Consider this: according to the National Association of Temporary and Staffing Services (NATSS), more than half of temporary contract assignments last more than 11 weeks. More than 1 in 10 last longer than a year.
Gone are the days when companies just "need a warm body to fill in until Mildred gets back from Orlando." Companies are using contract help strategically, to complete specific projects and to manage the regular overflow of work. In my experience, about one third of contract hires eventually become full-time employees.
The role of the internal contractor impacts today's hiring trends. Project-based accounting and financial professionals are now handling extremely complex work. While the temporary accounts payable clerk is certainly still a standard, it is no longer unusual to bring in a contractor to handle mergers and acquisitions, Securities and Exchange Commission (SEC) reporting, or forecasting. While this may be slightly more expensive on an hourly rate, a contractor's flexibility allows the department to expertly handle more work without having to add a permanent staff member.
The fee for a contract employee is an hourly rate. You are billed only for the hours the employee works. The contract employee is on the staffing firm's payroll, and they are therefore responsible for unemployment and payroll taxes. In most cases, employers can hire a contract employee onto their payroll at any time. The conversion fee varies according to compensation and length of assignment.
The use of contractors attributes to company profitability because of the flexibility they provide.
Many clients are pleasantly surprised at the pedigree of contractor talent that is available. Even if you do not regularly use a recruiter for full-time positions, you may find it worth your while to talk to a recruiter or staffing professional regarding contracting solutions. With the need for flexibility, streamlined management of contractors is becoming a necessary part of doing business.
While the benefit of hiring a contractor is attaining a degree of flexibility, detriments include a potential lack of loyalty, knowledge, and company ownership. It is therefore very important to work with a reputable placement firm that screens, verifies references, and has the capacity to perform background checks. Work with a staffing professional that you trust in establishing your required criteria before accepting a temporary employee.
A word of caution: don't forget that your contract staff needs supervision. You are responsible for monitoring the work that's done by a contractor. While a staffing firm may send you an excellent contractor, most firms are not accountable for work being produced while a candidate is on your site. Supervision by a competent manager is required.
If you have a project that requires a contractor to work unsupervised, then let your staffing firm know that. They will work with you to help find the right solution to your staffing issue.