In today’s unpredictable economy, organizations of all sizes constantly reassess their staffing models to enhance efficiency and manage costs. A common strategy that arises is the need to cut contingent staffing—such as temporary consultants, contractors, and specialized experts—in favor of hiring permanent, full-time employees. While this may seem like a way to save costs, it carries significant risks that can negatively affect the quality, flexibility, and overall success of both short-term and long-term initiatives.
While it is reasonable to eliminate partners who are not delivering value or are not invested in your organization’s success, cutting all contingent staff can be detrimental. Here’s why this approach may do more harm than good:
1. **Loss of Specialized Expertise**
Healthcare consulting and temporary staffing often require niche expertise in areas such as care management, claims processing, information technology, and regulatory compliance. Partnering with firms like Impresiv Health brings a wealth of specialized knowledge that may not exist within your full-time team. Avoiding the use of external partners can create gaps in skills and experience, ultimately posing risks to your business.
2. **Higher Employment and Recruitment Costs**
While organizations may initially perceive savings by cutting contingent workers, they often overlook that a suitable partner, like Impresiv Health, can provide temporary resources at a lower per-hour cost after accounting for all benefits associated with full-time employees. Hidden costs such as higher overtime pay for permanent staff, expensive last-minute recruitment, and increased reliance on existing staff juggling multiple projects can also inflate expenses. A balanced workforce strategy that includes contingent staffing can help mitigate these unforeseen costs.
3. **Increased Burnout Among Full-Time Staff**
Choosing not to use contingent partners for short-term projects or temporary needs often results in existing employees taking on more responsibilities. In the healthcare sector, where projects typically have tight deadlines and high stakes, this can lead to increased stress, burnout, and ultimately higher turnover rates. Overworked employees tend to be less effective, so supplementing your workforce with specialized resources can be a cost-effective strategy, as long as they meet expectations and deliver results.
4. **Difficulty Meeting Project Goals and Expectations**
Regulatory bodies such as CMS, NCQA, and URAC often compel managed care organizations to make changes to their staff, processes, technology, and reporting. Sometimes, the expertise of healthcare consulting firms is essential for providing tailored solutions. Without an appropriate mix of talent due to cuts in contingent staffing, organizations may struggle to meet project expectations and regulatory requirements. This can result in project delays, lower member satisfaction, and lost revenue opportunities.
5. **Challenges in Managing Short-Term or Specialized Projects**
Certain enterprise technology projects require expertise for a limited duration—such as implementing a new care management system or preparing for a regulatory audit. Hiring full-time employees for these specific projects may not be practical or cost-effective. Contingent workers offer a strategic advantage by enabling firms to bring in the right expertise for a defined period.
Reducing contingent staffing without a strategic plan can lead to operational inefficiencies, financial burdens, and compromised patient care. Instead, healthcare organizations should adopt a data-driven, flexible approach to workforce management—one that prioritizes both cost control and high-quality patient outcomes. Several organizations, including ours, specialize in healthcare services and technology, boasting a reputation for delivering significant value and a competitive advantage to our clients.
