This article offers the reader useful information about the pros and cons of having to rely on contractors and part-time workers.
Every business needs employees; without the workforce, a company would amount to nothing and there are a number of ways that you can get things done; you can directly employ people, or you can outsource the work to a local contractor. When you directly employ staff, as the employer, you must take on a lot of responsibility. Many small businesses do not wish to take on so much liability, therefore they use contractors and agencies that provide temporary workers.
The Pros Of Contracted Labour
There are significant benefits to using contracted labour, such as:
- No employer social security contributions – They are paid by their employer, not you.
- No sick pay – All benefits are paid by the contractor.
Injury is covered by the contractor – You have minimal compensation liability. - Able to request change of personnel – It is simple to change workers, call your contracts manager.
- No holiday pay – Paid by the contractor.
- Easy termination – A few days’ notice is all it takes to terminate a contract.
- Zero legal issues – The contractor bears all the liability.
The Cons Of Contracted Labour
There are a few potential drawbacks using outside labour, which include:
- Less likely to excel – A contract employee has no alliance with you and that usually means they will do as much as is necessary and no more.
- Difficult to manage – While this is a generalisation, it can be tough to manage a contract worker. You can talk to their manager, which might prove the solution.
- Less likely to be a team player – Agency employees might not be ambitious and may not be ideal for certain positions.
There are two perspectives to contracted labour – casual labour holds no liability and you don’t have to contribute to the employee’s social security or NI; the other important aspect of outside labour is suitability. Manual work is ideal for contract labour, when you can hire half a dozen workers for a week during your busy periods.
The Importance Of HR
Most companies outsource all HR needs to one of the top HR outsourcing companies London as well as other cities rely on, which covers recruitment, whether permanent or temporary.
There are many aspects of HR, such as:
- Recruitment
- Payroll
- Health & safety
- Workforce management
- Employee relations
- Staff training
By joining forces with a leading HR agency, your workforce will be well looked after, plus you are kept informed with regular reports. You might only require specific services; the agency tailors their services to suit the client and you can focus on other aspects of the business, safe in the knowledge that your employees are being well managed.
Temporary Labour
Without the temporary labour sector, many businesses would not be able to operate. Seasonal surges demand additional workers and if you are in need of temporary workers, talk to a leading HR agency, who have all the solutions. Dealing with an agency means you can be sure the workers know what they are doing and you, the client, always have the final say. After Christmas and New Year, you no longer have a need for additional labour, and the agency is ready to supply temporary workers at the drop of a hat.
A typical medium-size company would have a mixture of directly employed and contracted workers; there is a place for outside labour and many organisations prefer to use contractors for all the above-mentioned reasons. Yes, there is an element of reliance, yet you can easily switch labour providers, the market is very competitive and that is good for the client.