Contract Employee (Temporary or Temp Employee)
Contract employees are becoming more popular as companies seek to navigate the unpredictable economy. It is simpler to hire contractors than full-time employees due to their lack of benefits and tax status.
Companies bring contract workers on board for specific projects and timeframes.
Contract employees often have niche skills and experience, and their fees and contract period are agreed upon ahead of time. Organizations use contract employees due to budget constraints and temporary needs for their specialist expertise.
The Pros of Hiring Contractor Workers
- There are several reasons you might consider adding Contract Workers to your team.
- Hiring Contract Employees allows organizations to recruit skilled and specialized workers for limited projects. The company is not required to keep them on staff for the long term without an ongoing need.
- Although they are often paid more per hour, contractors tend to cost less in overhead due to the lack of benefits and training. There is no need for office equipment and supplies when contractors are remote.
- All businesses experience busy and slow periods, including seasonal variations. This means in-house staff gets slammed at times and is idle during others.
- When your organization needs agility, contracted employees give you flexibility and rapid access to an extensive talent pool. Your organization can obtain skilled workers such as programmers, designers, writers, IT support specialists, social media marketers, etc., for a week, several days, or even a few hours. You can scale or shrink your workforce as needed.
- When hiring direct hires, you need to advertise the position and do initial screenings and interviews. You’ll also have to wait for them to give notice at their current jobs. It’s possible to get contractors on board within days.
Similarities and Differences to Direct Staff
Full-time workers get paid on an established weekly, bi-weekly or monthly schedule.
You can pay contractors on a set schedule or based on specific outputs and deliverables. Sometimes, they only get paid after project completion.
Schedule and Duties
In-house staff follow a regular daily schedule. Permanent employees perform an established set of work tasks each day.
Contractor schedules and duties are set forth in their agreements. They have varying levels of say in negotiating their work schedule.
Full-time direct hires may receive benefits, including retirement plans, health, and life insurance.
Contractors are usually responsible for covering their retirement, healthcare, and life insurance.
Direct Hires usually receive broad ongoing training.
Contract employees may or may not receive formal training. Their objectives are narrowly defined, and any training they receive will focus on expected results.
Vacation and Sick Leave
Full-timers have paid time off and sick leave as part of their contracts.
Contract workers usually do not.
Travel and Entertainment Expenses
Companies usually pay all business-related travel expenses for in-house employees.
Contractors often fund their own expenses.
Common Contractor Roles
- Data entry
- Customer Service
- Web Design
- Graphic Design
- Online Training, Teaching, and Coaching
- Search Engine Optimization
- Marketing Consulting
- Copywriting and Content Writing
- Public Relations Consulting
- Virtual Assistant
- Application Design
- Video Game Design
- Social Media Marketing
- Social Media Management
- Online Sales
- Video Production
- Audio Production
- Food and Beverage Service
- Event Planning
and many others.
Elements of Working With Contract Employees
- Draw up a binding agreement with contract workers that outlines expected outputs. It should also cover timeframes, conditions for prolonging or renewing the contract, and guidelines for termination.
Why You Should Work With Relevante to Recruit Contract Employees
Relevante can help you sort through complex employment situations to help you decide if contract employees will meet your business needs. We have a large contractor database and know how to source them.
If you are not versed in contractor agreements and the process of hiring contract employees, work with a professional recruiter like Relevante to guide you through the steps.
We have been recruiting contractor staff for over 20 years and can help you avoid all the common pitfalls. Let’s talk today. We’ll help you decide whether contractors make sense for your business.