How to Measure the Success of a Contract Placement

In today’s unpredictable workforce, contract placements have become a vital staffing solution. They provide firms with the flexibility to address short-term needs which may require a specialized skillset. Unlike permanent hires, these temporary arrangements are focused on achieving well-defined outcomes within a set timeframe. Thus, measuring the success of contract placements is crucial to ensure that firm resources are being maximized. 

Below, we dive into the key factors that measure the success of a contract placement.  

Measuring the success of a contract placement

Were the objectives met?

Primarily, the success of a contract placement is based on whether or not the pre-defined objectives of a role were completed. For example, an IT contractor hired to develop a new software feature is expected to deliver a functional, user-friendly module within the stipulated timeframe. 

Were the deliverables of high quality?

The completion of a task or project, however, is only the first barometer of contractor success; organizations must also look at quality, as the quality of work produced is telling of a contractor’s effort. Quality assessments often involve reviewing the contractor’s deliverables against industry standards or internal benchmarks to see where their work falls. For example, a firm may collect peer evaluations, feedback from supervisors, or satisfaction surveys from end-users or clients regarding the contractors’ work in order to gauge whether they underdelivered, met, or exceeded expectations. Within IT especially, the robustness, efficiency, and user experience of a product are key quality indicators.  

Was the project cost-effective?

Cost-effectiveness is the next measure of success for a contract placement. Organizations often turn to contract workers as a way to manage costs associated with permanent employees such as benefits and long-term commitments. In turn, a contract worker’s upfront cost may be significantly higher, meaning a contractor must deliver outsized value during their shortened time at the firm. This involves analyzing the return on investment (ROI) by comparing the costs incurred during the contract period with the tangible benefits delivered. It must be noted that sometimes contractors have intangible benefits which cannot be calculated like adding to firm culture or supporting peers.  

These intangibles should still be evaluated qualitatively by managers. The adaptability and integration of a contractor into an organizational environment, for instance, is vital to their impact on existing workflows, as contractors who quickly acclimate are likely to be more productive and collaborative. That said, managers should focus on a contractor’s ability to communicate effectively, collaborate on projects, and work with peers. 

Was there a positive long-term impact?

Finally, the long-term impact of the contractor’s work should be considered. For example, if a contractor’s work leads to process improvements, their contribution to the firm can be weighed more heavily. Long-term benefits reflect not just the contractor’s skills but also their ability to provide sustainable improvements to the organization.  

Looking Ahead

Measuring the success of a contract placement involves several benchmarks. These may include evaluating the completion of objectives, the quality of work produced, cost-effectiveness, adaptability within the organization, and the long-term impact of the contractor’s contributions. By considering these factors, firms can better assess the success of the placement, and if a contractor demonstrates success across the aforementioned benchmarks, a firm may even consider hiring them full-time. 

Contact our experts today to learn how we can help with your staffing needs. 

Contributions from Jake Park-Walters