While making use of contractors to fill those hard-to-find and senior roles come with its own long list of distinct advantages, it also opens the company up to a number of issues that are not present with full-time employees. So how can employers mitigate those potential risks?
In today’s competitive employment marketplace, a growing number of employers are favouring workers with the expertise they need on a contract basis rather than hiring permanent employees for the most highly skilled and better-paid position.
For contractors, this is great news – a career path that was once seen as being ‘risky’ has become one that can potentially be very rewarding. For employers, however, the benefits of hiring contractors over permanent employees can often be missed over the myriad of constantly changing employment legislation.
Here we take a look at the key reasons why hiring a contractor could be good for your business, and some of the drawbacks of doing so.
1. Reduced costs
Yes you may have to pay a little more in wages, but when you factor the benefits, training and staff development costs you will be saving, contract workers are more cost-effective.
2. Expanded executive talent pool
The number of freelance contractors in the UK is growing each year, particularly among more seasoned and senior professionals who no longer wish to be employed on a permanent basis. Which means that is it highly likely that the best candidate you need will come from this talent pool rather than more traditional routes.
3. Increased flexibility
Contractors can be hired on a project-by-project basis, short or long term. Given the very nature of their work, they are used to hitting the ground running and delivering results sooner than you would perhaps expect from a permanent employee.
4. Expanded location
Hiring permanent staff quite often sees employers limited to a defined geographical region. Of course, this has its limitations, whereas the contractor pool opens up the possibility of recruiting workers from – literally – anywhere.
5. Specialist talent
An experienced contractor will have worked with a number of different companies making use of their specialisation. Their experience of working in other areas of the industry will provide them with an insight and set of transferable skills that could greatly benefit your organisation – something that a permanent member of staff may have not had access to.
6. Cultural issues
Making use of contractors from abroad may lead to cultural issues. On one hand, global mobility is a huge driving force in modern industry, and means you can literally hire the best person available to work for your company. On the other, it means that there are more hoops to jump through, and even more stages to bringing them across the border in the first place, but this is where your Umbrella partner can help you.
By having contractors manage their own work-hours through an Umbrella provider, such as One Click, the day-to-day task of managing that employee’s tax, expenses and PAYE responsibilities, for example, are taken off your hands. What’s more, your partner managing payroll means that your company is reputationally, financially and legally covered.
Umbrella companies themselves come with a certain risk factor. One Click is the only Umbrella Company currently endorsed by the Institute of Directors and Eversheds through its ‘Safe Umbrella’ award. Instead of your business being held back by the negatives, One Click takes the responsibility and the effort out of hiring the best contractor for the job.
Along with over 13 years experience in the contractor payroll industry, and after spending most of his working life as a financial advisor in the regulated financial services industry, Mike has garnered an extensive network of contacts in the recruitment industry, many of whom trust both him and the One Click Group to handle their accounting. Mike has also been a member of various industry bodies throughout the years, such as the British Institute of Recruiters, in order to champion best practices across the contractor payroll industry.