Featured Insights

Michelle Palasek has 20 years in the staffing industry working in sales and marketing operations. She currently serves as a Sr. Marketing Communications Specialist at SGA.

Do You Know When to Budget for Contingent Labor?

Do You Know When to Budget for Contingent Labor?

Fall often means budget season and as you plan, are you considering your staffing needs for the next year? Your team may be excelling at their current workload. But what challenges lie ahead? Will your team be able to keep pace alongside new projects and objectives?

Let’s look at some reasons you might need outside talent so you can include a comprehensive staffing plan in your budget.

1. Planned Project-based Work

Project-based work has a fixed timeline and often requires specialized skills. Contingent labor is scalable and can allow you to quickly ramp up the skills needed as the project work increases. Then you can reduce talent as the project winds down. Depending on the project you may need a single consultant or an entire team. Resources may be used to maintain current operations as you transition to new processes and platforms.

The selection process can be less comprehensive too. You should seek to understand technical skills and enough people skills to feel confident each resource can perform their job. These administrative tasks can even be fully outsourced to a trusted staffing agency. Once resources are selected; they can be onboarded quickly to keep a project on time.

2. Cyclical Workloads

Does your website need updates in preparation for an annual product launch? Do you need to ensure that your financial statements are completed on time and with the necessary accuracy? For businesses with seasonal peaks or specific, time-sensitive demands, contingent labor can be an ideal solution. Whether it’s extra support for a website overhaul, product rollouts, or meeting critical deadlines, having a flexible, skilled workforce available to step in when needed can be a game changer. This approach not only ensures you meet important milestones but also allows your core team to remain focused on their primary responsibilities.

For industries with cyclical or fluctuating workloads, contingent labor provides the flexibility to scale up or down efficiently without the long-term commitment of hiring full-time employees. If your business experiences high-demand periods, such as end-of-year reporting or product launches, having a staffing partner ready to provide qualified resources ensures your team can handle the increased workload. This arrangement reduces the administrative burden of sourcing, vetting, and hiring temporary employees, allowing you to quickly address resource gaps and stay on track with critical projects.

3. Specialized or Technical Expertise

Contingent resources are an asset for organizations seeking specialized expertise on a temporary basis. When a company faces a need for specific skills or knowledge that are

not available internally, contingent talent can step in to provide focused, high-level support. This type of external resource is particularly beneficial for tasks that require a unique or niche skill set, where hiring a full-time employee may not be justified or feasible. For instance, businesses might engage contingent professionals for one-time services such as conducting a comprehensive security audit, assessing potential vulnerabilities, or ensuring compliance with industry standards.

Additionally, contingent talent can offer a fresh, objective perspective, which is often essential when embarking on complex or critical projects. For example, companies may hire contingent experts to redesign their network infrastructure, ensuring that the system is not only optimized for current needs but also scalable for future growth. In such cases, these professionals can bring a wealth of experience, drawing on their exposure to best practices from various industries. By leveraging external consultative services, organizations can effectively address gaps in their internal expertise while benefiting from specialized knowledge tailored to the specific requirements of the project.

4. Short-term Coverage

Employees occasionally will miss work for longer timeframes such as parental leave or a sabbatical. While you cannot always know when these leaves will occur, a little preparation including budgeting for temporary staff provides stability. For example, project management is an area that needs consistency and would benefit from a short-term resource.

From Budgeting to Prepared

Contingent labor is a cost-effective choice for the scenarios listed above. Contingent resources should already be capable of performing their assigned tasks. This means minimal training before productivity. Also, you only commit to labor costs for as long as they are needed.

Now that you have a better idea when and how your organization can benefit from contingent labor, you’ll be sure to incorporate this key tool into your budgeting process. As a result, you’ll have the flexibility to respond to your changing needs as the year progresses.