Now this is something I have not seen yet – loaning out your employees during slow periods. Inc.com provides the article:
How it works: On the StaffShare website the “seller” company lists the employee’s skills, daily rate, and availability. The cost is £50 (roughly $81.70) a year per candidate. The “buyer” company searches the database, uses the website’s message system to vet candidates and iron out details with the seller, and then a contract is sent electronically.
The background behind the idea:
“The companies had these redeployment pools of 1,000 people who needed to find other work within the company,” Flaxton says. “So we thought, ‘What if there was a service where they could find it at another company?'”
Conceptually, I think it is a tremendous idea. Logistically, I’m not sure how this approach would work for retention. Still, I believe there will be major transformations once we finally come out of this severe recession. Employees moving to a contract agreement seems to be a natural progression.
The movement of health insurance payments from the employer to the employee (inevitable based on rising costs) will remove one of the incentives of traditional employment agreements. A contractual (1099) agreement could become the more standard arrangement.