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.

The Changing Landscape of Employment

The U.S. national unemployment rate is 9.6%, and the percentage of unemployed who have been out of work for more than a year has risen to 30.9%. (October 2010 figures from the Bureau of Labor Statistics.) The situation leads us to consider what has changed, perhaps permanently, in the corporate work environment. Here are a few trends we have heard, read and learned about that could affect decisions you make about your career:

• Companies are increasing their use of contractor resources, in lieu of hiring permanent employees. Companies don’t provide expensive benefits to contractors, which can make this practice more attractive financially. And contractors can be hired and released at will, with minimal legal implications. TAKEAWAY: Although you might prefer to land a permanent position, reconsider working as a contractor – at least in the near term. This adds experience to your résumé and money into the bank.

• During this period of austerity, when employers ARE hiring they are often looking for people with a broad range of skills and experience. They may have previously eliminated two positions that they now want to fill with one person who wears several hats. TAKEAWAY: Your resume should highlight the breadth of your interest and experience. If you lack important skills, consider taking some classes and gaining appropriate certification(s).

• Labor statistics reveal that companies prefer to hire people who have been unemployed for a shorter period of time. (A discouraging fact.) TAKEAWAY: During your unemployment, do some work that you can add to your résumé, even if it is unpaid. Take some substantive responsibility with a volunteer organization. Get involved at your child’s school. Accept a temporary contracting opportunity. Work part-time for a relative who has a cottage business. Consider starting your own small business.

• Companies are doing what they have to do to stay viable during tough times. You need to do the same. Neither an emotional investment in your work nor misplaced loyalty should cloud your judgment when the wellness of your career is at stake. TAKEAWAY: Pay attention to what is changing around you in your company’s workforce. Make decisions that are best for you, while retaining ethical behavior toward your employer.