Hiring Contract vs Perm in times like these.
Everything has been at a standstill for the last 4 weeks BUT we can see some positivity with what looks like a move down to Level 3 which means that we are closer to Level 2. Our clients have fed back to us that this creates a more favourable environment to review and change team structures and talent pools to suit business needs post COVID-19 … but everything prior to the 25th of March is now different, who would have thought as we were ringing in the new decade come March we would all be staying home to save lives. So, what does this mean in terms of hiring? and what is best for your team in the short to long term? Here we explore the benefits of hiring Contractors vs Permanent staff.
So do you hire employees for stability, or do you choose to hire for flexibility and to fulfill special projects or a combination of both contractors and permanent staff?
Hiring the right culture fit: There are a lot of people worldwide who are feeling uneasy about their current career paths and jobs. It is now vital to impact your team in a positive way and that includes making the right hires that are going to boost morale, get along with the current team and bring a new set of ideas and outlooks into the business. You do not want someone that is going to ruffle feathers. Hiring a contractor is a great way to assess potential culture fit, along with the skills they bring to the table.
Flexibility: Have you identified a skill gap in your team during this lockdown period and is it vital that it is filled now? Is there still an FTE business case for your need post this event? Hiring a contractor is a perfect opportunity to complete projects and fill the gaps. Business managers get the chance to assess the market and the business while still completing the task at hand. If the market continues to have a downturn or you go through a quiet patch you can utilise the flexibility and only outsource what is needed.
It can be cost-effective in the long run: Even if you end paying slightly more for a contractor you are more likely to save money by only paying during the project time. There are various examples on how to approach this i.e. Temporary Contract; Fixed Term Contract or Statement of Work to align to your budget for specific projects.
Speed to market: A lot of companies are struggling to hire employees in fast-growing, skill shortage fields, like the risk and compliance market. In this field, it is quicker to hire and onboard a contractor than a permanent employee. Chances are once a contractor has been given a project they are experienced and will generally be able to get on with it without too much further direction and onboarding. Career contractors or experienced personnel have transferable skills and systems knowledge resulting in, hopefully, a stress-free induction period.
Permanent hire advantages:
Stability and Commitment: Stability is important for good team dynamics. It’s much easier to create loyalty when people are brought into the success of the business and not seeing people come and go, which could become a big distraction. This also breeds commitment from employees and allows them to take ownership of their work and become ambassadors for their company, both inside and outside of office doors.
Investing for the future: Keeping your staff in house makes it easier to manage them, workloads and keep information secure. You will want to make sure you have staff you trust to develop the business with you but equally, staff that want to develop their own careers. Investing in training and development is vital to guarantee a better response to changes in the market, which ensures company success in the long term.
Succession planning: Having permanent staff on board ensures that you have the right people with the right skills, capabilities, and experiences, in the right place at the right time. Succession planning is valuable to any organisation looking to avoid the disruption that comes from vacancies.
You are a well-oiled machine: As you build trust and invest in your staff the business will automatically start ticking over and run smoothly and effectively. This is vital to get your business through rough periods of uncertainty and you need a team you can trust to support you as well! It will also promote job satisfaction. Highly engaged employees are more productive and have better retention rates than their peers, making them extremely valuable assets.
At the end of the day, the decision is yours, contractors can help through periods of growth or difficulty and they add value in different ways. They can be the short term fix you need in times like this and offer a relief from the important work that is piling up. Investing in permanent employees creates stability, loyalty and trust. Is deep-diving into hiring permanent staff better to beat the economic downturn and come out fighting in the long term?
Tyler Wren has been building their talent pools during the lockdown period and is working with a number of highly talented compliance and risk specialists, both in the contract and permanent space. So, what does this mean in terms of hiring? What is best for your team in the short to long term? Get in touch with me today to hear your options – 09 930 9828 or firstname.lastname@example.org