In today’s dynamic corporate environment, where everything has a transient and temporary approach, companies have been juggling between the modern concept of Contract Hiring and that of conventional full-time employees. Employing a permanent employee brings with it a sense of commitment towards each other by both the parties. But this relationship is dying in most organizations.

The process of getting a permanent employee involves a long recruitment process that is both, time and resource intensive. Moreover, you need to comply by all employer laws and mandates. As a result, more businesses are embracing the modern trend due to the cost and flexibility benefits. For the candidates also, it comes as an advantageous deal as it offers them more freedom and control over their work. They can decide how much time they want to devote and how much money they want to earn.

Thus, it can be said that the conventional 9 to 5 permanent job is slowly moving towards its extinction and the number of full-time workers is declining fast. As per a recent study, by 2020, 40% of America’s workforce will comprise of contract, self-employed and temporary workers.

Here are a few factors that will help you make more informed decisions while deciding the type of talent you need for your business requirements:

Costs Involved

You need to come under much of cost liabilities on hiring a full-time employee. These include health benefits, vacation leaves, payroll taxes and compensation, etc. ACA compliance has made the employment more expensive in such cases.

Thus, contract hiring can save you fortunes! Though, these contact hires now do have some right over benefits, but they will be cheaper than your full-timers anyway!

Attrition Rate

With full-time employees, there is always the concern relating to employee retention, or controlling the high attrition rates. Also, you need to train employees while assigning them different projects and have to spend heftily on those training and development programs.

Whereas, the work tenure of contractors is specified and short. The very concept of pre-fixed tenure is the best part of this trend. Employers need not worry about candidate turnover as they know that when the work will be over, they will leave. You hire the ones who perfectly match your resource requirement for particular tasks and can easily replace them when the task is completed.

This is a no liability concept and so you need not to worry about attrition!

Resource Engagement

Unlike full-time employees, engagement of contractors is limited within your organization as they know that their association with the company is short term and they focus more on delivering the outcomes that are expected of them.

These resources are strictly adhered to their contract parameters and involve only that much as is needed. They also do not contribute in any other organizational activity or other ways.

Thus, these aspects may help you decide what type of team you need for different projects in hand. You must ask yourself different question on the basis of these 3 critical parameters and then evaluate your need and organizational goals. This will help you making the most appropriate decisions.