Permanent vs Contracting employees: What is best for your business?

As a business owner, it's important that you have quality employees to help your company run successfully and grow. But finding the right employees can be challenging and more difficult than you think.

In today's working culture, employers have options. Do you want to hire someone on a full-time basis or do you prefer getting someone on contract? Whether you choose to hire a full-time employee or a contractor, remember, it all comes down to finding the right people who fit your organization.

If you have a position open in your business, what's the best way to fill it? In this article, we will look at the difference between full-time employees and contractors and the advantages for both. So, before you start looking for your next hire, we offer some considerations to help you make your final decision.

Choosing to hire contractors
Companies all around the world are looking for ways to cut costs. And getting someone in on a contract basis seems to be one of the ways. But first things first, before you start looking to hire someone, you should be clear on what services you need to be provided. Draw up a job description to help you as a reference point when you have to draft their contract. It needs to include very specific tasks, from their job assignments up to the hours they will need to work and the results you expect them to deliver.

They come with specialized skill (s)
If you're working with a range of clients, working with skilled contractors can be your secret weapon to fill specialized skills gaps. Most contractors bring specialized expertise to the job and that means that they can generally be more productive. 

Cost you less
Some may argue that contractors get paid more per hour than a permanent employee, but in actual fact, you are saving money in the long term. It actually cost the employer more money to hire someone on a full-time basis. That doesn't necessarily mean that you won't spend any money on getting someone in on a contract basis, but you will spend much less on operational costs.
By using contractors, you can expand and contract your workforce as needed, without taking on unnecessary expenses.

Flexibility on projects
Contractors provide a great deal of flexibility to the organization and can be used at the convenience of the company.
Working with contractors allows employers more freedom in hiring and letting go of workers, which can be advantageous for employers with changing workloads. You can hire a contractor for a specific project and dictate their working hours, knowing that the worker will be gone when the job is finished.

Taking the permanent route
You need permanent employees to do daily operational tasks, so it is necessary having someone on staff whose only duty is to carry out those daily tasks. Full-time employees are available in the office when you need them and are often more than willing to take on multiple roles when necessary.

Commitment
Permanent staff may be better at working in a team because they know the company and other employees better. An employee is likely to feel more able to do their job effectively if they know they have a measure of job security, long-term prospects, and the opportunity to build relationships with other staff. When hiring someone on a full-time basis, you provide them with security. Most employees will stay loyal to the company because of that.

Taking on multiple roles
Permanent staff will be more invested in the company because you provide them with various opportunities which will allow them to wear multiple hats and achieve personal development goals. And because you are growing their skills, you are also growing the company.

Do your projects and tasks require someone to dedicate 40 hours per week, or can your projects be completed on a more independent basis? Determine what's best for your company to ensure you hire the right kind of talent.

Whether you require permanent or contracting staff, we can help you with the hiring process.

Communicate Recruitment offers more than just permanent placements. We can also assist you with your contracting needs.

If you require staff across all levels of the Finance, IT, Engineering Supply Chain, and Freight industries contact us today for your talent search. 

We are a reputable recruitment agency with consultants specializing in finding Finance jobs, IT jobs, Engineering jobs, Freight jobs, and Supply Chain jobs. Check out our vacancy page and apply now!