Contract Engineering Staff – Providing a Competitive Advantage
In what continues to be a challenging business environment for numerous industries, firms in MA, NH and RI are finding it difficult to improve profitability. If you seek cost savings along with the flexibility to respond quickly to changing market conditions, engineering contractors may provide the solution.
Why Engineering Contractors?
Our clients primarily use engineering contractors to staff short- or long-term projects with experienced technical professionals. Some have been through a layoff cycle and need qualified staff to help complete a new project. Others are expanding rapidly and require specific technical expertise to ensure success on an important project. In both cases, given continued uncertainty, they have resisted hiring permanent staff and instead have turned to engineering contractors.
Contractors provide the ability to add and reduce staff efficiently, allowing you to rapidly respond to your business environment. Also, since contractors are TRIAD employees, we are responsible for all payroll functions and taxes, insurance/liability, and benefits.
The Bottom Line
Companies using engineering contractors may realize significant benefits to the bottom line:
- 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 you incur one hourly rate inclusive of all costs associated with the contractor. We pay workers’ compensation insurance, the employer portion of FICA & Medicare, Federal/State Unemployment Insurance (UI) and MassHealth.
- Limit benefit expenses, which are often 20-25% in excess of payroll. The contractor is not your employee and therefore you do not pay for holidays, vacation, health insurance, etc. We – not you – provide any contractor benefits.
- Avoid unemployment claims. Layoffs of direct/permanent staff increase your company’s UI rate. However, when you let a contractor go, we – not you – incur the UI rate increase.
- Minimize the risk of making costly hiring mistakes. Many companies use the contract time as a trial period and ultimately extend direct employment offers to contractors. Given the opportunity to ‘try before you buy’, you can be more assured that you are hiring the right individual.
- Shift a significant portion of the administrative burden. Not only avoid the expense of payroll taxes, insurances and benefits, but also off-load the responsibility and cost of administering payroll and benefits.