Financial misconceptions about IT contractors
We understand that every business model looks different, and deciding whether to hire IT contractors can be challenging.
Many people are under the illusion that contractors cost a lot of money to employ. There are admittedly different costs involved when hiring a contractor VS a permanent member of staff, however we are here to explain the misconceptions about hiring contractors, and deliver the facts.
Let’s get started…
It may surprise you to learn that hiring contractors can be a highly cost-effective option for businesses. This is because contractors typically charge an hourly or daily rate for their services, as opposed to receiving a fixed salary like permanent employees. This arrangement makes it easier for both parties to manage expectations and budget effectively, and often allows businesses to get more value for their money. Contractors tend to be highly productive and require minimal training, making them a smart choice for companies looking to streamline their operations.
In addition, contractors are usually available to start working on projects right away, bringing valuable skills and experience with them.
Unlike permanent employees, contractors are not entitled to benefits such as pension contributions or employee perks, which means businesses can save money on these additional costs. If you choose to hire a contractor, they take care of this themselves and do not have the same financial rights as permanent employees.
Let’s look at an example…
We have done the maths for you, and considered the expenses that businesses can expect to pay for their permanent members of staff, versus a contractor.
Let’s take an Infrastructure Engineer for example…
As you can see from the graphic, businesses have less financial responsibility when it comes to hiring interim staff or contractors to undertake projects. If you’re looking for a short-term hiring fix, a contractor will alleviate financial pressures and allow room for budgeting.
Are you considering hiring a contractor?
Have you got a gap in your workforce and are wondering how to fill it? Hiring an independent contractor may be the way forward, even if it isn’t something you have considered before.