The Talent LogistiX Blog

Insights from the TLX team.

How much Contract Labor should you have in your Workforce?

One of the critical questions that businesses often face when building a workforce is whether to hire full-time employees or contract labor. There are various factors to consider when making this decision, including cost, skill required, flexibility, and the company’s overall strategy. However, one question that remains unanswered is how much of the workforce should be contract labor? We recommend 20%-30% of your workforce should be contract labor. TLX is ready to provide insights on how companies can navigate the challenges of finding the right candidate for the job.

Flexibility is Key 

One of the primary reasons for hiring contract labor is flexibility. Whenever there is a surge in work or a project with a specific deadline, contract labor can be an excellent solution. You can bring in additional workers who are professionals and have the right expertise to get the job done. Once the project is completed, you can reduce or eliminate the contract workforce. Contract labor provides the ultimate flexibility; it can grow or shrink depending on the company’s needs. When industries such as manufacturing and industrial trades need to adjust to changing market conditions rapidly, contract labor can be an excellent solution.

Quality can Trump Quantity

One of the concerns that businesses may have when considering contract labor is whether or not they will get qualified and quality candidates. However, TLX, a workforce business solutions provider for the manufacturing and skilled trades/construction industry, fully vets all candidates to ensure they have the necessary skills. Quality can always trump quantity since it’s better to have a smaller team of highly skilled and qualified staff than a large team of workers who may not have the necessary experience to complete the tasks at hand.

Mitigate Risk

Contract labor can be an effective way for manufacturing businesses to mitigate risks and manage their workforce more efficiently. By hiring contract workers, employers have more flexibility and expandability. If there is a lull in production or a sudden change in demand, contract labor allows businesses to adjust their workforce quickly without incurring unemployment costs because these employees are on TLX payroll, not yours. Additionally, contract labor provides a cost-effective way to access specialized skills and expertise that may not be available in-house. Overall, contract labor can be an effective tool for manufacturing businesses looking to stay agile and competitive in a rapidly changing marketplace.

Focus on Core Competencies

Outsourcing is a valuable strategy for businesses that are seeking to streamline their operations and focus on their core competencies. Whether it’s staffing or other business functions, outsourcing allows companies to gain access to specialized expertise, reduce costs, and increase efficiency. When it comes to staffing, partnering with TLX can help businesses find the right talent quickly and efficiently. Additionally, they fully vet all candidates to ensure that businesses receive a candidate of quality and character.

With TLX, businesses can rest assured that they are working with an experienced partner dedicated to their success in outsourcing. So what are you waiting for?  Contact us today!

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