03 Dec Why contract IT staffing is more cost-effective for scaling enterprises
Contract IT staffing is gaining immense popularity among growing businesses, but what makes it the most cost-effective hiring option for scaling businesses? Let’s find out.
Flexibility and cost-effectiveness have become a core concern for many businesses because of the changing circumstances in the global hiring scenario. With the prominence of remote work, many businesses have had to re-evaluate their hiring process and found that having a flexible and contract-based workforce for departments like IT and business process management is a more scalable and cost-effective option than hiring permanently.
According to Financial Express, the contract staffing for the IT-BPM sector has grown by 42% in FY21 compared to the FY20 with over 50,000 people are expected to be hired contractually by 2024. So, what makes contract staffing an ideal hiring method for growing businesses?
To find the answers, read this blog as we cover what contract staffing is, the reason for its rising prominence in the post-pandemic business environment, and why it’s an ideal choice for your growing business compared to the traditional means of recruitment.
What is contract IT staffing?
Contract staffing is a rather common concept in the recruitment world. As the name suggests, it refers to the time-bound contract between company and employee to work on a certain project in a timeline.
Among the many advantages of contract staffing, the biggest one is a plethora of choice of expertise to choose from and ramp up business operations on a project for a short term as well as long term. Additionally, it provides almost limitless flexibility, as organizations can plan and facilitate the right number of contractual employees to meet their needs or for specific projects in the future.
Having a vast talent pool to choose from helps organizations make better managerial decisions in building powerful teams faster and cost-effectively.
Benefits of contract IT staffing
Lower hiring costs
Contract recruitment is ideal for businesses that want to keep their budget outflow in check without compromising on the quality of talent required for a job, making it ideal for growing and medium-sized organizations. Hiring an employee permanently requires huge investments of
both time and money and constant communication with the talent before getting them on board. And the costs don’t end there.
Hiring a permanent employee means taking care of their monthly allowances, besides their monthly salaries. Getting them on board requires further investment in time and technology. Also, it takes an average employee around 2-3 months to show visible results in a newly joined organization.
With contract staffing, the organization only pays for hours of work done, which is clearly stipulated in a contract between employer and employee. In a world where more and more employees prefer a remote work arrangement, especially for the IT department, contract staffing becomes even more cost-effective as you don’t have to make an extra investment on upgrading your office space.
Eliminating long hiring processes
Unlike traditional hiring processes, where it requires an initial assessment of the candidate, background check, and long interviews before selecting the right employee, contract staffing offers a faster turnaround from sharing the requirements for a role to onboarding them. With employee turnover rates today increasing significantly (according to the 2021 bureau of labor statics report, it was 57.3% in 2020), having an understaffed workspace can be detrimental for an organization. Here, contract staffing can help you fill those positions quickly without worrying about lengthy hiring processes, as you hire experts on a contract basis based on their skills and experience. Moreover, you can switch from one contractual worker to another quickly when the contract expires.
Finding the right expertise
Screening and filtering potential candidates to find your ideal match for a job position is the most crucial task for the HR department. In the case of IT roles, the process becomes even more fast-paced due to the huge demand in skill sets with several aspirants at a time. Contract staffing helps you find more relevant candidate profiles for the position with quick screening and hiring.
Talent for every position
Along with a faster candidate screening and hiring process, partnering with the right contract staffing service provider will give limitless options to fill every job position that your company may have. With global connectivity, the contract staffing services can provide talent for entry-level to senior positions from industry experts who will work on a contract basis.All you have to do is set your hiring goals and contract period for the said job role and communicate it to your contract staffing partner to find the right candidate at the right time.
Meeting seasonal needs
Every business has its own seasonal fluctuations in business operations, where the demand for services increases significantly, and so does the need for productive teams. Hiring a permanent employee can add a huge cost for the organization.
Contract staffing helps organizations balance their hiring budgets against seasonal demands for staff, as you can employ an extra workforce to match your deadlines during peak seasons and work on an ideal number of employees during the off-season without putting an excess burden on the company budget. This practice is especially ideal for SMEs that are unsure about the future market scenario.
With all the factors mentioned above, it’s clear that contract staffing makes for an ideal hiring strategy and solution for fast-growing organizations that want to build their business from the ground up with flexible scalability. Additionally, the current business environment is ideal for contract staffing with the rise of remote work and the need to manage the employee turnover rate.
VBeyond Corporation can help you with your staffing needs to ensure uninterrupted and sustainable growth for your organization. Through our expertise in IT contract staffing solutions, we ensure that we understand your exact technology skill set and domain requirements to identify the most promising candidates.