Hiring Your SAP Subcontractor Full-Time

November 22, 2023

During labor shortages or periods of abnormal demand, companies may resort to subcontracting workers. Subcontractors can be tremendously valuable and provide benefits that traditional employees don’t. They provide cheaper labor in the short term than fully hiring new employees if it’s unclear whether they will be needed in the future. Additionally, subcontractors may have specialized skillsets that may only be needed for a definite initiative.

Below, we discuss key considerations and benefits of hiring your SAP subcontractor full-time.

Considerations

Oftentimes the largest risk with hiring a subcontractor is the timing. Bringing them on full-time means losing the ability to quickly offload costly labor in the case of a recession or drop in demand. Additionally, severance packages may come into play whereas they are often absent for subcontractors. This risk may be worth it, however, if a firm knows an SAP project will continue for an extended period and retaining talent is necessary.

If it’s clear that additional full-time employees are needed, firms must then determine who to extend offers to. While subcontractors do provide a host of benefits, this does not always mean that every subcontractor on a team will be a good fit. Companies should evaluate whether a good subcontractor would make a good employee because the demands of the roles are different.

Finally, firms must consider whether a subcontractor with a niche skillset has the ability to develop alongside the company. For example, an SAP subcontractor may excel at software implementation but may not easily learn other important aspects like taking client meetings or team management. While this is manageable if the company can afford siloed skillsets, many mid-market or smaller firms require an ability to adapt to changing needs.

Benefits

The advantages of hiring a subcontractor are numerous. From a cost standpoint, it’s more expensive to recruit, interview, and onboard external candidates. It also takes valuable time in which the hired subcontractor could already be providing services to the company.

Additionally, a subcontractor is already familiar with company culture. This is especially true for a tenured individual who has been with the firm for an extended period. Consequently, they understand what is expected of them individually and as a member of a broader culture. A proven track record of meshing with the firm’s culture may far outweigh any impressions made during short interviews with external candidates.

Subcontractors also have experience with the firm’s clients and project types. For example, an SAP subcontractor who is brought on full-time may understand company specific project flow that would take new members time to learn. Thus, this allows them to transition into the role much faster and potentially provide better results.

Finally, SAP subcontractors can prove their skills and expertise beyond basic certifications. Whether the subcontractor is with the firm for one project or an extended period, they are able to demonstrate proficiency in ways that technical interviews or résumés may not encapsulate. This may also extend to soft skills which are not as easily shown in the hiring process.