Hiring contractors has been a trend in recruiting for a while now and was mostly opted for consumer review based services in the beginning. Although, it wouldn’t be wrong to say that the practice of contracting employees has gained popularity among different sectors over the past decade. One of the most important sector that is predominantly employing contracted employees is the IT sector, wherein almost 60% of the talent works on contractual positions.
How is contracting different than freelancing?
Freelancing involves utilizing the skills of an individual for short term to complete a task leading to a big purpose. Think of it as freelancing a graphic designer or communication designer to design marketing collateral for a new product or brand extension of an existing business. While the marketing manager is implementing the strategies to enhance the outreach, the freelanced artist’s job entails just creating powerful messages that appeal to the audience, a short-term task leading to expanding consumer awareness.
Contracting on the other hand is for individuals whose skills are required for a comparatively longer period to achieve perpetual tasks leading to a specific goal. Companies bring in new skills required for a specific objective through contracted employees. Let’s put this in perspective from an IT firm stand point. Let’s assume that there is a requirement to build an application which requires knowledge of AI and the current fulltime employees lack the ability to contribute to the deployment of this particular requirement. In such cases, the company would bring in individual or a team of individuals who have relevant expertise and are comfortable working on the project for a specific period of time. By doing so, they not only find the right talent to engineer the goal but they also create an environment where their existing staff can be cross-trained working alongside these contractors who most probably have a vast range of experience from previous exposure in different industry types. Thus, contracting employees allows the companies to employ dexterity to accomplish an intent and an opportunity to upskill the existing work force. Another salient perk of hiring on contract is that it gives the management ample of time to test and decide if the contracted employee should be offered fulltime position in the organization. Hiring on a one year contract and having the option to extend it for another year or so is an added advantage to this.
When to consider hiring an independent contractor
When an organization embarks on a new project and is beginning to explore new technology or wants to implement brand extension proposition, a common impediment could be paucity of flair. It could cost the company a handsome amount of money and time to train their existing staff. Or it could take another route, which is much more appealing in such cases where they can hire an independent contractor who possess relevant skills applicable to the ongoing project without having to invest money and time in training.
Furthermore, the entire process of hiring a fulltime employee can be lumbering. Interviewing, onboarding, and documentation can take from weeks to months, whilst a temporary worker can frequently be expedited all the more rapidly.