The number of self-employed professionals in the UK has increased by 43%, and the overall contribution to the UK economy by freelancing professionals is around £119 billion (IT Contractors UK).
That’s proof that more and more companies are tapping into the gig economy in preference for full-time hires. But why? What are the benefits?
Let’s take a look.
The Case for Contractors
Typically smaller companies have always looked to short-term contract hires in addressing skill gaps or resource issues. While larger businesses have preferred permanent hires, choosing to focus on growing a sustainable workforce made up of permanent staff.
What’s surprising is the number of the behemoth companies that are now moving in the opposite direction. We’re seeing enterprises worth £200 million or over focusing more of their budgets on short-term hires.
There’s no doubt about it, the market is shifting dramatically. So why? The answer lies in the numerous, far-reaching benefits businesses set to gain from hiring contractors.
9 Perks of Hiring Contractors
1. It may be the difference between winning or losing a client or the success or failure of a game-changing internal project when specific skills are needed at short notice or on a per-project basis.
2. It gives you the flexibility to upscale or downscale your team in line with your business’ needs, for example, during particularly busy periods, new product launches or at times of expansion. Often the time and cost efficiencies outweigh the benefits of a permanent hire when the recruitment and onboarding process is swift.
3. You can bring in a bigger blend of expertise that might not be affordable on a permanent basis.
4. Senior hires become accessible and affordable. Businesses can bring in someone who is vastly experienced without needing a big budget giving them the foundations for growth. For example, you could hire a contract CMO to develop and lead strategy implementation while also building the internal team. Once the task is completed, they can hand the reins back to you.
5. It’s not just for big players: SMEs and smaller firms can factor in the cost of hiring senior contractors into client project fees or operational coststo make more productive use of a talent budget and deliver more value on that spend.
6. It allows you to pursue short-term opportunities that will help you achieve your long-term goals.
7. It gives you a safety net in the event of economic dips and blips. You can be bullish and change tack quickly by upscaling or downscaling your team as the business required. It also means you can continue to grow whilst retaining a cautious approach to recruitment. You don’t have to miss out on new business when an opportunity arises as you can hire a contractor to support you and minimise risk to the business.
8. You can avoid the need for difficult HR and talent decisions. For example, if you choose a contractor over a perm hire, you don’t have to go through the dismissal process when the perm employee is no longer required, freeing up resources and management time as well as minimising cultural stress.
9. It’s a great way to not only make a quick hire but to gauge whether you’d like to take the candidate on a full-time basis by witnessing their talent, expertise and impact on your business first-hand.
According to a recent survey, 46% of all new permanent hires are deemed failures by the 18-month mark. Imagine if you hired a new Marketing Director on £100,000 per year salary but learned they couldn’t cut it 18 months in. That’s a cost of £150,000 to the business, not to mention the costs of hiring, onboarding and equipping that person and then paying to do the same for their replacement.
Costs like this show why clients are taking advantage of the opportunity to see whether candidates can add real value and deliver against their objectives before making them a permanent member of staff. In fact, 67% of our temporary hires go on to take permanent positions with our clients.
As you can see, there are lots of ways businesses of all shapes and sizes can benefit from hiring contractors. But, as with any form of recruitment, it can be an uphill battle to find the right talent on your own. Especially when first-rate candidates are so sought-after.
This is where a recruiter can change your luck AND save you time and money.
Going Through a Recruiter: How Does it Work?
We have years of experience working with businesses to source, place and onboard seasoned contractors, from marketing directors and digital strategists to insight specialists and developers. We help our clients build a talented and flexible workforce so they can respond swiftly to rapid business change.
●Speed is a huge part of our service. If you need someone urgently with a particular skill set, we have the connections needed to find top talent fast. We’ve also nailed our internal processes to ensure placing and onboarding candidates is as seamless as possible.
●You don’t have to worry about the extra admin. We take care of everything.
●We like to get personal. We work in partnership with you to really understand your business and market. So we can help predict when you'll need access to specific talent and work with you to identify your business’ unique requirements.
●It doesn’t matter which industry you’re in. We have the tools in place to recruit a contractor from any sector.
●You gain a complimentary after-care service. We’ll speak to the contractor weekly, making sure they are happy and fulfilling their role. We’ll also check in with you to ensure your objectives are being continuously met and work with you to identify challenges and provide solutions.
Plus, you can erase all your recruitment responsibilities by investing in our premium service. We will become an extension of your business and cover all your contract recruitment needs.
For a friendly chat about our temp and contractor recruitment services, call our contractor specialists Nathan or Luke on 0161 359 3789 or pop us an email to firstname.lastname@example.org.