Knowing When to Hire Full-Time vs. Contingent Staff

As a business, determining when to hire full time vs. contingent staff can be a daunting task, especially given the current talent shortage facing the IT industry. If you need someone to solve problems long-term, consider full-time employment; But, if you need skills for a short period of time, consider a contract worker. Both full-time and contingent staffing have its pros and cons but choosing between the two ultimately boils down to the overarching business goals.

Full-Time Employment

The biggest advantage of hiring full-time staff is that it leads to long-term growth. When you know you have a demand for long-term work, full-time employment fills the gap and delivers stability within the business model. Not only do you have an employee and their skills at your fingertips, but they are embedded into the company and its culture.

Full-time workers create security, with a qualified and reliable individual always on-deck. An employee who feels less stressed and more valued, respected, and appreciated will exhibit a greater level of loyalty and productivity compared to those with negative experiences. A full-time employee will develop company-specific skills and provide the business with stability and long-term success.

Contingent Staffing

In December 2017, 20% of American workers were contract workers or independent contractors. Since then, analysts estimate that contract workers make up as much as  As the new normal of remote work maintains its prevalence, contract work is finding its way into the modern employment culture model. Contingent staffing opens the door for highly specialized workers who can help meet timely needs while avoiding any additional costs like training.

Contract work is growing, and it is an innovative way to yield flexibility and save money. A recent study found that the cost of hiring full-time over contract workers in IT was much more expensive, from taxes to benefits. If skills are only needed for the immediate short-term, a contact worker is the ideal route to take with limited costs and risks.

Making the Decision

Choosing between full-time versus contingent staffing comes down to doing what’s best for your company. Full-time employment leads to long-term growth, immersing that individual into the company culture and fostering respect, loyalty, and productivity. Contingent employment is perfect for short-term projects, as it is less costly and targets in-demand skills. When making the decision, consider the overarching business goals and the companies specific needs, along with why you’re hiring. For IT Staffing and Consulting, contact us today.