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In part one of this series, we discussed key reasons more contractors are leasing parts of their skilled trades workforce. These range from gaining project-specific expertise to quickly scaling their workforce in a more cost-efficient way. This article looks at some of the broader operational issues leasing can address, from cutting employment risks to the ability to act rapidly to urgent needs.  

Mitigation of Employment Risks. By leasing skilled labor, commercial construction companies can mitigate some of the risks associated with direct employment, such as turnover, worker’s compensation payments, and compliance with labor laws. Staffing agencies often assume portions of these responsibilities, transferring certain risks away from the construction company. Leasing also enables contractors to sidestep other HR complications, since the staffing agency is often responsible for managing workers.   

Adaptability to Market Conditions. Economic fluctuations and market uncertainties often roil the construction industry, which can affect hiring. Leasing skilled labor allows companies to adapt more easily to changing market conditions by adjusting their workforce without the complexities of hiring or laying off full-time employees. It can also accelerate a contractor’s ability to staff a new, shorter-term crew when and where needed, providing contractors more flexibility to meet market situations.   

Focus on Core Competencies. Construction companies can concentrate on their core competencies by outsourcing skilled labor needs, knowing this critical element of their success is in good hands. It allows them to allocate resources and leadership attention to sales, project management, quality control, and other critical aspects of construction, leaving the staffing and workforce management to the experts.  

Rapid Response to Urgent Needs. Construction projects may encounter unexpected challenges that require additional manpower on short notice. Staffing agencies can quickly provide skilled labor to address urgent needs, helping construction companies maintain project timelines, meet deadlines, or gear up for unexpected opportunities as they arise. 

To discuss temporary staffing and when leasing labor makes sense, call (737) 295-1024 or contact a Power Labor staffing expert through our site. 

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