The rise of contracting: Why businesses are turning to contractors

An increasing number of organisations are hiring contractors and technical talent on an ad-hoc or temporary basis as they look to combat skills gaps and meet business critical deadlines. Contractors are typically hired on a temporary or fixed term contract with the aim of successfully completing projects without committing to a permanent hire. Data from TotalJobs’ Hiring Trends Index shows that 17% of businesses are looking to increase the number of temporary staff and contractors they hire. 

Contractors are generally paid more than permanent employees with the lack of job security, lack of employment benefits, and short-term nature of their work. They are usually paid on a daily or hourly basis, depending on the agreed terms of the contract. This differs from outsourcing, where payment is made once the work is completed. 

Temporary contracts are more common in some countries than others due to differences in employment law and culture. In our experience, we’ve found that contracting is common in the USA, UK, and Ireland due to the sheer number of construction projects and sites that are currently under development. 

How does the contractor hiring process work? 

The hiring process for contractors is typically more streamlined than it is when hiring permanently, as there are fewer factors that must be considered. Typically, if the finances, the duration of the contract, and the scope of the work are all agreed upon, both parties will be interested in collaborating. Because of this, employers should ensure to provide straightforward terms upfront to make the hire as smooth as possible. 

For contractors, it’s crucial to build strong relationships with recruitment consultants because they often rely on them to find a role that fits their skillset. When the opportunity arises to work on a project, consultants can recommend a contractor with a proven track record that is guaranteed to deliver. Many of these opportunities are not advertised publicly, so a recruiter really can open doors for contractors. 
As a result, contractors work closely with recruiters rather than applying directly to the business. This also makes it important for businesses to build close relationships with recruiters, as they will then have access to a wide pool of the best talent in their industry. 

Interested in hearing more on for contracting can benefit your business and meet short term business needs? Get in touch for a confidential conversation with one of our contract recruitment experts. 

What skills and traits should businesses look for in a contractor? 

One of the main reasons businesses hire contractors is to benefit from the specific skillset and knowledge they possess, which is crucial to combat the current skills gaps present across a range of industries. To make sure contractors are ready to hit the ground running, they should already have all the necessary skills required for the project so there is no need for a period of training. They should be able to effectively handle tasks from day one to ensure deadlines are met and business is not disrupted, while adapting quickly to new systems and processes. 

Contractors don't necessarily need to fit into the team culture from a social or team fit perspective when it comes to contract or temporary work. From both a candidate and client perspective, long term cultural fit and business alignment is much less important than for permanent hires. They must, however, be compliant with legal regulations and be able to provide any documentation required for the role. 

The benefits of contracting for businesses 

Flexibility 

One of the main advantages of hiring contractors is the ability to test new roles and projects without committing to making a permanent hire. If the role proves to be necessary and adds value, the business may then decide to hire permanently. This flexibility helps employers avoid a scenario where they hire an individual only to realise that they are not needed long-term and redundancies must be made, which would likely have a negative impact on morale throughout the business. 

Cost-effectiveness 

Although hiring contractors may seem like a more expensive option, it can save businesses a lot of money in the long run. Contractors are paid for the work they do without additional benefits such as holiday leave. They are experts who are specifically brought in to achieve a certain goal or complete a task, so they are more efficient in getting the job done, saving valuable time and resources. 

Access to skills 

Contractors are a great way for businesses to quickly access niche skills that may not exist internally. They can often complete tasks that nobody else in the business can. It can be difficult to hire employees with highly sought-after skills full-time, so contractors are important to widen a company’s talent pool. 

Adaptability 

Contractors offer businesses the ability to adapt to spikes in demand by temporarily increasing their workforce. This is particularly useful for seasonal businesses and project-based industries. In these industries, such as construction and IT services, contractors provide the flexibility to bring in highly skilled professionals and technical talents when needed. 

Common misconceptions about hiring contractors 

One of the biggest misconceptions about hiring contractors is that they are far more expensive than permanent employees. While contractors may come at a higher upfront cost, they usually save businesses in the long run as they do not require holiday pay, bonuses, or training periods. There is also no commitment once the project is complete, making contracting a cost-effective solution for short-term business needs. 
Some people also believe that contractors lack the commitment and motivation that full-time employees have. However, contractors are highly motivated to deliver results because their reputation and future opportunities rely heavily on their performance. They are required to complete set tasks in a set timeframe and are highly efficient as a result. 

Some small to midsized businesses perceive contracting to only used by larger organisations, which have fewer budget constraints. In reality, contractors can be beneficial for companies of all sizes, even startups that need to manage cash flow while still accessing top talent. Contractors provide a flexible solution that allows smaller companies to bring in specialised skills without any long-term commitment.  

Why choose CSG Talent as your recruitment partner for contractor hiring? 

At CSG Talent, our extensive industry knowledge and worldwide talent network ensures that you can access your sector’s leading contractors that fit your project’s specific needs. Our expert consultants take the time to truly research and get to know all candidates so they can identify who has the necessary skillset to deliver results from day one, allowing you to focus on business growth and innovation. Whether you’re looking for a short-term contractor to complete a project or a full-time employee to help your business grow, contact CSG today.