As companies try to streamline operations and increase their profits, many human resource professionals are now looking at employees in a different light. Aside from trying to find the right candidate for a job, they are looking at ways they can cut costs while still maintaining quality services in order to maximise company profits. The amount of money spent looking for, hiring, paying and training new employees is analysed and used to help determine the companies’ profits and losses.
As businesses look for new avenues to reduce overall costs, human resource management has evolved to include different types of employment, like part-time employees and consultants. Particularly in light of the recent pandemic and the economic decline, trends towards lower cost employment have grown increasingly common.
Part-time employees, also known as casual employees who work thirty-five or fewer hours per week. In addition to working fewer hours, part-time employees don’t usually qualify for benefits such as health insurance or paid vacation.
To begin with, the benefit of using part-time employees is mainly that the cost per employee for hiring, orientation, and training is less than for full-time workers. This then enables the company to save on these costs and maximise on profits in the long run.
Another benefit of employees that work fewer hours is that employers can be more flexible with scheduling. If a position requires long hours to fill, hiring two part-time people can make scheduling easier than with one full-time employee. It also helps avoid overtime or time and a half, thereby reducing overhead for an employer.
In addition, part-time employees bring diversity to the workplace. This is especially true for workplaces that are maybe looking to increase the number of women professionals. This also has the added benefit of showing your clients and potential customers that you value diversity in your workplace.
There are few downsides to hiring part-time employees. With part-time employees, there is the risk that they may not be as committed to your company goals and work standards as they are not permanent employees and not feel like they owe your company loyalty.
Hiring part-time workers may lead to inconsistencies in work performance. This is because they may come in and pick-up where on employee left off and the quality of work may differ.
Due to the fact that part-time employees are not around as much or for consistent periods time, they have less contact and interactions with the permanent employees. This may result in full-time employees feeling uncomfortable around pert-time employees.
Consultants are hired for a specific positions or tasks and consider the companies they provide their services to, as clients. Consultants are not official company employees. They often have more than one client to which they offer similar services, and are therefore specialists. As consultants aren’t employees, companies don’t have to offer them benefits.
Hiring consultants saves companies money. Although companies pay consultants more per hour in the long run it actually costs more to hire, train and retain new employees.
Hiring consultants also has a long list of legal benefits, as independent consultants are not protected by the rights available to employees. For instance, consultants do not have the right to unionise. In addition, employees have the right to sue their employers for wrongful termination. Consultants cannot bring these types of suits before the court as they are bound by the terms agreed on in their consultants.
Independent consultants are difficult to secure due to their scarcity and overly booked schedules. It can take a while to get one booked and it can be difficult to get the same person to do another job for your company. This can then result in inconsistencies in the work done.
Due to the fact that consultants are not employees, they are consultants by numerous companies some of which may be your competitors.