The current job market is more competitive than ever. With unemployment rates at a historic low, businesses find it harder and harder to fill vacant positions. This has led to an increase in project-based staffing, a more cost-effective solution for companies looking to get specific work done quickly and efficiently. This article will explore the cost-effectiveness of project-based staffing and discuss some of the factors that companies should consider when deciding to hire temporary workers.
What is Project Based Staffing?
Project based staffing refers to when a company needs to bring on more employees for a particular task or project that requires more resources. In cases such as this, it makes more sense to bring employees in for a limited time. Therefore, because this is only temporary for the project’s life cycle, they are not considered full-time employees. This also saves time onboarding approved vendors, sourcing, training, communication, and compliance.
At first glance it may feel like utilizing a large volume of project resources could be expensive. While it could be a more expensive option, take some time to consider the following important factors:
- How much time and how many internal resources will it take to staff the initiative?
- How will their focus on this project-based initiative affect other important hiring initiatives at the company?
- What if the internal resources are not able to be fulfilled on time, would the client relationship be at risk and/or could there be a larger revenue impact?
More often than not, the opportunity cost of losing a large-scale client makes it much more cost-effective to leverage project-based staffing.
The Cost Effectiveness of Project Based Staffing
One of the benefits of project staffing is reducing overall staffing costs. You may not have the people you need to get the job done, but you also don’t need them forever. When hiring an employee full time, you have to consider salaries, benefits, and even permanent equipment costs. As a result, these costs can add up fast, especially after you finish a project and the need for these employees diminishes. If you have a workforce that is largely comprised of non exempt workers, you may also save extensively on overtime costs.
Project based staffing addresses this problem by enabling you to hire highly qualified individuals only when the need arises.
You Won a Project but Don’t have the Staff
Your company just won a new project, congratulations! But now that the celebration has ended, how exactly will you fulfill the roles necessary to exceed expectations? You not only need mass staffing to handle this new project, but they need to have the experience and capabilities to get the job done correctly. Project-based staffing allows companies to find the perfect balance between flexibility and stability, with an eye on your needs.
You Get Funding and You Need to Scale Fast
Scaling is hard work. It can be tempting to scale quickly and thoroughly when you receive funding from an investor. But this may not always lead your company in the right direction. Sometimes, rapid growth means sacrificing quality or customer satisfaction for faster revenue gains.
With project-based staffing, you can get the right people to scale at an accurate pace. But, most importantly, you will also get highly skilled individuals who are trained and ready to excel at any challenge your company needs to tackle.
You Can’t Find the Talent Full Time but Still Have a Job to Do
It’s no secret that finding the right talent for the job is tough. According to a report from the Department of Labor, the number of people quitting their jobs in January was at an all-time high this year. The competition for great talent can be fierce, with 4.3 million leaving and not returning to work within the month.
The good news? There’s no need to waste time on onboarding and training when you can outsource it all! In addition, working with a good project staffing company like Atrium can help you save time on pre-employment screening, timesheet management, invoicing, and reporting.
Is Project Staffing Right for You?
Trying to staff a new project can be a daunting task. You have to find the right people with the right skills, but you also have to train them fast. If you’re looking for a more efficient and cost-effective way to staff new projects, project-based staffing may be the answer.
