In today’s business environment, the use of professional and technical contract staffing has become a stratgic advantage for architects and engineers.
Below are more advantages of working with AEC Resources.
Reduce Employment Costs
- Reduce or eliminate technical training costs - training is provided by AEC Resources
- No Workers’ Compensation claims
- No Unemployment claims
- No employee benefit costs, such as medical insurance, life insurance, retirement, and pension plan contributions.
- No employee benefit administration
- No added expense for paid time off, such as holidays, vacations, sick time, and personal time
- No expense or administration associated with payroll withholdings and deductions to collect, pay, administer, and report
- Reduced risk of misclassifying an independent contractor (1099) or subjecting company to IRS and state audits
- No unnecessary overhead costs
- Match your staffing levels with your workload and project requirements
- Short contract staffing hiring cycle vs. long direct-placement hiring cycle
- Ramp up your staffing levels on demand or cut back on demand
- Easy to terminate contract staffing assignments
Try Before You Buy
- “Interview” the candidate on the job while he or she is an employee of AEC Resources
- Evaluate how the candidate fits your culture
- Assess the “real” skills of the prospective employee before making a direct hire commitment
- Acquire needed resources before direct placement budget is approved
- Reduce the risk of a bad hire
Someone Else Deals With The Problems
- Human Resources support
- AEC Resources handles all unemployment claims processing for its employees
- We handle any daily problem resolution (i.e., paperwork, benefits, paycheck questions)
- We have qualified Contract Administration, Accounting, and Human Resources professionals available to solve any problems that might arise
- Single point of vendor contact
At first glance, contractor fees might seem higher than the costs of employing additional staff members. However, many of the costs of employees are hidden. Some of these costs depend on the tax laws and may vary from state to state.
In the U.S., an employer has to pay an employment tax for each employee. Many employers also grant their employees (either voluntarily or by law) certain benefits, for example: paid holidays, sick pay, health insurance, pension, 401k, training, relocation, etc... AEC Resources provides these so the related expenses are saved.
First, do not overlook the cost of benefits that must be paid to regular employees- but not to contractors. Expenses such as training, medical/dental/life insurance, paid vacation, sick time, profit sharing, 401K matching, worker’s compensation, and several others depending on your company, all must be factored in to the analysis. One of the best reasons for utilizing contract help is that your company is not responsible for these benefits. Payroll and social security taxes also represent an expense for the company only in the case of adding staff, these expenses are not required for outside contractors.
Second, outside contractors provide a great deal of flexibility to the organization and can be used at the convenience of the company. This is especially helpful in situations when new projects are won, and teams need to be assembled quickly. When the project is complete there is no employee to fire (or unemployment paperwork to process). If more help is needed, one phone call brings in a new contractor. There is no lengthy (and costly) recruiting process. This flexibility can save the company a lot of money in personnel costs in the long run. Also, let’s say the person brought in to do the job simply isn’t performing to the expected level. If you’re dealing with a contractor, it is an easy fix. On the other hand, if you went through the process of adding staff to your organization, you have to follow the rules prescribed by human resources with regard to coaching, disciplining, documenting, and terminating employees. Sometimes it can actually be very difficult to fire someone. It is rarely as easy as sending a contractor home for good.
Affordable Care Act (ACA)
The Affordable Care Act is the most sweeping health care legislation in decades. Client companies should not have ACA liability for staffing firm employees because the staffing firm is the employer of record.
When deciding between outside help and internal staff increases, always keep in mind the hidden costs associated with the hiring and training of employees. These costs may be difficult to calculate precisely, but an estimate can give you the information needed to make a decision. Once the cost factor is determined, remember the intangibles like flexibility to the organization. This flexibility could be worth more than a small gap in cost; look beyond salary and hourly rates.