When Hiring Contractors Makes Sense

You are faced with a project and a deadline that cannot be accomplished with the resources you have on staff. It doesn’t make sense to hire full-time team members to meet that need, only to lay them off after the crunch is over. In this type of scenario, as in some others, temporary contractors are the answer. How do you know when you should consider adding contractors to your team to achieve your goals?

• You are managing a project that requires skills you don’t have internally (and you don’t have time to learn them).
• You simply need more hands and heads than you have, due to time constraints.
• There isn’t anything to be gained by your team doing some tasks themselves (their expertise adds no specific value), and your people’s time is better spent on other things.

• It’s cheaper to hire help than to pay your people to do the work. Remember, you pay 20% + for benefits for your full time employees.

• Your project requires a spike in activity that doesn’t continue later into the schedule.

• When you want to “audition” a candidate for a permanent position.

But BEWARE:

• Don’t spend time and money educating contractors to do things that would enrich the skills and experience of your team – unless your team can partake in the education as well. Otherwise, your people will resent the heck out of the situation (and you).

• Avoid giving contractors work that your team considers “choice”, like working with new, cool technology, traveling to exotic work locations, or getting exposure to executive management.

• Don’t give contractors the same benefits/privileges as your employees, unless you want to risk a lawsuit.

• Don’t treat your contractors like slave labor. They are people too and deserve your respect. Besides, you may need them again someday.

• Be sure there is a transfer of knowledge/learning from your contractors to your employees before the end of the contract. Don’t let the knowledge walk out the door, or you may have to buy it back again later.