The Benefits of a Contractor

In some cases, good employees leave organizations and companies are left with gaps in staff. Either way, hiring a consultant can be the answer. As HR professionals and contractors we see the benefit in hiring interim or consultants to alleviate the stress staffing issues cause on a company. If you have never considered a contractor, now might be the time.

Here are eight scenarios that demonstrate why you may want to consider a contractor:  Contractor vs Employee

One-off, short-term projects

Companies often find themselves struggling with a lack of resources or skills for projects that may be one-off or short term. This can include undertakings such as IT or systems implementations, compliance requirements for new legislation or policy, and process/efficiency evaluations, among others. A contractor provides you with a more flexible arrangement to complete these projects without needing the commitment of a permanent employee.

Financial advantage and risk mitigation

Contract workers often result in cost savings to organizations. While they may earn a higher wage, you will often save on costs such as taxes, benefits, training and development, redundancy payouts and vacation pay that ultimately end up being more costly in the long-term. In addition, you can protect your organization from unforeseen legal issues and costs as most contractors maintain their own liability insurance.

Leaves of absence

Employees may go on leave for a number of reasons, such as parental leave, a sudden illness or sabbatical. Upon these departures, you may be required to bridge a skills gap or cover responsibilities for a certain period. It is helpful to utilize a contractor in these circumstances, as they can cover off a predetermined timeline or can be used for an indefinite period until you find a more permanent solution.

Fill Immediate need

Imagine that you are in the middle of developing your budget and your CFO suddenly leaves. Contracting with an interim CFO is a great way to assist in this type of situation for a couple of reasons. Firstly, they are experts at entering an organization at difficult times. They have experience dealing with new processes, cultures and teams at a moment’s notice. Secondly, their productivity is instant as they are trained experts in their field and are used to navigating various systems and procedures. Hiring interim support not only helps fill the immediate need, but also gives the organization time to critically think and assess their next move.

Specialized knowledge and expertise

As an organization, you may come across situations where you require specialized knowledge in a particular functional area. Whether it be, specialization in compensation, labour relations, project management, systems integration or technical experts in fields such as engineering, or geology, there are a variety of individuals with specific expertise that are available for contract or interim positions.

Mentoring or coaching

Many companies are faced with an aging workforce and as their businesses have grown, have neglected effective succession planning at the leadership level. In many cases, organizations have strong technical talent willing to take the next step, but have not yet mastered the strategic skills required to take on leadership roles. The use of an experienced interim professional with both a functional and mentoring/coaching mandate may be beneficial to the long-term success of organization. Furthermore, these individuals can be utilized in technical development and performance management scenarios.

Interim Coverage

Interim coverage can provide the necessary temp staff for companies until a replacement can be identified. On average it takes 3-6 months to get through the recruiting process for key roles in most organizations. 

Manage peak work load periods

In certain industries, workloads can fluctuate substantially at different times throughout the year. This can sometimes have negative consequences such as employee burnout and inefficient performance, or it may mean that you simply need more hands on deck. For example, finance and accounting teams encounter a substantial increase in work load during month-end or year-end reporting. This is a great opportunity to utilize contract workers to help get through these busy periods.