Industry Insights

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Benefits of Contract Staffing: Candidates and Clients

June 20, 2022

This blog is contributed by Burtch Works’ Contract Staffing Recruiting team.In the event of a talent shortage, a business may resort to hiring contract workers to build its team. What are the benefits of hiring professionals on contract? Why should you consider a contract position? These roles typically ask for a candidate with highly specialized expertise to assist or solve a problem in an area that is lacking otherwise with current permanent employees. Hiring contract workers prevents an extra load on permanent employees and allows for individualized dedication to accomplishing the purpose of the position.

New Skill Sets and Experience:

Each contract role may require a new skill or to build upon a current skill. This type of job provides exposure to unknown situations that need a creative solution. Contract roles are available in a variety of industries, creating the opportunity to obtain more knowledge and information about different fields that otherwise wouldn’t be a possibility in permanent employment. Shifting fields can be done when starting a new contract, allowing the ability to have a change of position and/or field of work often without raising red flags like it would if switching permanent roles often.

Specialization and Learning Opportunity:

Hiring a professional on contract provides the ability to bring in specialization and expertise, allowing the opportunity to expand a team’s knowledge in an area they otherwise wouldn’t have exposure to. Bringing in an outside perspective can generate creative and new ideas and solutions, which can then be utilized long-term, even after the conclusion of the contract position. When searching for candidates, utilizing a staffing agency will open the role to a larger talent pool of an already qualified roster of individuals.

A Difference in Commitment:

Permanent employment implies staying with the company in a role for the foreseeable future. Contract staffing can occasionally be a ‘try before you buy’ circumstance. If it is a good fit on both sides, there may be an ability to convert a contract position to a permanent employee (but not guaranteed) in what is known as a “contract-to-hire” agreement. Contract roles also tend to allow for more flexibility. The required hours are decided ahead of the contract, and it is uncommon to exceed 40 working hours in a week. If overtime is worked, the contractor is entitled to overtime pay for those hours. For further flexibility, without the need for year-round responsibility, the contract worker decides when to take (or not to take) a position. This allows for the possibility of breaks, which can range from weeks to months, between contracts if desired. These breaks can be necessary for individuals as contract work typically includes no paid time off. Since many of the benefits permanent employees enjoy are not required for contract workers (i.e. employee paid holidays), there is less of a financial liability when adding contract staff to your team.

Streamlined interview process:

The interview process while filling a contract role is typically in a much shorter time frame with fewer rounds, a positive for both parties. Since the engagements are for a shorter period and a specific task/project, it is easier to identify what the requirements are for a candidate to be qualified and a good fit. Given the shorter time commitment, there is typically more emphasis on skill set and technical ability versus cultural fit in a contract candidate compared to a permanent employee. In addition, much of the time and resources spent interviewing, complying with ACA requirements, conducting background and drug tests, etc. can be handled by the recruiter, resulting in less of a workload for the client.

Compensation & Benefits

Contract staffing may not come with the same level of investment as permanent employees because rather than paying a year-round salary, they are compensated for their hourly time. The specified number of hours will be predetermined and can be budgeted appropriately. When compensating a contract professional, the hourly rate is generally higher than that of a permanent hire to account for the expertise, specialization, and absence of benefits. Given that contract roles typically do not require the employer to provide healthcare, 401K, etc., the higher hourly rate usually closes that gap.However, when landing a contract with Burtch Works, we provide benefits to our contractors by offering the same healthcare and 401K benefits that we provide our internal employees.If you or someone you know are looking to hire or seeking a contract role in Data Analytics & Science or Market Research, please contact Burtch Works here:Become a CandidateBecome a Client