5 Benefits of Project-Based Hiring

The modern business model is changing at the same time that the job market is heating up. Even though unemployment is down to historic lows, many enterprises still find it difficult to fill open positions that require in-demand skills. As a result, many companies are turning toward project-based staffing to remain agile and competitive. 

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 staffing is a great opportunity for companies to change the way they source labor. 

5 Business Benefits of Project-Based Hiring 

1. Access to the best talent and skills

Today, many professionals with in-demand skills are moving away from traditional employment and in favor of an independent contracting model. This work style allows more control over their career and more flexibility in their non-work life.

Up next: Achieve Workforce Agility by Engaging Independent Contractors 

2. Get to market faster

Independent professionals are experts in their fields and have a wealth of real-world experience. Because independents are engaged for a specific initiative, they are fully dedicated to achieving project goals and meeting the deliverables outlined in their contract. This allows companies to get to market faster with new ideas or additional projects. 

In order to quickly engage this talent, many managers use direct sourcing. Direct sourcing involves finding talent for an open project or role using internal resources rather than a third party such as a staffing company. With a direct sourcing strategy in place, managers can build a talent pool or virtual bench that can allow them to deploy contractors in days, if not hours, after a role is opened. 

Learn more: 6 Ways to Build a Virtual Talent Pool 

3. Better manage turnover

We are in an era where the power is in the hands of the worker. Employee tenure is the lowest it has been since the 80s: just 4.1 years, according to the Bureau of Labor Statistics. 

Project-based staffing allows companies to build an optimized workforce that blends independent talent with employees. This model helps companies maintain access to critical skills even if top employees don’t stick around. 

Check out: 3 Ways to Make Direct Sourcing Part of Your Workforce Management Strategy 

4. Flexibility in cost models

Organizations need to be increasingly judicious with cost expenditures. A project-based staffing model offers many opportunities for cost savings. Independent talent engagement allows companies to scale up and down as needed to meet market demand without adding heavily to their bottom line. 

In many cases, outsourcing talent on a project basis is more cost-effective than hiring a permanent employee who may not be needed once the project is finished. Independent contractors are 100% utilization—they provide the talent you need without the demands of continued employment. 

Up next: Engaging Independent Contractors: 10 Do’s and Don’ts to Guarantee Project Success 

5. Increased ability to focus on the future

Project-based staffing gives you the flexibility to grow and innovate when you can do so, or scale back when budgets get tight.

Independent contractors increase productivity, meet workload peaks, and get tasks done more quickly. There are currently 72 million people working in the US as independents. If you’re not engaging this pool of workers, you may be putting your business at a disadvantage. 

Learn more: How to Source Consultants for Projects 

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