There are more and more companies hiring contractors to fill their niche roles. Last month, we shared our top tips for contractors. Now, we’ve decided to look at contracting from the perspective of companies themselves. Check out the top 5 benefits of hiring a daily rate contractor.
In recent years, there has been a growing trend for companies to employ contractors, particularly for projects in the IT space.
A report published last year – State of Contract Work – from the job search marketplace ‘Hired’ found that, in the US, contract workers collectively earned US$1trn in the past year.
Contracting has become popular for every employer type, ranging from multinationals to SMEs and even start-ups. One of the reasons why it’s beneficial for companies to employ out contractors to work on specific projects is the specialised expertise then they can bring to a role. From speaking to companies on a daily basis, we at TalentHub know that the majority find it difficult to source permanent talent for niche IT roles.
For the employer, it can be about finding the right person who is capable of carrying out a project efficiently and within a defined timeframe. They might not have these skills in-house and do not want to spend both the time and money training existing employees. Instead, companies contract in an external person to work on the project, without having to hire them for the long term.
A contractor can supply niche skills that your company’s in-house team might not have. Rather than upskilling existing team members – especially if these skills are required for a short-term project – it can be more cost effective to hire a contractor to carry out the job.
Even though a company will probably have to pay a contractor more on a daily rate than they would pay an employee, it will be a more cost-effective option in the long term. With a contractor, a company will bypass having to hire a full-time employee and the hiring process, training and benefits associated with that. And because the contractor will not be on payroll, they won’t be eligible to receive any sick pay, holiday pay, pension benefits or health insurance.
Hiring a contractor to complete a project can make better financial sense if a company has fluctuating workloads. With a contractor, companies will know what they are paying for and will be confident that this person will get the job done within a fixed timeframe.
Contractors will bring their professional expertise to an organisation. There is no induction process or training required, so they can hit the ground running when starting a project.
With a cost, management spend a lot less time overseeing the work. If there is a problem with the project, the contractor is expected to have the knowledge and the tools of figure it out and fix it. This avoids the need for management to get involved and frees up a company to focus on its core activities and day-to-day running of the business.
Overall, it can be much more beneficial to hire a contractor. Once a project is finished, the contract between both the company and the contractor is also complete. This means that companies don’t have the additional administrative burden of having to lay people off or terminate contracts.
Author: Stephen Kilgallon
Stephen has recently relocated back to Ireland from Canada where he spent his time was spent working for the world’s 2nd largest recruitment company. Stephen has a proven track record in the building of technical and c-suite teams for globally recognised brands, SMEs and start-up organisations both locally and internationally