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Contractors Are Better

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Why make that risky long term commitment to a new employee when a contractor would provide significant added benefits.

A contractor would bring:

  • Try Before You Buy - a substantial reduction in risk. In the interview process you have only an hour or two to choose a candidate that will be on your payroll for years. Starting out with a contractor lets you see how the candidate performs over several months. If you see what you like then you still have the option of offering a permanent position.

  • Reduced Payroll Overheads - eliminate that gap between salary and cost. Managing employee benefits is a major cost in most organizations. Direct costs like government payroll taxes and indirect costs like benefits administration are a burden to the company that few employees appreciate. There are no hidden costs in a contract and the billed time is the only cost you see.

  • Objective Analysis of the Position - find out the real job requirements. Once hired most employees settle into a routine and develop a subjective view of where they spend their time. A contractor must justify every hour they bill so a review of the billing records brings clarity and reality to an assessment of job duties. Moreover a contractor can provide an objective analysis and documentation of the position you will never get from employee.

  • Tailored to Meet a Changing Environment - why use a hammer when you need a wrench? Technology changes, organizational changes, competitive environment changes mean new skills and approaches are required. Employees resist change because they know how to do last year's job successfully. A contractor must constantly justify their contribution to the company. It is easier to see when a contractor stops contributing and much easier to fill the position with a replacement who can contribute to the current needs of the company.
This is an old page but it is the reason for the migration to the "gig" economy. In the beginning employees with deep work histories could do better as contractors. As IT employment declined it became the only way to get work. Finally "software as a service" and off shore support made contracting difficult.