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Choosing the right channel and contract structures for non-employee workers
In this article, we classify extended workforce engagements into four distinct categories, explain when to use each, and identify key operating principles to apply when using each category. We have the benefit of drawing on decades of work with companies and new Brightfield data and tools that allow us to optimize across all categories of nonemployee workers, including an ability to analyze thousands of a company’s SOW contracts to identify millions of dollars in potential savings. In short, we present some thoughts on the best way to answer these questions:
- Should I use a consulting company under a Statement of Work (SOW) contract or use a staffing company?
- When is paying by a Time & Materials contract the right option?
- Is this engagement best structured as an ongoing service contract or as a deliverable-based contract?