Most people are familiar with the conventional employee-employer relationship, where a person is hired by a company in a long-term relationship at which an employee could spend their entire career.
First, they can spend the effort and expense to search, interview and hire new employees and then lay them off afterwards, assuming the qualified staff can be found. Or, second, they can call an employment company such as Continental and hire one of Continental’s technical employees to do the job.
In the second option, the company contracts Continental to provide Continental’s technical staff for the job. When the job is completed, the Continental contract technical staff returns to Continental for reassignment to another job. All contract technical staff benefits (medical, vacation, holidays, etc.) are paid by Continental, and there is no unemployment cost to the client company.