What is the Netflix Recruitment Model?
Just like your favorite TV-binging service, the Netflix Recruitment Model is on-demand recruiting. It’s all about getting the workers you need, when you need them, for however long you need them. Even if your business has the standard 9-5 workers, you may need to re-think that model soon; Over 40% of employees in the United States are now contingent workers, and that number is expected to keep climbing.
But before you decide whether on-demand work is as appealing as its’ television counterpart, there are some important factors to consider. Contingent work comes with a lot of benefits, but there can be hidden risks. Take a look:
Specific Skill Sets
Flexibility: In the current fluctuating and fragile economy, companies need to be able to expand and contract when necessary. This is where contingent work is truly appealing. When recessions hit, companies can make cuts without having to worry about severance packages. When business is booming, contingent workers can be hired faster and easier than their full-time counterparts. Moreover, current technology makes it easier than ever for employees and employers to connect for temporary hiring.
Cost Savings: Unlike full-time staff, contingent workers do not need to be paid for sick days, holidays, or vacation time. They are paid for the work they complete, and no more. If there’s no more work to be done, the business and the contingent worker amicably part ways; There’s no commitment for a business to keep the worker on longer than necessary.
Specific Skill Sets: For businesses in quickly-evolving industries like IT and Energy, contingent workers may be ideal. As things change and skill sets become more specific, it becomes harder to fill and keep constant positions. With contingent work, your workers can change as quickly as the industry changes. The level of productivity can remain high; In a recent study, 97% of employers who used independent contractors reported they were satisfied with their performance.
Lack of Loyalty
Misclassification: There is a high risk of misclassification with temporary workers. If a full-time worker is misclassified as contingent or vice versa, it could cause significant problems with taxes and fines. Additionally, any worker who believes that have been misclassified—accidental or not—can file a lawsuit to get whatever benefits or payments they feel they are entitled to. Fortunately, there is an easy way to avoid misclassification: using a third-party staffing agency. It will cost more, but it may well be worth it.
Hiring Difficulty: As we said above, hiring contingent workers gives you the ability to change with the industry. However, that doesn’t always mean you’re going to find those workers immediately. Only 43% of workers are hired within the first 30 days of a position becoming available. In addition, those workers with the right skill set may not necessarily fit in with company culture. Depending on the length of the project, the wrong worker could have serious effects on morale.
Lack of Loyalty: Contingent work can be a double-edged sword. Yes, you can hire and fire workers whenever necessary, but that means contingent workers are inclined to be less attached. They may leave before a project is complete, leaving you floundering to fill their position again. However, a good way to combat this issue is to ensure hires do fit in with company culture. Even if they aren’t destined to stay forever, contingent workers will feel more attached to co-workers they mesh well with.
So is it right for you?
In short: Maybe. However, as the percentage of contingent workers continues to rise, you may have less of choice. Fortunately, businesses like PeopleTicker ensure you’re paying the right workers the right rate if and when the time to switch to contingent work does arrive.
Start your Netflix recruitment process off on the right foot by creating the most competitive compensation plan. Get your guide below: