Top Reasons That Enterprises Bring on IC's

The shift from jobs to gigs is happening so steadily that in the next decade, over half of the workforce will be made up of independent or freelance workers. The workplace revolution owes to many factors, including a generational shift in the workforce which values autonomy over security. Enterprises have found that this model not only plays to the strengths of the modern workforce, but also has real, tangible advantages over hiring a salaried employee. Here are four of the top reasons enterprises are embracing independent contractors (ICs) as the future of work:

Many enterprises have small to large scale projects that need to be completed in a set amount of time, but don’t have the internal resources to staff the project. They may not have time or money to go through the full on-boarding process to hire someone on as an employee. Instead, many enterprises will bring on independent contractors to complete these projects, so they can focus their efforts elsewhere. By hiring an independent contractor instead of a salaried employee, enterprises can be confident that the project will be done on time - and done well - without the day to day distractions of the office or long-term costs of a salaried employee.

When recruiting for a specialized role, enterprises can have a difficult time finding prospective employees with the right balance of skills and salary requirements. By opening up the jobs to independent contractors, enterprises can attract people with a highly specialized skill set who may be too expensive to hire on as a long-term employee. These independent contractors have experience going into organizations to complete a highly focused project, and are able to do so in the most efficient way possible. When an enterprise is open to a variety of staffing solutions, they’ll be able to attract the best talent.

While the hourly rate of an independent contractor may be higher than a salaried employee, an independent contractor will save an enterprise money in the long run. Independent contractors usually work on relatively short-term projects. Enterprises don’t have to provide benefits, tax contributions, or workers’ compensation insurance for these contractors, which become significant costs of salaried employees. Independent contractors also often work from home and supply their own equipment, saving the enterprise money on office space, supplies, and regular office downtime, as ICs charge only for the time they spend working on the project. The short duration coupled with the avoided costs makes bringing on an independent contractor considerably more cost efficient than hiring a salaried employee.

One of the major benefits of hiring an independent contractor is that they’re already a trained expert in their field. When an enterprise hires a salaried employee, their first couple months are dedicated to onboarding and training. It can be months before the enterprise sees their return on investment. Alternatively, an independent contractor is able to hit the ground running, and will often be able to complete the project in a fraction of the time.

Increased freelancer demand is driving innovation to make engagement of independent contractors as free flowing as the rest of the contingent labor market (maybe even more so). Likewise, new freelancer support products and services are enabling and fueling the dramatic shift in the workforce noted above. From integrated self-sourcing workflows and talent pool technologies to certified independent contractors and IC-specific insurance, enterprises are finding it easier, faster and more economical than ever to engage freelancers.

This blog written in collaboration by Bunker and IC Precheck.
Follow the collaborators at @BunkerHQ and @ICPrecheck.