Benefits of Hiring Contract Employees
The cost of hiring and retaining a new employee has risen considerably over the past six years, as has the risk. However, there is more than one way to hire. Direct hire is often what comes to mind when thinking about hiring, but contracting and contract-to-hire are two other methods with increasing gains. Often, IT is one of the first positions to be outsourced in a pinched budget. As a result, your company can help leverage this need to your advantage by either contracting or using the contract-to-hire method.
Why should your business contract or contract-to-hire staff?
- It’s cost efficient. Contracting, especially for new employees, saves you a considerable amount of money through benefits. There are fewer payroll taxes, no education assistance, and no FICA/SS/Medicare taxes. This can easily cut 5-20 percent out of one’s total compensation, depending on the size of your company.
- It saves you overhead. In addition to paying fewer benefits, you will also have fewer human resource requirements, with fewer personnel needed to accomplish the same task. This saves a considerable amount of time which can be used more efficiently elsewhere, in addition to the aforementioned benefits.
- Flexible terms. You may not need a full-time employee as your DBA or security administrator. This is another area where having a contractor makes more sense. Paying for a full-time salaried person with benefits for a part-time job is not economically sensible, and part-time IT direct hires are few and far between.
- Easier to part ways. There are times when an associate is a bad fit. For these situations, a contractor is much easier to replace than a direct hire. There are fewer hoops, regulations, and red tape when letting a contractor go. Moreover, they are far easier to replace once there is a vacancy.
- Get to know them. Contract-to-hire positions are beneficial because they afford you the opportunity to try employees out while on the job. Interviews can sometimes be misleading (intentionally or unintentionally), while a contract-to-hire position allows both sides to ascertain if the job is a good fit.
Direct hiring is the most common method for hiring IT professionals, but it is certainly not the only way. There are several benefits for considering contract and contract-to-hire workers, while also possibly fitting your business model.
Whether your business prefers contract, contract-to-hire, or direct hire, we can help you. At CultureFit, we strive to deliver the most elite IT professionals in the industry, while fitting in perfectly with your company culture. Since our emphasis is balanced between culture and skill level, we can thoroughly screen and vet candidates to find the right employee for your company, so you won’t have to. Contact us today for a consultation to see how our process can help your business!