Three Major Reasons Your Company Should Be Hiring Fractional Executive Talent
Is “Contingent” Part of Your Company’s Vocabulary?
For years now, Canada has seen a steady increase in self-employment – namely that of executive-level workers.
According to an article by Financial Post, Intuit Canada says that by the year 2020, 45% of the Canadian workforce will be made up of freelancers, independent contractors and on-demand employees. Flexible work environments, challenging assignments, telecommuting, and the ability to earn more than a traditional employee has added even more fuel to this labour market evolution.
Naturally, more and more top performers are saying “no” to the traditional employment agreement and “yes” to the new world of gig work. That being said, this overall reduction in the availability of top talent for full-time positions makes finding the perfect full-time employee increasingly challenging! It isn’t uncommon now to hear that an executive or leadership position is vacant for 6 months or more – in fact, according to a recent study, there are almost 400,000 vacant jobs in Canada; including 13,000 executive positions.
To solve this supply challenge, many businesses are beginning to realize the prolific benefits of hiring contingent or part-time executives.
Is your company ready to join the gig movement? Here are our top three reasons to start now:
1. The financial savings are substantial.
One of the biggest challenges when starting up a new company, division or trying a turnaround strategy is securing enough capital to attract the right talent. The last thing you can afford is hiring the wrong person without the skills and experience you need.
In an example provided by an article on Forbes.com; a company employing a full-time CFO can expect to pay $200,000 per year plus 20% more for employee benefits and payroll taxes - which can become very expensive for a company under financial stress. However, by engaging the gig economy a company can retain 100% of the creativity and brain power of this CFO by employing them for one day a week – we’re talking $40,000/yr; resulting in a whopping 80% savings.
An additional financial benefit of the gig (part-time) executive is the ability to rightsize quickly and effectively. Caroline Cole Power; managing director of Canadian HR Solutions (a Toronto-based management consultancy firm), sees a trend of more organizations become comfortable with letting staff go under the circumstance that there isn’t enough relevant work available.
Unlike the difficult and costly termination legislations that employers must address during a typical employment agreement, under the gig arrangement; this amount is agreed upon up front (and is usually a fraction of the cost compared to full-time agreements). he gig (part-time) executive can ultimately save your business thousands of dollars - as well as increase your team's ability to exceed expectations.
2. A happier, more productive workforce.
Engagement in the workplace is far more important for company success than one might believe. Studies conducted by the Queens School of Business and the Gallup Organization found that “disengaged workers had 37% higher absenteeism, 49% more accidents, and 60% more errors and defects”. They also found that in companies with low employee engagement scores, there was “18% lower productivity, 16% lower profitability, 37% lower job growth, and 65% lower share price over time”. Low engagement in the workplace isn’t anything to gamble with – and neither is a lack of flexibility – two qualities that the gig working model, fortunately, does not struggle with.
Truly; there is no working relationship that provides as much flexibility for executives than part-time arrangements. In a recent survey conducted by the Society for Human Resource Management (Leveraging Workplace Flexibility for Engagement and Productivity); “91 percent of HR professionals agreed that flexible work arrangements positively influence employee engagement, job satisfaction and retention.” So an executive who has control over his or her hours working 1-2 days a week is far more likely to be engaged and productive during those work hours than one bound to a 5-day work week with limited flexibility. We’d say that’s something to strongly consider.
3. You’ll get the precise skills and level of competence your business needs.
In today’s highly volatile business climate, companies depend on leaders with strong sales backgrounds and specific skill sets to stay on top. According to an article from AEIdeas, nearly 9 out of every 10 Fortune 500 companies in 1955 are gone, merged or contracted – a presumed reason being creative destruction due to a new and vibrant consumer-focused market economy.
In many industries, outpacing your competitors in today’s economic world requires an aggressive and sales-oriented leader. Today, this problem is addressed when companies find their highly qualified, sales-forward (and engaged) leader through online part-time recruitment.
Caroline Cole Power of Canadian HR Solutions states that “the duration of employment relationships has shifted from long-term to useful term”. It’s that very logic that quality and precision are much more valuable to a company’s success than quantity and duration of hours worked that continues to push the gig economy forward.
Today, when you seek out executive employees for part-time work, you’ll find that there’s a surprising abundance of highly experienced professionals at your fingertips. Using an executive platform like Kahuso grants you access to a large pool of top-tier candidates with the precise experience and skills you’re looking for.
Moreover, there are still a number of other reasons why hiring part-time in today’s economic climate is smart for business – such as the opportunity to build a more demographically diverse team, extending your company’s operating hours to improve customer experience, and very importantly – avoiding all the risks associated with hiring on your own such as choosing under-qualified candidates or facing legality issues.
Get the talent you need, when you need it, for as long as you need it… these are the true benefits of going gig!
Ready to Take on Part-time Professionals?
- Financial Post: Intuit says 45% of Canadians will be self-employed by 2020, releases a new app to help with finances
- The Globe and Mail.com: Interim executive work on the rise as managers seek freedom and flexibility
- Forbes: Consider Sharing Part-Time Executives Between Startups--The Same Brain At 20% Cost
- Harvard Business Review: Proof That Positive Work Cultures Are More Productive
- SHRM Foundation: Leveraging Workplace Flexibility for Engagement and Productivity
- AEIdeas: Fortune 500 firms 1955 v. 2017: Only 60 remain, thanks to the creative destruction that fuels economic prosperity