your organisation augment its staffing in the Supply Chain Management space.

Reach me at bhann@argentus.com to learn more or call me at 416-364-9919

Over and out for now

Bronwen

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