Some employers may see contracting as a temporary solution until they can find a permanent hire for a position – someone to bridge a gap or cope with short term growth. However, there are many advantages to working with long-term contractors that may surprise you. Let’s explore some of the advantages to companies of every size.
Cost saving solutions
Outsourcing for a contractor may be a cost-effective way to gain resources for project-driven goals and increased growth. Contractors do not require the benefits that a permanent employee typically gets:
- Holiday, overtime or sick pay
- Insurance
- Tax, pension and bonus
Hiring a long-term contractor may be more cost effective than you think. Consider the following comparisons for a UK based contractor:
| Contractor | Permanent Hire | |||
| Rate | £400 (day) | £60,000 pa | £80,000 pa | £100,000 pa |
| Hiring, Onboarding, Training | £0 | £9,000 | £12,000 | £15,000 |
| National Insurance | £0 | £8,250 | £11,040 | £13,800 |
| Pension (5%) | £0 | £3,000 | £4,000 | £5,000 |
| Bonus (10%) | £0 | £6,000 | £8,000 | £10,000 |
| Annual Cost | £88,000 | £86,250 | £115,040 | £143,800 |
New skills and insight
Businesses are constantly evolving, and the current workforce may not have the necessary skills to meet the business needs of tomorrow. Contractors can breathe new life into a project and bring new skills and insight. They can be brought on at short notice and vitally, they can upskill current employees in the latest tech, ensuring your team are fit for purpose for the longer term.
Contractors have the benefit of having been exposed to multiple companies across various industries and can see what has worked in each of them, and typically what hasn’t. Therefore, hiring a contractor with previous industry experience has the added bonus of bringing a specific insight into the industry with broad expertise and possibly offer solutions and diverse thinking that wouldn’t otherwise come about without internal bias.
Flexibility
As mentioned before, contractors can be brought in at very short notice (immediate in some cases), and they can work flexible hours/days. Companies also benefit from having the contractors on a flexible notice period which is reciprocal in all contracts, which protects both the contractor and the company. This model of supplementing permanent teams with niche contractors is a vital part of a growing and changing business, allowing teams to scale up and down at short notice.
Quick fix for absence
Permanent employees can become absent for long periods for many different reasons, including maternity leave, illness, or even sabbaticals. Naturally, projects can suffer from the skill shortage if not addressed properly. This can have an impact on productivity and motivation if the increased workload falls to other team members. Contractors can be brought in as a flexible solution to fill a gap and keep a project on track, ensuring no permanent members of staff are saddled with extra work. When the permanent member returns to work, you can simply finish up the contract (abiding by the notice period) by doing a handover and ensuring the employee is up fully up to speed.
Getting a project finished
You may be nearing the end of a project, but you need some added expertise to get the finishing touches applied and ensure that it’s the best it can be, or possibly to hit a specific deadline. Bring in a contractor who has specific skills, knowledge, and experience to get it over the line, on time and within budget.
Temporary fulfilment for a permanent position
As mentioned previously, companies use contractors as a temporary filler for a vacant role or a tester for a new position. Finding the right person for a role can take time and you don’t want to rush it. A contractor is a highly skilled alternative who can maintain the quality of work in the interim.
If you are planning a new role but aren’t 100% sure of how it will work out, you can hire a contractor to carry out the role in a try before you buy scenario. In this case, you can hire the contractor for a set period, then if both parties are keen to engage for the long term, secure the contractor on a permanent basis. The benefits are, you know them, their skills, reliability, and delivery; and they in turn know you as an employer that they want to work with long term.
Realtime Solutions
At Realtime we have a dedicated contractor process and have access to some of the most experienced IT professionals on the Island of Ireland. We have invested extensively in the latest technologies to make the recruitment process as easy as possible, including Codility for pre-screening and technical skill testing, and RealView, our bespoke video interview platform, both saving huge amounts of time to hire.
If you think a contractor is what you need to give your company an edge, please get in touch, we will be happy to talk you through the process.
