Why and When should companies use Contingent labour?

Dominic Bareham 19.09.2018

As much as we try to predict the future for our organisation, and despite all the technology available to us, it is not always possible to predict your workforce needs.

The ability to utilise the contingent workforce can be a huge benefit to a company when it has certain workforce demands that need to be met. 

When is a good time for an organisation to employ contractors?

Firstly, an organisation benefits from employing contractors when they require more specialised skills for a shorter duration, particularly in a time of business change and transformation. Employing a contractor with the desired skillset is cost and time beneficial to your company, and their engagement can develop the skills of in-house employees also.

Secondly, as a means of managing rising labour costs while eliminating skill shortages and to support the current workforce. This also allows for agility in a rapidly changing market place and the ability to provide a varied workforce to meet current market demands in a cost-effective manner.  

What are the benefits of hiring contractors for an organisation?


One of the main benefits associated with the hiring of contingent workers is the reduction in cost. As labour costs are continually increasing, the contingent workforce offers an opportunity to reduce the cost of employment as they are not required to pay holiday, sick leave or some of the taxes associated with a permanent employee. 


It is inevitable that the contingent workforce provides a large degree of flexibility to an organisation. This has become increasingly important in allowing companies to scale up and down as required with minimal disruption to the bigger picture. With the contingent workforce being so large, it allows an organisation to be innovative and easily resource for specialised skill sets that are required for an interim period. 

Reduced Timelines 

One of the major drawbacks of hiring an employee is the time taken from initial screening through to onboarding, however, by hiring contractors an organisation is guaranteed to secure talent much quicker. This has proved vital for organisations when an immediate and unforeseen need arises.  With the use of recruitment agencies, finding specialised talent in a tight timeframe can easily be achieved due to rich candidate pools with specialised skills sets. 

The most efficient process for securing top contracting talent is by working with a contract recruitment team. A recruitment consultant will be able to decrease the risks associated with the hiring process, but also significantly decrease the time associated with hiring by providing the service of pre-screening, shortlisting and providing reliable and successful contractors. 

To find out more about how Morgan McKinley can assist you, please reach out to Aoife today - apower@morganmckinley.com.au

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