Managing a growing business can be difficult. To develop and thrive, your company must overcome enormous challenges. A proper business strategy is essential to raise the company’s competitiveness and profit. One effective strategy is hiring third-party contractors.
Third-party contractors are independent professionals that provide a service on your behalf. An electrician, for example, may sign a contract with an electrical firm to respond to work orders in their area even though they are not formally employees of the company.
Hiring the services of third-party contractors has pros and cons. However, with modern processes and computer applications, managing third-party contractors is becoming less complicated. You can use a variety of management solutions to make managing third-party contractors more efficient.
There are several benefits to hiring third-party contractors.
1. Save Money
Using the services of third-party contractors can help your company complete specific tasks while also saving money. According to some estimates, hiring an independent contractor can save employers up to 30 percent.
Hiring regular employees to complete duties that third-party contractors can fill can be costly.
Employers are also not required to pay the third parties’ insurance or benefits. Employers do not need to pay the third-party contractor’s payroll taxes, insurance, and other benefits.
Third-party contractors are responsible for their own taxes and benefits. Third parties also don’t get paid when they don’t work. So you won’t be paying someone unnecessarily during slow times for your business.
2. Save Time
When a company hires a new employee, there is always a significant lag time between their arrival and when they are ready to contribute to the organization. As a result, onboarding new employees can be a time-consuming and complicated procedure.
HR professionals generally agree that onboarding should take approximately three months. During this period, new employees are trained by both management and peers. Onboarding will ensure that they have the abilities necessary to carry out their responsibilities.
Hiring third-party contractors saves you from all the delays caused by lengthy onboarding. They are already experts in their field, so there is no need to train them. For example, you can hire third-party contractors who specialize in a specific area such as maintenance, human resources, law, bookkeeping, project management, and other areas. Third-party contractors can already handle the work competently, and you don’t have to hire and train additional regular staff, saving you time and money.
3. Offer Expertise
The demand for third-party contractors is increasing. According to the McKinsey Global Institute, between 20–30 percent of the workforce in the U.S. and the European Union are engaged in some form of independent work.
The appeal of hiring third-party contractors arises from the fact that they can share their experience and expertise. For example, you can hire an experienced bookkeeper as a third-party contractor to help with a tech company audit. You are assured that the bookkeeper is someone who is already an expert in tech industry audits. This level of expertise benefits a business greatly by depicting them as an authority in their industry.
4. Easy Management Tools
Managing third-party contractors has been a logistical challenge in the past but not anymore with automated client management software available.
They can provide a simple work order template so you can easily customize your work orders. This is convenient for contractors who may have several clients they work for as they’ll appreciate a simple and easy-to-use way of communicating and receiving job details.
Additionally, you can automatically send these work orders to third parties through software without tracking them down and sharing the information over the phone. The customizable work order form template provides the foundation for your team to prioritize and perform every maintenance operation effectively.
5. Staffing Flexibility
Hiring contractors allows you a great deal of flexibility in staffing. Because third-party contractors specialize in specific areas of expertise, you do not need them to work all of the time. It gives you more flexibility in staffing because they only work when you need them to.
Third-party contractors do not need to be on your payroll and report to work regularly. However, sometimes you may require temporary assistance in other locations or need the services of an expert contractor to complete a task. You can also hire third-party contractors to cover more geographic areas extending the range of your business.
Contractors are Important Resources
Third-party contractors are cost-effective options for meeting seasonal demands and specialized work. They are usually specialists and are a critical and strategic resource for many organizations. You can use them to scale your business up and down as you grow easily.