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From a labor and employment perspective, the last two years have been incredibly tumultuous. 2020 saw unemployment soar from 4% to more than 14%. More than 20 million Americans lost their jobs. Then, in 2021, we experienced the Great Resignation, where four million Americans quit their jobs in one month along. The one area of employment that didn’t decline was contracting. Today, there are 44 million contract and temporary workers in the U.S. What is next for the future of contract staffing and how can you prepare? 

Is Contract Staffing the Future?

The Growing Future of Contract Staffing 

Today’s worker is agile. Since the pandemic, the growth of remote and contract workers has skyrocketed. Companies have and are developing contract employment strategies, whether it’s to employ temp, temp-to-hire, contractors, or independent contractors.  

Digital technology enabled portals for self-service HR platforms. You can now work anywhere from any device—as long as you have a Wi-Fi signal. HR teams have moved to platform-based one-click hiring. There are no longer pages of resumes on the desk of hiring teams. Now we have one-click hiring, and the data shows us that the simpler it is to apply, the better your chances of landing quality talent. 

Contracting offers employers a streamlined hiring process, especially if you’re working with an employer of record (EOR) to manage your contractors. EOR organizations use hiring platforms that enable the contract worker to manage benefits and onboarding.  

From an employer perspective, the skilled contractor supply is particularly positive these days. In 2021 we saw many technical, engineering, healthcare, accounting, and other skilled workers leave their traditional jobs for contracting. Today, you can find everything from IT analysts to specialty trade construction workers, engineers, marketing managers, and even traveling nurses that work under contract employment models. So many of these professionals have moved to this work arrangement it’s necessitating new work arrangements that handle the cadres of contractors that companies are hiring.

This is particularly important because the legal landscape surrounding contract employment varies by state and federal jurisdiction. It is also rapidly changing. Revisions to the Fair Labor Standards Act (FLSA) happen fairly frequently now, as we grapple with the idea of contractors versus full-time employment and what that means from a legal perspective. For companies to manage the risk associated with a diverse labor pool, it makes sense to outsource the management of these contractual arrangements to an EOR. 

How an EOR Can Prepare You for the Future of Contract Labor? 

An EOR assumes the responsibility of your hiring functions from contract to the first day and beyond. While a staffing agency can find the talent, an EOR handles the risk associated with the employment contract. FoxHire is a national EOR offering employers assistance with everything associated with employment, including: 

  • Financial 
  • Payroll 
  • Taxes 
  • Unemployment 
  • Invoicing and collections 
  • Administrative 
  • Onboarding 
  • Background checks and drug screens 
  • Timesheets 
  • Benefits 
  • Workers’ compensation 
  • HR functions 
  • Reporting 
  • W-2s 
  • Insurance 
  • Health insurance 
  • Retirement 
  • Compliance 
  • Legal 
  • Contracts 
  • I-9 
  • IRS compliance 
  • DOL prevailing wage 

Are You Prepared For The Future of Contract Staffing?

The new world of work requires new partnerships. Find out how FoxHire can help. 

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