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3 Reasons Your Small Business Needs Flexible Talent

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Small businesses need help, and lots of it.

Compared to large enterprises, small businesses often don’t have the resources to quickly pivot and hire whatever talent is needed at the time. In 2020, Paycor found that small business spending on labor can add up to almost 70 percent of total costs, meaning that small businesses that want to hire new talent often don’t have the funds to do it.

And if they don’t, small-business owners risk losing their share in the market to larger companies who have the means to recruit resources faster.

But there is a solution. Ever since the first American corporation, Boston Manufacturing Co., started in 1813, workers were divided into two groups: full-time and part-time. Now, there’s a third option: flexible talent. Independent contractors, also known as freelancers, offer a way for businesses to get the talent they need on-demand without typical hiring processes.

Here are three reasons small businesses should consider harnessing the power of flexible talent in order to grow their business without hefty hiring costs or commitments.

According to Investopedia, the average cost of a new hire can be up to $1,500 per employee, and it can take up to six months just to break even on these investments. In addition to the high costs of onboarding, SHRM found that the average time to hire a new employee is 42 days — compounding an incredible delay onto an already costly process. Unfortunately, employees don’t always stay in their role long enough to justify the money spent on them. The United States Department of Labor revealed that a failed hire can cost businesses up to 30 percent of the employee’s first-year earnings, up to $240,000.

For small businesses trying to survive as everything around them is changing, they don’t have the money, or the time, to........

© Entrepreneur

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