Why Use Contract Hiring In Tech

In today’s rapidly evolving tech landscape, there’s constant demand for skilled tech and IT professionals. One way to access this talent is through contract recruitment, wherein you hire someone short-term for a set period of time. But how can contracting benefit your business, and is it the right fit for you? We’re breaking down the positives and negatives so you can weigh up your next hire.

What are the benefits of contract recruitment?

Ultimate flexibility

One of the main advantages of hiring contractors is the flexibility it gives you, and this is especially valuable in tech and IT. Contracts can be tailored to suit specific projects, so you can scale your workforce depending on demand, and find people with the right skills for the task. Where a permanent role would leave you with a long-term commitment to that worker and their niche skillset, hiring a contractor means you’re not tied to that project indefinitely.

Access to specialized skills

Our tech is forever changing, and the next big tool, skill, or platform is always right around the corner. Hiring contract tech and IT workers means you can adopt these trends sooner, since you’re able to hire workers with these specialised skills.

Utilizing a more diverse talent pool in this way is one of the biggest benefits of hiring IT contractors, allowing you to become an early adopter of the next big IT trend without spending on training.

Lower risk

An ever-changing sector also means that technology, projects, or strategies can quickly become obsolete, or need to be adapted. Contract workers give businesses the flexibility to navigate uncertain timelines and changing tech landscapes, since they can be released without the legal obligations and complications that come from terminating a permanent employee.

Short-term cost savings

Permanent employees require a lot of funding - PAYE and national insurance contributions, paid sick leave, paid holiday, and pension contributions are all costs that aren’t required with a contractor. There’s also no need to provide ongoing training.

What are the drawbacks of contract recruitment?

Hiring contractors isn’t the right fit for every business, and there are a few reasons why this type of hiring might not suit you.

Disruption to projects

While flexibility can be a big draw for some companies, it might not suit everyone. Since contractors are usually focussed on short-term projects, they might not have the capacity for long-term commitments, so if you need someone with a specific skillset that is ongoing, a permanent employee may be a better fit. Having to train several contractors over the span of a project can be disruptive to your workflow, so work with a longer timeframe may be best suited to a permanent employee.

Limited ethos buy-in

As a business grows, its permanent employees buy into the ethos, culture, and values it’s established. A drawback of hiring contractors is that they may not have the same knowledge or investment in the business. Not only can this create challenges in collaboration and communication, but it can also result in work that doesn’t fully align with the business’ goals.

Higher hourly rates

Particularly in a high-paid industry like tech, the short-term savings of hiring a contractor can be negated by their high hourly rates. Naturally, you’re paying for their specialised skills, but it’s a cost that you’ll need to factor into your project budgets.

Should I hire a contractor?

Ultimately, whether an IT or tech contractor is right for your business will depend on your needs. Contract workers are ideal for short-term projects with the need for a specialised skillset that’s not already present in the business, but companies that desire a true commitment to their long-term goals might benefit more from a permanent employee.

Contract recruitment with Applause IT

If you’re ready to start hiring for a contract job, we can help. We have over 20 years of experience in tech, IT, and digital recruitment, and we’ve helped businesses find the perfect candidates for permanent and contract roles alike.

Get in touch today to discuss how we can work together to find the right fit for you.