Contract staffing: the new IT recruitment model
Adopting a contract staffing model when hiring for IT teams can be beneficial in the changing tech talent landscape.
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Contract staffing: the new IT recruitment model
Why is recruiting and retaining tech talent so hard?
It’s a question our recruiters hear from clients daily. Demand for IT professionals is at an all-time high, and so is turnover. According to Gartner’s 2022 Global Labor Market survey, “Globally, less than one in three tech workers say they have a high intent to stay with their current employer.” By 2030, it's projected that more than 85 million jobs will go unfilled because there are not enough qualified professionals - and out of this number the technology, telecommunications and media sectors will be hit the hardest.
As a result, this leaves companies in a no-win situation: let positions go unfilled or settle for a less-skilled hire. Neither choice is ideal since both mean that critical tech needs, like shoring up network vulnerabilities from cyber threats, will go unmet.
Tech professionals know they’re in the driver’s seat. It’s about more than just commanding high salaries - they want positions that prioritize career development, keep their skills fresh and offer flexibility– three requirements a traditional, full-time position may not always meet.
Rather than competing in the world of traditional IT hiring, forward-thinking companies are embracing a new recruitment model: flexible contract IT staffing on an interim or contract-to-hire basis. Tech professionals get the career opportunities and flexibility they crave, and companies have access to the top talent they need to drive business success.
Does contract IT staffing make sense for your business? There are several key benefits to consider.
With high demand and high turnover, companies are stuck in a never-ending cycle of recruiting, hiring and onboarding. As soon as they fill a vacant position, another employee departs and the cycle begins again – more recruiting expenses, more interviews and more lost time. Contract IT staffing bypasses these full-time hire challenges and quickly provides companies with experienced professionals to solve their urgent tech problems, without the back-end leg work and paperwork of a traditional hiring process.
Interim and contract hires are highly specialized, and they refine their specializations with each job they do. When they join your team, you’re getting a true expert who is ready to hit the ground running and get the job done as effectively as possible. You’re also getting a professional who is highly engaged and motivated. More than half of tech professionals say that “feeling productive” is an important part of meaningful work. Project-based assignments with set milestones and deliverables are ideal work for contractors, and it naturally aligns with their productivity goals.
Needs may evolve, but a full-time employee is always on payroll. IT contractors, however, are “off book.” An agency will cover many of the costs traditionally associated with full-time employees, like benefits and payroll taxes. Even better, there’s no need to invest limited internal bandwidth on a lengthy interview and vetting process. Contractors are available to bridge a talent gap or solve a specialist issue on an as-needed basis – leaving when a goal is met or a project is completed. This results in a low-risk, high-value solution.
In today’s evolving economic climate, contract staffing is key to an agile workforce planning strategy.
Forward-thinking organizations are adopting a flexible staffing model to address immediate talent needs while mitigating financial risk. Is your company ready to do the same? This roadmap will help your business enhance its current talent strategy to a more comprehensive approach, integrating interim and contract staffing solutions with full-time hires.
Before hiring your first IT contractor, be clear about your internal needs, timeline and budget. Is this a single project with a specific deadline, or is there an ongoing need for specialized consulting? What internal skill gaps need to be filled? Consider which needs are best met by interim or contract professionals and which positions should remain full-time, permanent hires.
Clarifying needs from the beginning of your engagement will set everyone up for success.
While contractors may cost more per hour than full-time employees, keep in mind that you’re not paying for benefits, running payroll, or investing in onboarding, eliminating these HR burdens. IT contractor flexibility means your company only pays for talent when it’s needed, which can lead to significant cost savings over the time you’re working together.
Contractors typically work on an ad-hoc consulting basis, as members or leaders of temporary project-based teams, or on a contract-to-hire basis. Depending on your company’s current needs, your organization may benefit from a combination of all three of these roles or may be best served by focusing on a single solution, like a project-based team. Consider both immediate needs and future (12-24 month) talent gaps.
There’s no need to go it alone when it comes to recruiting contractors. Capitalize on recruiting firms and their expertise to source, screen and place top talent. Experienced agencies save you time and money on background checks, compensation negotiations and paperwork. Plus, many have a pool of talent available that the average company can’t assemble on short notice.
Opting for IT contract talent can shrink the onboarding timeline from months to days, providing immediate solutions that keep your company ahead of the curve.
The IT talent marketplace is going through a major transition period. Successful companies are those who understand this evolution and are prepared to adopt innovative staffing models that benefit all stakeholders. Through IT contractors, companies gain access to high-level skills that are otherwise unavailable, bypass full-time hiring challenges and mitigate risk exposure—three essentials in today’s changing marketplace.
Ready to see what a contract recruitment model has to offer? Learn more about our Interim solutions.