The recent failure of Silicon Valley Bank, has sent shockwaves through the business world. One of the major lessons learned from this event is the importance of managing risk and being flexible. Contingent labor, or workers who are hired on a temporary or project basis, can offer significant benefits in the aftermath of the SVB collapse.
Here are some of the key benefits of using contingent labor:
Scalability:
By using Contingent labor, it allows businesses to quickly scale up or down their workforce as needed. This is particularly important in the aftermath of the SVB default, as businesses may need to quickly adjust their operations to mitigate supply chain disruptions.
Cost-effectiveness:
Contingent labor is often more cost-effective than hiring full-time employees. Businesses can avoid the costs associated with recruiting, hiring, and training permanent employees, and they can also avoid the costs associated with employee benefits and taxes.
Access to specialized skills:
Contingent labor can provide businesses with access to specialized skills and expertise that may not be available in-house. This is particularly important in industries that require highly specialized skills or knowledge.
Flexibility:
Contingent labor offers businesses the flexibility to hire workers for specific projects or periods of time. This allows businesses to quickly adapt to changing market conditions and to take on new projects without committing to a long-term employment relationship.
Reduced risk:
Contingent labor can help businesses mitigate risk by allowing them to test out workers before committing to a permanent hire. This can help businesses avoid the costs and disruptions associated with a bad hire.
Improved productivity:
Contingent labor can help improve productivity by allowing businesses to bring in additional workers during peak periods or to fill gaps in their workforce. This can help ensure that projects are completed on time and within budget.
In the aftermath of the Silicon Valley Bank default, businesses are looking for ways to manage risk. Contingent labor can offer significant benefits in this regard, allowing businesses to quickly adjust their workforce as needed, access specialized skills and expertise, and reduce costs and risk. As businesses continue to adapt to changing market conditions, using contingent labor is likely to become an increasingly important part of their workforce strategy.
Jordan Schultheis, National Account Executive at Amerit Consulting