Technical Contractors – A Competitive Advantage
For many Massachusetts companies, the challenge to increase profitability continues in this difficult business environment. For companies seeking cost savings and the flexibility to respond quickly to changing market conditions, technical contractors may provide the solution.

Why Contractors?
Contractors provide companies the ability to increase and decrease staff efficiently, allowing for rapid response to ever-changing business environments. Contractors provide this benefit with little risk, as companies may terminate their services at any time. Additionally, since the contractor is an employee of the staffing firm that assigns him/her, the staffing firm is responsible for all payroll functions, insurance/liability, and benefits.

Many common workplace scenarios present ideal opportunities to use technical contractors. For example, technical contractors may be used to: staff project-level work when the required technical expertise does not exist in-house; staff during business upturns (this is particularly relevant of late, with many companies not sure if recent increases in business activity are sustainable); manage short-term business fluctuations; and fill critical technical personnel gaps while searching for direct hires.

The Bottom Line
Companies utilizing contractors may realize significant benefits to their bottom line:

• Contractors allow a company to control labor costs by converting labor, typically one of the largest fixed costs, to a variable cost. The true cost of the contractor is easily identifiable, as the company is charged one hourly rate inclusive of all costs associated with the contractor. The staffing firm pays workers’ compensation insurance, the employer portion of FICA, Federal/State Unemployment and MassHealth.
  
  
• Contractors help a company limit benefit expenses, which are often 20-25% in excess of payroll. The staffing firm provides contractor benefits which may include paid holidays and vacations, 401(k) plans, and access to group health plans.
  
  
• Contractors provide companies the opportunity to shift a significant portion of the administrative burden. If a company is using technical contractors, not only is it avoiding the expense of payroll taxes, insurances and benefits, but also it is off-loading the responsibility and cost of administering payroll and benefits.
  
  
• Companies avoid unemployment claims when using contractors. As layoffs of direct employees increase the unemployment rates paid on a company’s remaining employees, the savings in using contractors can be considerable.
  
  
• Contractors may decrease a company’s risk of making costly hiring mistakes. As many companies use the contract time as a trial period and eventually extend direct employment offers to contractors, they can be more assured that they are hiring the right individual.
  
  
• Companies using contractors are better able to focus on their core competencies - value-added activities that increase profits for the company. While the staffing firm focuses on what it does best, recruiting and screening candidates, key company personnel are more efficient as they are able to focus on business operations.

For these reasons and others, companies are looking to technical contractors to improve their ability to compete effectively in these trying economic times.

Triad Engineering Corp has specialized for over 32 years in helping clients fill their technical staffing needs on a contract and contract-to-direct basis. Triad is locally owned and operated and offers the most personalized service and experienced staff available. Please contact us at 800-649-1514 or visit our web site www.triad-eng.com for more information.