Contractor staffing is an arrangement wherein a 3rd party provides staffing solutions to a client company for a specific period of time (3, 6, 12 months or longer), at a specified hourly “bill rate”. And while contractor staffing is for a set period of time, the contract can be renewed.
In traditional employee-employer relationships, companies hire individuals directly, who then become full time employees. But with contractor staffing, a number of work models are employed to suit the overall needs of your organization as well as the contractor. If you’re a company that is looking for flexible ways to fill skillset gaps within your organization, turning to the services of a contractor staffing agency is a common practice.
What to Consider?
Your need for contractor staffing will largely depend on the nature of your project requirements. Software companies for example, want to find seasoned and skilled developers that are experienced in the software code & frameworks they use. Defense contractors may be seeking employees with security clearances, and US citizenship. Contractor staffing can fill in such voids as they generally have access to a wide database of contract employees that fits these specifications.
You might also want to consider other factors such as:
Scope of the work, length of assignment, subject matter expertise requirements, etc.
Opportunity costs of hiring an employee vs. contractor
Ability to fund and maintain contractual staff within your organization
Your long-term, as well as short-term staffing needs, business goals, and market conditions
When to Hire a Contractor?
A contractor staffing agency providing contractors should work closely with you and your management in order to first set up the details of the requirements. This includes scope of work, services provided, bill rate, and so on. Contractor staffing is very beneficial when:
It is no longer feasible for your company to maintain your own HR staff, since they handle most of the paperwork involved in recruitment and staffing. This leaves you and your managers free to tend to other tasks, projects, and pursuits.
You have an open position for a job of a specialized nature or require multiple skilled workers for a specific job that is not long lasting nor something that your business handles continually.
You only need a particular set of workers to complete a specified task or during a particular season.
Hiring a long-term employee(s) isn’t economically feasible, or due to location, a contractor is the only option to fill your needs.
With projects constantly kicking off and concluding, it can be difficult to manage the recruiting on your own, and it might be expensive to hire permanent employees to perform such tasks. It is in such cases that contractor staffing bridges the recruitment and expertise gaps that such organizations might face.
Contractor staffing now will not only free up your management’s time, but it will also help them to save on overhead costs in the long run. Compared to full-time/perm employees, a contractor can be more affordable, and will also work with your organization beyond the employee hiring process. This includes active training and development, imparting soft skills, and so on.
So Who Takes Responsibility for the Contractors?
The staffing agency assumes the process of sourcing, screening, and presenting the contractors to their clients. In addition, the staffing agency will cover all the necessary insurance and payroll. The staffing agency also takes care of finding the right employee for your specific job. Their access to large pool of freelance workers will ensure the best fit for the role in your specific department.
Contractor staffing can be complicated, and choosing the right staffing agency can be a daunting task. Just make sure that you do thorough research and find a provider with experience and positive reviews.