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Is it better to hire contract or full-time?
In today’s world, there are many different hiring practices. There are full-time workers, part-time workers, contract workers who freelance, contract-to-hire and so on. With contract hiring websites such as Jobble and Upwork, some positions can easily be filled seasonally or only when necessary.
On the other hand, hiring a full-time worker could be more impactful in the long-term for a company. With someone who has the skillset and the longevity for a given role, they grow in value as the company retains them.
So which is better – a contracted worker or a full-time hire? Let’s find out.
When to go with a contracted hire
The pros to having a contracted hire is that they are a very flexible option for companies who want someone to fill a position. They help budgets, allow for trial, can be productive and can offer novel ideas. Whether you need a time-based or project-based hire, it makes for a very attractive option.
Giving a worker a project or two to work on rather than having a full-time employee busy some of the time is typically a cheaper option for companies with small budgets. Even when it comes to termination, typically that is done on the behalf of the staffing agency.
Hiring a contracted worker will allow you to get a good feel for a worker before committing full time. You want to make sure that a worker has both the skills and motivation needed for the job. With a trial, you’ll be able to gauge a sense of good-fit or not.
This hire also allows for new ideas. Say your employees are stuck in a groupthink situation where that fresh perspective has been lackluster. An outside hire can be really helpful in any situation to get some new ideas coming through the workflow funnel. Helping move projects and tasks that are in standstill is what makes companies succeed after all.
When to go with a full-time hire
On the other hand, some believe that contract roles are killing upward mobility and there should be a balance complete with full-time workers. Full time employees are a fixed-cost and are compensated in accordance with their skills and experience level.
Does upward mobility matter to the job candidate? Does it matter to the employer?
After a worker has had some experience in a position, they do also become sort of an asset of value to the company. With previous experience, knowledge and a know-how for processes, this can be of great value to a company’s core mission. If you have contract hires who are working a project, but miss out on key details because they’re unaware – there’s missed opportunities.
The Key details
There are a lot of factors at play when it comes to a company’s onboarding process. It seems that in the 21st century, many are looking to cut unnecessary costs wherever they can, which has led to more contract hires than ever before. With the internet as a tool, it is easier than ever to get some extra hands on a project. Full-time hires still obviously happen, and can prove to be very beneficial – to both the employer and employee.
So when it comes down to it, it is a matter of budget size and what you best believe fits your companies hiring needs. Do you need someone in and out, or do you need someone to stick around and embed themselves within your company’s mission?