One of the most effective measures that businesses can take is to use fractional hires. Fractional hires are part-time professionals who work remotely and offer their expertise on an as-needed basis. Here are the top 5 reasons why using fractional hires during an economic downturn can be beneficial for your business.

Cost-effective Solution

During an economic downturn, businesses need to be cost-effective in all aspects. Hiring a full-time employee can be expensive, considering the associated overhead costs, such as health insurance, retirement benefits, and taxes. Fractional hires, on the other hand, offer a cost-effective solution. By hiring a fractional hire, businesses can access the expertise they need without incurring the full-time costs. In fact, businesses can save up to 30% on labor costs by using fractional hires.

Flexible and Scalable Solution

Businesses may experience fluctuations in their workloads and project demands during an economic downturn. Fractional hires offer the flexibility and scalability to adapt to these changes. Fractional hires can be hired on a project-by-project basis, providing businesses with the necessary flexibility to scale up or down as needed. In fact, 65% of businesses surveyed reported that they use fractional hires to fill gaps in their workforce, demonstrating the flexibility of this approach.

Access to Top Talent

During an economic downturn, businesses may face a reduction in their workforce or a hiring freeze. This can limit a company's ability to access top talent. Fractional hires, however, can provide businesses with access to a vast pool of highly qualified and experienced professionals. Fractional hires are often seasoned professionals with years of experience in their respective fields. In fact, 69% of businesses surveyed reported that they use fractional hires to gain access to specialized talent and expertise.

Increased Productivity and Efficiency

Fractional hires are often highly specialized professionals who work remotely. As a result, they have more control over their work environment and can work more efficiently. By using fractional hires, businesses can tap into this productivity and efficiency, resulting in faster project completion and higher-quality results. In fact, studies show that remote workers can be up to 20% more productive than their in-office counterparts.

Reduced Risk

Hiring a full-time employee during an economic downturn can be risky, considering the uncertainty of the business climate. Fractional hires, on the other hand, offer reduced risk. Fractional hires work on a project-by-project basis, so businesses can reduce their risk exposure by hiring only when necessary. In fact, 48% of businesses surveyed reported that they use fractional hires to reduce their financial risk exposure.

Conclusion

In conclusion, using fractional hires during an economic downturn can provide businesses with the necessary cost-effective and flexible solutions they need to remain competitive and financially stable. By hiring fractional hires, businesses can access top talent, increase productivity and efficiency, and reduce risk. The benefits of using fractional hires are clear, and businesses that adopt this approach will have a significant advantage over their competitors. With the potential to save up to 30% on labor costs, businesses can effectively manage their workforce needs while remaining agile and flexible during times of economic uncertainty.

Sources:

1. Cost-effectiveness: According to a study by HR Dive, businesses can save up to 30% on labor costs by using fractional hires. (Source: https://www.hrdive.com/news/staffing-fractional-hiring-on-the-rise-during-covid-19/579507/)

2. Flexibility and scalability: A survey by Deloitte found that 65% of businesses use fractional hires to fill gaps in their workforce. (Source: https://www2.deloitte.com/us/en/insights/topics/talent/fractional-talent-solution-gig-economy.html)

3. Access to top talent: According to a report by Forbes, fractional hires are often seasoned professionals with years of experience in their respective fields. (Source: https://www.forbes.com/sites/abdullahimuhammed/2020/02/20/what-is-fractional-hiring-and-why-is-it-the-future-of-work/?sh=374f57e0194b)