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Scout Young CFO

Have you noticed an increase in using temp and contract workers in your industry?

Asked on May 9, 2013

Answers

Anonymous's headshot
Anonymous Director of Global Accounting • Sept. 19, 2012

Generally speaking....absolutely, but not for the more underhanded reasons that the gloom/doom folks are spouting.
1) Dispersed organizations: Hiring in your non-native state or country is much easier under contract. The best / brightest aren't necessarily next door.
2) Partials: Especially in the start-up space, you may not need a full-time head. More people are working partial hours.
3) Contract-to-hire: If you're using a headhunter, it is nice to try before you buy.
4) Thin funding: Before you kick off ADP and w2s, throwing a couple of bucks around pre-revenue may be necessary. 1099ing that is much, much easier.

Randy Miller's headshot
Randy Miller Partner • Sept. 19, 2012

Yes, and across industries I am seeing more and more that HR and Accounting functions are being outsourced into contract positions. I think that it is a trend that will continue as small to mid-size companies realize that they do not need the full-time staffing. For example in HR companies are moving to a model where instead of a department, there is only 1 employee who calls on outside resources as needed.

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Filed Under: Human Capital
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