The average time to fill a vacancy has doubled in the past six months, and although applicant numbers are at an all-time high, good people are still hard to secure. Adding ‘Recruiter’ to your already overloaded task list and wading through hundreds of unsuitable resumes is not only a bad use of your time but is likely to be deprioritised as not urgent. Many hiring managers we are speaking to are close to burnout as they navigate cost-cutting measures and wear multiple hats.
But the work still needs to be delivered, and often the work is urgent. This is where hiring a contract resource as needed makes good business sense. With this in mind, I’ve outlined a list of benefits below on why engaging IT & Digital contractors in a recession is the best option for your business (and likely your well-being).
Save money and reduce fixed costs
Meet cost-cutting initatives
It is a fallacy that contractors are more expensive than full time employees (FTEs). You can, in fact, save money by hiring contract resources rather than carrying permanent headcount.
Permanent staff tie up capital and incur many expenses not required for contractors. On top of salary, it is mandatory at a minimum to cover holiday and sick leave, training and development, KiwiSaver contributions and statutory holidays for FTEs. For contractors – you pay only for hours worked.
Engaging contractors is a cost-effective option when compared against the fixed costs of hiring FTEs, because it offers a flexible way to progress business initiatives.
Rather than increasing headcounts, Lexel Resourcing can enlist specialists for short-term engagements, paying only for the hours worked or the outcomes achieved, often under a Statement of Work. Pay only for the resources you need – when you need them.
Access the best talent
Quickly find the right fit
We have all experienced how difficult the IT & Digital talent market has been since Covid, and while there has been some softening, it is still very hard to attract and secure top talent when you need to.
Contractors back themselves as being the best at what they do – they are pre-qualified and referenced, professional and skilled specialists, with a reputation for coming up to speed quickly and adding value.
Increase your talent pool to include access to the best IT & Digital talent in the market by engaging contractors.
Scale up and down quickly
Organisational flexibility
Switch contract resources on or off as required, providing the ability to pivot at speed to changes in your business or the market.
- With an underperforming employee, it can be challenging and time consuming to work through the process of letting that person go.
- If a contractor is not meeting expectations, it is much easier to part ways from a legal, cultural and team morale perspective – simply define the notice period required in the contract for services. No hard feelings. No HR involvement. No additional costs.
Engage the right skills at the right time
Adapt easily to changing demands
Flexible resourcing allows businesses to engage ‘fit for purpose’ contractors and subject matter experts – the exact skills you need, exactly when needed.
If business needs change, simply let the contract resource go and replace them with a resource better suited to the new requirements
Immediate productivity
Contractors require less training
Contractors are already highly skilled in the services you need so don’t require the same level of onboarding and training. Contractors are often used to ‘cold starts’ so they are in a position to come up to speed quickly to begin adding value. Hiring top contractors offers additional benefits of access to specialised expertise and knowledge that they can transfer to your permanent employees.
No headcount approvals required
Less red-tape
Most organisations have much less stringent policies around hiring contractors versus hiring FTEs. This makes it easier to get in highly skilled contractors who can get started straight away on helping you achieve your goals.
Less management input
Contractors are experienced in working to required outputs
Contractors are industry professionals who take a great deal of pride in delivering a high quality of work. They are invested in doing a great job, as a positive referral will help them obtain their next engagement. Contractors, once provided with the outcomes expected, tend to be self-directed and require minimal training or daily guidance.
Contractors offer diverse work experiences and innovative ideas
Help to upskill your FTE staff
Contractors offer a unique quality that few permanent employees can: a large volume of diverse work experiences. This means that contractors can give insights into current best practices, trends and technologies being utilised by other businesses. They may be able to suggest innovations that are entirely new to your industry – providing serious competitive advantage.
An opportunity to ‘Try before you buy’
See the true benefits before committing
A company may wish to engage in a contract-to-hire model, engaging a contract resource with the view to converting them to a permanent employee as headcount becomes approved or available.
This offers the employer many benefits, which include:
- Gauging whether the resource has the necessary skills, is suitable for the role and a cultural fit before making a long-term commitment.
- Observing the resource performing in the role – much more effective than a traditional interview process.
- Accessing and onboarding talent quickly without the need to involve HR and then converting to permanent at their convenience.
It makes sense to work with experts to deliver fast, quality results. Over the past ten years, I have built a specialist team of IT Resourcing professionals who deliver IT contract and permanent talent to a diverse range of NZ organisations.
I would love the opportunity to discuss how we can help you cut through the noise by providing quick and cost-effective IT talent solutions.
Let’s chat – book your ‘Coffee break’ here and we’ll be in touch to ask for your hot beverage of choice.
Amanda van Ryn
Lexel Resourcing General Manager
With over 20 years IT recruitment experience in New Zealand and Asia, Amanda has worked to set up in-house recruitment centres for organisations, as well as with agencies large and small; in roles from consultant through to general management.