Why Hire A Contractor Instead Of A Full-Time Employee?
Half of the US workforce will be contractors (or ‘freelancers’) by 2020, a trend we can also track in the UK. Staggeringly, this means that half your current colleagues could no longer be permanent employees. That statistic may surprise you, shock you, or even worry you, but we are convinced that hiring contractors is good for business.
Previously, we at Blayze Group have been known to promote the benefits associated with contract work for the employee which include financial gain, flexibility and variety of workload. Yet hiring contractors is often seen as a short-term, last-option and even as ‘risky’ solution – so how has this remarkable change happened and what could this contract revolution mean for your business?
Using contractors brings a regular injection of new people into your business; it’s an incredibly healthy practice plus, when you hire contractors, regularly hiring new people doesn’t automatically equate to redundancies, as it does with permanent staff. Although there is strength in a business developing staff with wealth of company-specific knowledge over a series of years, new people bring in new ideas and have a fresh perspective on a company’s processes, especially when it comes to problem-solving. Also, new energy brought in by regular hires could reinvigorate permanent staff members. Likewise, working as a contractor is highly competitive which undermines any potential complacency that might set in, as with full-time employment; contractors have to be constantly upskilling to remain ahead of the best opportunities in the market. Forbes is convinced of this, saying that ‘technical expertise’ is a key pillar of becoming a successful freelancer, and this view is shared by contractors themselves. As more workers turn to freelancing, as forecasted, the industry will become more saturated leading to a more competitive environment; regular retraining and upskilling will become more imperative than ever before which is great news for both the contractor and the employer.
As well as bringing new skills into your business, hiring contractors means you have the luxury to hire these skills as and when you need them; in a nut shell, contractors allow businesses to meet short-term skill or capacity demands. When it comes to specific projects or the nuanced stages within them, sourcing the right individual for that one role without the pressure of looking one or three years down the line is a fantastic asset. With this comes an enormous saving on recruitment costs and time. On average, 118 people apply for every job; with a permanent hire, more time will be used up from the off, from salary negotiation to culture fit discussions to multiple interview rounds, than when making a short-term contract hire which is based on a quality-driven, vetted database provided by your chosen recruitment partner.
The vast financial benefits to hiring contractors doesn’t stop there; UK contractors contribute £21 billion of added value to the national economy. Although contractors do admittedly come at a higher cost per hour at work, financial savings arise in the other spends you would normally commit to a full-time employee but don’t for a contractor. For example, savings exist on holiday pay, tax, company pensions and even other overheads like desk space. Once these are taken out of the equation, it becomes evident that hiring contractors are a cost-effective solution for the employer too.
The right contractor can have an incredible, immediate impact on your business. In order to choose the right contractors, it’s prudent to have an experienced and transparent recruitment partner at your side to examine hires from a culture fit perspective, as well as for the relevant skills. Likewise, with new off-payroll rules coming into effect from April 2020, it’s more important than ever to have the right knowledge in your team.
Why Blayze Group?
As an expert and honest recruitment firm, we are the trusted partner of leading Property & Construction companies across the industry. We have vast experience in matching companies to their ideal contract working solution and make well-informed, consultative decisions based on knowing our client’s business inside out.
Get in touch today with our leading experts within the contract field, Naomi, Duncan or Dan. You can also browse our latest temporary job opportunities here.
Naomi Slakmon | Business Manager | Business Support | firstname.lastname@example.org | 0207 337 7512
Duncan Morgan | Associate Director | Residential Development | email@example.com | 0207 337 7545
Dan May | Principal Consultant | IT & Digital | firstname.lastname@example.org | 0207 337 7500
If you want more information on contract work or advice on turning towards contract work yourself, read our contracting guide here.