Your business workforce can be maintained through a contingent.
A small but mighty workforce can help your small business to grow! The contingent workforce is defined as the practice of more employers utilizing workers on a non-permanent basis. As a small business owner, you can tap into this service instead of employing a traditional, full-time employee workforce.
If a current employee goes on maternity/paternity leave or leaves to care for a family member, there will be a temporary position that opens up. If your business is experiencing a higher demand of work which leads into overtime, then a contingent workforce will allow your business opt for a non-permanent, project-based worker to fill in the seasonal increase.
The U.S. Department of Labor Fair Labor Standards Act provides a framework to help determine whether a worker qualifies as an independent contractor or an employee. This includes:
- The nature of the work relative to the overall business operation.
- The length of the working relationship.
- Who owns what in terms of facilities and / or equipment required to perform the work.
- The nature and degree of who controls the work performed, the standard of quality, the rate of compensation, and whether the worker works for other clients.
- The worker’s profit / loss position in the relationship.
- The level of skill required to perform the work, and the extent to which the worker advertises themselves as available for contracting with other employers.
To support compliance, the employer must require proof of the independent contractor’s business entity, business insurance, and Workers’ Compensation Insurance. Going contingent allows smaller businesses to evaluate what skills are needed to grow the company, and allows you to focus on the bigger picture of moving the company forward.