Is it time to start Contracting? (5 min read)

When hiring companies always start with the question, do I need a full-time employee or a project based contractor?

Each alternative has a distinct series of advantages and disadvantages and we’ll explore each so you have all the tools to understand which option makes most sense for your specific circumstance.

Today let's take a close examination of the contract route and when that would be a valuable choice.

Advantages:

IT contract employees are typically viewed as a shorter-term investment. They are the subject matter experts that are brought in to complete a project in a fixed amount of time. They are expected to know the problems better than the average technologist in their discipline and offer solutions to remedy them.

There is a greater focus placed on project scope and planning than on culture or vision.

You don't need to worry as much about performance reviews or incentive-based bonuses as a reward for the work done simply because of the nature and duration of their employment.

Companies pay more upfront in contract rates but depending on the duration of the contract, they can allocate it as a fixed cost.  The onboarding process for contractors is also faster than that of full time employees because the fixed employment time frame presents less risk and therefore there is less of a need to subject them to the same levels of scrutiny as a full-time hire since the risks are lower. Therefore, contractors can often get running on important projects on a more expedited timeline.  

Disadvantages:

Depending on how they are utilized, contractors can be very rewarding or very expensive. Without proper foresight as to the clear direction of the project and their goals, you could end up hiring the wrong contractor or inefficiently using the right one. Contractors tend to have a short term mentality, so they may not be invested in your culture and long term objectives. They also sometimes tend to focus on the project objectives and what they can offer instead of worrying about how they can make the firm the best it can be. Contractors are set in terms of time, so when they are done, they will leave unless their time is compensated for.

Advice:

A contractor can be a great addition to a team and can really shore up weak links when it comes to technology. You must have clearly defined projects, understanding of project duration and fixed budget before engaging in contract services.

Consultants and contractors are exactly what their names suggest, they are there for an apportioned contractual commitment or they are there to advise and consult you on the best course of action for a particular project(s). As such, it is vital to make sure that there is always a knowledge transfer between the contractor and some member of your team.

I have heard of stories where contractors have extended their durations simply by making themselves the most indispensable person in the department, thus forcing the manager to rely too heavily on someone who is outside of the core team. Also, it is advisable to shorten the interview process with a contractor as this person will be less invested and can tackle your most critical issues right away.

Let me here your thoughts if you agree, disagree or need any advice on finding yourself a new contract role!

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