There’s no doubt that the use of contract labor has been on the upswing –many companies continue to hire contract workers for three important reasons:
- Contractors save your company time,
- Contractors save your company money,
- And contractors create more staffing flexibility.
These benefits hold true in all different types of industries, and in markets across the nation. Let’s look a bit more closely at how contractors can provide these benefits to your company.
Managers can usually get three weeks of productive work sooner when going through the right staffing firm (compared to direct hiring). When working with the right IT staffing firm, the median time to fill a position is eight days, versus 52 days for companies that make a direct hire. In fact, smaller staffing firms specializing in a specific skill set excel at getting the right talent in place faster.
In the world of IT, many companies have projects that can last from 12 to 18 months. With tight project deadlines, companies need to have a fully staffed IT department in order to deliver projects on time. That means finding the right talent and finding it quickly is key.
This is where the right staffing firm can come into play.
As the U.S. job market grows and unemployment shrinks, it is becoming more difficult to find and recruit the right candidate using traditional hiring methods.
Top that with a higher than average cost of living in many areas, and add in the fringe benefit costs associated with a full-time employee (taxes, insurance, paid vacation, sick leave, 401K match, profit sharing, etc.), and you have another 20 to 40% on top of base salary.
By hiring a contract worker, you are getting the equivalent talent of a direct hire without the added costs of a full-time employee.
Creating Staffing Flexibility
By hiring contract workers, companies can ensure they are consistently ahead of the curve when it comes to talent. Bad hires can cost a company anywhere from 10 to 20 times their base pay. Putting this in a dollar format, a bad hire for a mid-level position could result in a half million-dollar mistake for your company. By hiring a contract worker, you can be sure that the candidate is a fit for the position without a long-term commitment. In some cases, you can hire the contract employee (contract-to-hire) after a period of time, which definitely ensures you are getting the right employee for your company.
Additionally, if you work with a contractor who doesn’t turn out to be a fit with your company’s culture and goals, you simply end their assignment. When you’re hiring something like IT talent, a targeted skill set is often critical to the success of your project. With a contract worker, you can hire the right person with the exact skillset you need for the specific task or project at hand, preventing you from having to incur the costs of training a full-time employee.
Overall, there are true benefits to hiring contract work for project needs. We invite you to contact us for more information on how we can help you.