While the job market is heating up, prospective employees are sure to notice a few differences when compared to the past. Most notably, employers are adding more contract or temporary workers as opposed to full-time employees with benefits.

According to a recent CNNMoney.com article Say goodbye to full-time jobs with benefits, the government estimates that 40+% of the workforce will be comprised of contingent workers within the next 10 years, up from 31% as estimated in 2005. In Need a Job? Contract work could be the new normal, MSNBC cites “Monster.com saw a 46.2% spike in contract job postings in March compared to the same month last year.”

What is driving this change? Much of it is due to the desire of most companies to lower costs. By not having to pay benefits, employers are able to save thousands of dollars per year.

Demographic factors are also at play. Baby boomers are on their way out, while younger workers are joining the workforce in large numbers. Recent trends show that the younger generation is more open to contract positions because it means they don’t have to be connected to a single company.

Joe Salvucci, President of PEAK Technical Staffing USA, feels that the shift to hiring more contractors and fewer full-time workers is here to stay. “While there will always be a need for traditional workers, contract work is becoming more and more popular,” he said. “For one thing, employers need the flexibility to staff up and down as project cycles rise and fall.  For another, many aspects of staffing, such as higher hourly rates, ability to travel and flexibility to cherry-pick projects, are more attractive to the younger workforce.”

 

Many companies help pay the cost of relocation when hiring an out-of-area employee. While this is company policy in some cases, the expense must still be considered. With the cost of relocation higher than ever before, most organizations are being careful about the decisions they make.

According to a study from CareerBuilder.com, conducted by Harris Interactive, approximately 33% of employers have paid for relocation costs in the past two years. Of those interviewed, 40% said they would pay at least $1,000, 33% said they would pay $2,500, and approximately 10% would spend $10,000 or more.

 

In some cases, the hiring company will cap the amount that they give an employee who is relocating. The problem with this is obvious: it may not be enough money to make the move worthwhile.

 

On the other hand, if there is no cap, expenses can quickly spiral out of control. The cost of relocation can include, but is not limited to, travel and lodging, food, expenses for moving household items, and temporary housing.  

 

When the cost of living increases, so does the cost of relocation. In turn, companies need to adjust how much assistance they are offering.

 

With the cost of relocation increasing, a larger number of companies are looking for qualified talent closer to the location of the jobs, or engaging more contractors. Contractors don’t require relocation, and expect to move from location to location as needed. And they can do so for the price of a plane ticket.