CEO Corner- Contracting VS Permanent Work From An Employers Point Of View

Written by Soong Chong, CEO

Is your company feeling the pressures of budgets and covering short-term gaps and meeting short, medium & long term goals?

Below is a brief analysis of how contractors and permanent staffing can resolve it.

Contractors

Pro's

Budget Pros:

• There are no extra training costs. The contractor will already have the skillset for the specific task or project.

KPIs/Goals Pros:

• Short term gaps and goals of the business is immediately covered
  
  
• There is no requirement to redeploy staff or find new work for the contractor once the task/project is complete

Con's 

• There can be a significant investment in time to find the "right person" for the role unless you use an recruitment agency.
  
  
• Knowledge may leave with the contractor and therefore leave the company, with the project completion
  
  
• Short contracts usually results in no staff loyalty.

Permanent Staff

Pro's

Loyalty & Commitment:

• Permanent employees tend to be more committed and loyal to the business
  
  
• Knowledge stays with the employee and therefore with the company

Con's

Budget Cons

• Permanent employees incur a lot of additional costs to a business including but not limited to: paid leave, superannuation and training. 
  
  
• Companies incur the expense of programs such as work-life balance and if implemented incorrectly, could result in the outcomes being incorrectly measured.

KPIs/Goals Cons:

• The need to find continuous work for permanent staff members