Contingency staffing provides flexibility in the workforce. When a new project comes up or you win a new contract, you can hire a large contingent workforce in a short amount of time. Contingent employment services include temporary employees, independent contractors, freelancers and consultants.

In addition to providing flexibility, a contingent workforce saves you money. Staffing contingency workers frees you from the costs of employment taxes, workers compensation and benefits. Some disadvantages include training costs, lack of loyalty to the company and a possible negative impact on the morale of your permanent employees. Use a contingent employee in any area where you need additional employees.

1. A temporary contractor is usually a short-term administrative or clerical worker.

2. Hire independent contractors who are engineers, programmers and other highly-skilled workers.

3. Hire consultants on a contingent employee basis when you need executive-level help.

Action Steps
The best contacts and resources to help you get it done

Let contingent staffing services recruit future contingency workers

If you rely on a staffing company to recruit and screen employees, you'll save the cost of recruiting. Staffing agencies typically act as the employer of record for your contingency workers and charge you a fee for their services.

I recommend: Staffing companies with a national presence have the most resources to help you find the employees you need. Adecco provides staffing to meet every need, from clerical to legal to IT. Look to COMFORCE for aerospace, health and other professional staffing needs. Westaff offers an on-location staffing program to help manage your contingency workforce.

Analyze your needs with professional contingent employment services

Some contingent staffing companies specialize in helping you analyze your contingency workforce needs. In addition, they work with you to make sure your contract employees meet the IRS definition so you don't end up paying fines and back taxes for misclassified employees.

I recommend: Spherion offers a program called Contingent Workforce Compliance Solutions to help you assess your needs and comply with government regulations. Allegis Group Services offers a workforce evaluation. Try the handy compliance calculator on the Albany website to evaluate your risk.

Pay your contingency workforce through a contractor payrolling service

In order to better manage your contingency workers, you may want to use a payroll service to act as the employer of record and to pay your independent contractors. These companies often benefit a contingent employee by providing retirement savings plans.

I recommend: Hermanson's Employment Services offers low fees and is one of the few payroll companies that publicly discloses their markup rates. Synergy Services also act as the employer of record and provides payroll services.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Don't overlook local staffing companies when you need to build a contingency workforce. They often specialize in the industries represented in your local economy.