Benefits of Contract vs Direct Hire

May 14th, 2020 by Cassie Fisher

Benefits of Contract Workforce


Contract workforce: an efficient and flexible way to meet business demands

Timing of reopening is a dilemma for businesses worldwide. This summer looks to be on the backside of the curve, so is now the time to start rebuilding and hiring? What happens if there’s a resurgence of COVID-19 in the fall and companies need to cut costs again?

A contract workforce could be the best solution now, and here’s why:

The hiring process is quicker, easier, more flexible and costs less than direct hire


  • At Whitaker, we see contract orders filled 43% faster than direct roles and average open to start for contract is 48% faster
  • Top candidates submitted typically within 24 – 48 hours after job order is received
  • Onboarding can be done remotely with little to no in-person interaction/paperwork

High level subject matter experts enhance the existing team without the long-term commitment


  • A contractor is ready to work with minimal ramp-up time, saving time and money in keeping a project moving forward as scheduled
  • A contractor can help identify gaps, share best practices and provide recommendations that increase user performance
  • Extreme flexibility; if COVID-19 reemerges, easy to ramp up or ramp down with project scope

Ability to bring on new talent under project budget without adding headcount


  • Scale team based on peak load of business initiatives
  • No contractor furlough or severance costs
  • We offer a prorated contract to hire fee based on how long the contractor has already worked

Little to no hiring costs


  • Contractors receive administrative support through their contracting company which covers hiring costs and payroll overhead
  • At Whitaker we provide:
    • Payroll taxes and worker’s compensation insurance
    • Pre-employment drug screen and background check
    • Reference checks
    • Pre-employment paperwork
    • Onboarding process

 


Tech bosses to increase temp headcounts

“Many are discovering that a year-round mix of core in-house employees and temporary workers is an efficient and flexible way to meet business demands and remain competitive. “Responding to a survey by Robert Half, Managers cited the following reasons for increasing contractor headcount:

  • Lack of financial resources to hire permanent staff
  • Cost efficiency
  • Faster hiring process
  • Skills shortage

Read full article


 

While contract offers many benefits, there are situations when bringing on top talent full time is the best business decision (leadership, company growth, build long-term team around SME, etc.). If you need to hire long-term talent, we know the market and key players, and can quickly put you in touch with top candidates. Also, with contract or direct hire, we can help with remote onboarding.

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