My Bluebean

Pros And Cons Of Contract Work

All organisations will use contractors at some stage. Some companies to a greater degree than others and some companies with better success than others. During implementation or when dealing with emerging technologies you are almost certain to need outside resources. 

Companies that treat their contractors well, as if they were permanent employees, get much better results. Organisations that look at contractors as a necessary evil and treat them as such, will often not get the commitment they require and contractors will leave at the first opportunity. 

This can impact massively on the success of a project. Replacing contractors like for like is an unnecessary drain. Most contractors are not just in contracting for the money, like everyone else they get job satisfaction from achieving results and want to feel they are making a contribution. 

Use contractors to supplement your core workforce. Make sure you are getting all the advantages possible from having an expert on your team. It is our job to assist you in achieving your goals. Only in this way can we achieve our goal of building lasting partnerships. First Point will be happy to discuss strategies that can maximise these valuable resources. 

Advantages 

• Flexibility. To hire and fire according to the peaks and troughs of work schedules, while keeping your permanent workforce stable.
• Cost savings. Although a contractor will cost more on a pure per hour basis, they are less expensive for short to mid-term projects when taking into account the full compensation package and training. Unfortunately the world of jobs for life has changed.
• Exact matches. Gives you the exact right skills ready to hit the ground running.
• Training. Not only can contractors be used to complete specific projects, on-the-job training can be given to your permanent staff working alongside them.
• A quick fix. It is often possible to hire a contractor at short notice to fire fight problems. Permanent employees normally take longer to go through the internal HR process.
• No headcount. Contractors help you keep permanent headcount down whilst still meeting project deadlines.

Disadvantages 

• Budget constraints. On a purely per hour basis contractors cost more.
• Loss of key skills. A contractor can leave mid-project or not extend his contract. You may have come to rely on the contractor heavily, as an expert in his field. Obviously this can happen with permanent resources but it is more likely with contractors.
• Reliance on contractors. An organisation can become too reliant on contractors, not investing enough in the core workforce.
• Continuity. A permanent resource can give better continuity to your clients, although a contractor can bring a level of competence and experience that permanent staff may not have.