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Many organizations today have moved to more of a “try before you buy” philosophy.  What I mean is they are hiring people on a contract basis, usually anywhere from a month to a year, to determine if that person would be a good fit for their organization long term.

As you may know, the process of onboarding a new employee is not cheap.  There are taxes, insurance and benefits that have to be accounted for and it can be quite expensive.  What if your new hire finds a higher paying job in a month or doesn’t work out for whatever reason?  Yep, you are back to square one and will have to incur all those costs all over again when you find the replacement.

With contractors you have the chance to avoid those costs while obtaining talent to perform the duties that need to be completed.  The other “cost” that comes into play is the cost you incur for every week, day and hour that the position is not filled.  You are missing out on productivity which in turn means you are missing out on either money earned or money saved.

Are there any perceived downfalls to using a contractor?  Sure there are.  It may take 2 or 3 hires before you find the one that fits your long term goals.  Another perceived downfall is that you will need to pay a higher hourly rate for a contractor than you would a permanent employee.  This is done to make the position attractive and to offset the fact the potential contractor will have to pay for their own health insurance and they do not receive any PTO.  Also, if you used a recruiting firm to find this contractor, then they have to make money as well.

The question becomes how much money will be lost by not having this position filled, plus all the costs and resources to find someone, compared to what you have to pay in an hourly rate.  In most cases the contractor route is cheaper in the long run.

With all that said, contracting employees is not for everyone in every position.  But if your recruiting strategy is coming up short on a need-to-fill position, consider engaging in a recruiting firm to discuss this option.

Think about it, wouldn’t it be nice if you could always “try before you buy” any product or service that is out there?


About ARC Group©

ARC Group©, the parent company of Recruitment Intelligence™, has been an industry leader for over 25 years in the full time, contract and temp-to-hire recruiting and consulting sectors.  Named to the South Florida, Jacksonville and Minnesota’s Business Journal’s list of “Top 25 Executive Search & Consulting Firms” we have a national footprint, and service locations throughout the US, including Miami, Fort Lauderdale, Palm Beach, Jacksonville, Minnesota, Chicago and Washington. Learn more at www.ARCGonline.com