Over the past couple of years, we’ve seen the emergence of ride-sharing apps, an obsession with scooter hoverboards, and, most recently, a resurgence of Pokémon fans. (Still don’t really understand what this is all about? Same here). But those involved in recruiting & hiring have noticed another massive trend: the rising demand of contingent workers. A new study conducted by Intuit suggests that by 2020, 40% of America’s workforce will be contract, temporary or self-employed workers. That’s more than 60 million people!
While hiring the right person for the job is the ultimate goal, employers are often faced with the task of deciding between a full-time employee and a contract employee. Here are four scenarios where hiring a contract worker may be the smarter choice for your company:
You don’t always have the need for a full-time employee. Your business may have a specific project or campaign that would benefit from a contractor coming in for a specified length of time. Their specialized skill sets are there to do a specific job that may only take 6 months. This need may occur when your team is developing a new program, starting a new project, or launching a new product. You may need help during the height of a project, but don’t have a need for an additional full -time, long-term employee.
A lot of employers will use a contract period as a test drive, rather than hire someone without knowing if it’s a good fit on both sides. In hiring a contractor, you have the chance to see how the contractor works within your team and office environment. If they exceed your expectations, you may decide that you’d like them to be part of the team, and offer than a full-time position. It’s a great “try before you buy” option where you have less of a chance of making a costly bad hire. According to a study conducted by Glassdoor and the Brandon Hall Group, fees for advertisements and recruiters, combined with the cost of technology and the interview process itself can range from nearly $750 for an entry level hire to almost $3,800 for an executive placement. Also, if you hire a contractor that ends up not being a great fit, it’s much easier to end their contract, rather than go through the termination process of a full-time employee.
If you need an SME (subject matter expert), whether it is for the development of a new software platform, the creation of a marketing campaign, or to manage a new program, bringing someone on as a consultant or contractor is the most cost effective way to get results. These experts will give your team the knowledge that they need to be successful, without the time or cost of training your current team or hiring a full-time employee. In cases where there is a knowledge void on your team, a SME will have the expertise to efficiently and accurately guide your team and project to success.
There are many reasons that you might need a resource only for a short time due to deadline constraints. Whether it is your busy consumer season, you have a product launch, or you are in the middle of an overhaul, you simply might just need a few extra hands on deck. Hiring a contractor, or a team of contractors, will allow you to get the work done in a quick and timely manner, while taking some of the stress off your full-time employees. Once the work is done and deadline is met, you are back to working with your original team.
At the end of the day, the process of sourcing and hiring a contract employee or a full-time employee can take a lot of time. Having the assistance of a staffing agency or an HR recruiting firm will take the pressure off of you. At Xtreme Consulting, we can help you find the right person, with the right skills, within your budget and time frame.