5 Benefits of Project-Based Hiring

Many companies still find it difficult to fill open positions that require in-demand skills. Nearly 70% of respondent anticipate Gen AI will increase competition, drive changes to their business models and require new skills from their workforce within the next three years, according to a 2024 PWC survey. 

In response, project-based hiring is becoming a go-to strategy for many companies to reassess their talent needs.

What Is Project-Based Hiring?

Project-based hiring occurs when a company engages independent professionals for projects that require additional resources or specific skills. These workers are brought in for a finite length of time to deliver results defined in a contract. Project-based hiring is a great opportunity for companies to change the way they source independent contractors.

5 Business Benefits of Project-Based Hiring

1. Convenient Access to Top Skills and Expertise

Today, many professionals with in-demand skills are leaving traditional employment to embrace independent contracting. Over 72 million Americans say they work independently, according to the most recent State of Independence report from MBO Partners.

This shift is driven by the desire for greater control over their careers, where they can choose projects that align with their expertise and interests. Independent contracting also gives them the freedom to set their own schedules, allowing for a better work-life balance.

The appeal of this work style is clear: Independent contractors can adjust their workloads based on personal needs and pursue a variety of projects without being confined by a set office environment. This flexibility gives them the opportunity to work from anywhere, travel, or even focus on personal passions while maintaining a steady income.

Explore: The Advantages of Hiring Independent Contractors Vs. W-2 Employees

2. Get Independent Talent to Work Faster

Independent professionals are experts in their fields with a great deal of real-world experience. Since they’re hired for specific projects, they are focused on meeting goals and completing deliverables as outlined in their contracts. This helps companies launch new ideas or complete projects faster.

To quickly identify and recruit talent, many employers adopt a direct sourcing program. This means looking for talent using internal resources instead of relying on a staffing company. With a direct sourcing strategy, managers can create a talent pool or virtual bench, allowing them to bring in contractors within days, or even hours, of opening a role.

See: 6 Ways to Build an Independent Talent Pool

3. Ensure a Full Workforce At All Times

Employee tenure is the lowest it’s been since the 1980s, with the average being just 4.1 years, according to the Bureau of Labor Statistics. With employees staying for shorter periods, it’s harder for companies to keep the skills they need to grow. As a result, more businesses are turning to independent contractors to fill these gaps and get the expertise they need.

Project-based hiring offers companies flexibility during times of high turnover. Using independent contractors allows businesses to access important skills without the long-term commitment of hiring full-time employees.

By mixing independent contractors with full-time employees, businesses can create a more adaptable workforce. This helps ensure that companies can keep the skills they need, even when full-time staff members leave or change roles.

Discover: 6 Ways Companies Can Build Stronger Relationships With Independent Talent

4. Create Flexibility and Cost Savings

A project-based staffing model can provide many cost-saving benefits. By hiring independent talent, companies can adjust their workforce to meet market demand without having a major impact on their budget.

Outsourcing work to independent contractors on a project basis is often more cost-effective than hiring a full-time employee. Once the project is finished, you don’t have to worry about continuing employment, saving your company both time and money.

Independent contractors bring in the specific skills needed for the task at hand. This way, companies can access the expertise they require without the long-term commitments of permanent employees.

Check Out: Working With Independent Contractors: 10 Do’s and Don’ts to Guarantee Project Success

5. More Growth Opportunities for Your Organization

With 72 million people working independently in the U.S., not using this talent could put your business at a disadvantage. Independent contractors bring specific skills and knowledge that can make a big difference in your projects. Ignoring this flexible workforce means missing the chance to get the exact help you need, when you need it.

Project-based staffing offers the flexibility to adjust to changing business needs. Whether you need to expand for a specific project or scale back during tight budget periods, contractors can help without long-term commitments. This flexibility lets your company stay adaptable and quickly respond to changing priorities and market conditions.

Independent contractors can also increase productivity and help handle heavy workloads. Their specialized skills allow you to complete tasks faster and more efficiently, so your internal team can focus on other important projects. Contractors can jump in quickly and make an immediate difference in your work.

Learn More: How to Recruit Independent Contractors

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For more information on contingent workforce management and how to work with independent contractors, visit MBO’s blog for the latest news and insights. We cover topics such as workforce compliance, AI technology, the benefits of Employer of Record (EOR) services, and much more to help you stay informed.