Hiring for Long-Term IT Projects: Contract vs. Full-Time

As businesses prepare to start hiring for long-term IT projects, there are many areas that require consideration. Long-term IT projects in are often a large undertaking and must be staffed appropriately to ensure success. The best way to do so is by hiring a balance of contract workers and full-time employees. Contract workers can offer flexibility, while full-term employees can be better for efficiency.  

Below, we dive deeper into the different considerations companies should think about before and during the process of hiring for long-term IT projects. 

COMPARING CONTRACT VS. FULL-TIME TALENT

Contract Workers

Benefits

Hiring contract workers can offer many benefits for an organization. For starters, hiring contract workers provides organizations with access to specialized expertise that they may lack in-house. Contract workers are often experts in specific areas and can be brought in as needed to offer support on projects that may need this experience, such as software development or cloud security management.  

Contract workers also allow for increased flexibility, as businesses can scale up or down as needed as the project progresses. That said, contract workers are especially valuable for project-based work, helping businesses scale and save money by avoiding full-time  commitments. Additionally, many contract workers control and manage their own workflow, reducing the need for oversight and management.  

Drawbacks

While contract workers offer many benefits, there are drawbacks to this type of staffing that organizations should consider. For example, contract workers can result in a lack of  knowledge retention, which can lead to a substantial investment for the organization later down the line. Once a contract worker finishes their employment period, all the knowledge and support they have provided often leaves the company too. Sometimes organizations can build knowledge transfer into the workers contract and ensure their organization retains this knowledge when the contractor rolls off. However, for some projects, where the skills needed may be applicable to future projects, it may be more advantageous for an organization to hire a full-time employee that can fulfill these skills in the long-term.  

Contract workers can also result in less team cohesion. Since contract workers come in and out of projects at various times, they may not always make the effort to fit into a team’s dynamic. Furthermore, since most contract workers are independent, they may not be as invested in your company’s goals and values.  

Full-Time Employees

Benefits

Organizations can gain many advantages from having full-term employees on a project. First and foremost, hiring full-time employees builds knowledge within the business. This knowledge retention can support more effective execution of future projects, regardless of project scale and duration. Employees that are there long-term have more time to get invested in the company’s success and can strengthen the company’s workforce. This also increases company stability, avoiding turnover and keeping on employees that are familiar with the organization’s goals and needs.  

Drawbacks

There are still some considerations organizations should take into account before hiring full-time employees. Full-time employees offer limited flexibility, meaning it is much harder to scale the workforce up and down if needed.  

Full-time employees also mean fixed costs. Organizations pay these employees a salary, including benefits that can be more expensive than contract workers, especially if full-time talent isn’t needed. Hiring full-time employees is also a longer process, and organizations looking to staff a project quickly may not have the appropriate amount of time allotted to do so.  

FINDING THE RIGHT FIT

Deciding whether to hire contract workers or full-time employees is unique to each specific organization’s needs. Contract workers thrive in project-based areas like ERP implementations, while full-time employees often work in more tenure roles like software maintenance and management roles. Furthermore, contract workers can be a great option for businesses that need flexibility and specialized skills, while full-time employees are an ideal option for organizations that need knowledge retention. For most projects and initiatives, organizations can use a combination of contract workers and full-time employees to fulfill their needs.  

Need help hiring for long-term IT projects? Our team at Bull City Talent Group can connect you with the talent you need to get started. Click here to learn more.  

Contributions from Natalie Pollock