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Why Companies Hire Contract Workers And The Downside Of These Short-Stint Roles

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Freelance work, side hustles and the gig economy are growing features of the modern workforce. In fact, nearly 60 million Americans consider themselves independent workers, according to an American Opportunity Survey by management consulting firm McKinsey.

There are attractive reasons for companies to hire contractors rather than full-time, permanent employees. Short-term contract workers provide on-demand services. Businesses can quickly hire them part-time to help with a sudden increase in demand without needing all the paperwork, benefits and expenses attendant with a full-time employee.

Typically, the compensation and billing for contract workers are managed by a third party, so the company doesn’t need to allocate human resources and payroll personnel to deal with all the paperwork, payments and figuring out taxes for remote workers in different states and countries.There is a major downside for the college-educated laptop class doing these short work stints. Hiring managers generally have a prejudice against contract workers.

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