As your business expands, it is a great opportunity for you to hire the quality talent pool, whether through contracting or as permanent employees. Understand which is the best option for your organization.
Scalability
One of the primary factors you need to consider when determining the type of talent your business needs is – scalability. If your company has a relatively steady workforce or does not have significant fluctuations in business scope, then you can probably benefit from hiring permanent resources who are trained and experienced to work on multiple projects. They tend to add more value and profit margin to the company as compared to contractors; however, onboarding, training & development, and administration costs associated with a permanent employee are higher.
On the other hand, if your business constantly scales up and down to cope with increased workloads and growth, then you are likely to benefit from contracting. This will enable you to react fast and efficiently to changing workloads. The advantage is you can easily reduce or increase your need for contractual workers depending on the urgency of the project or workload. This enables you to adapt to business challenges more easily than organizations that have a stable headcount.
Training & Development
Companies that hire permanent workers have better control on the work. Furthermore, the employees can be also trained in specific areas to improve their skill set and add value to the company in the long term. Eventually, they become specialists in their field and can be utilised for multiple tasks and projects.
In most cases, contractual workers are qualified and trained, ready to set off with your company and provide dedicated expertise in a particular project. Typically, a company needs to invest less in their training and development. But at the same time, they may not develop their skill set further like permanent employees.
Thus, we could see that both permanent and contractual workers have their pros and cons, and you should consider having a mix of both depending on your requirements. Recruitment Central is a licensed recruitment agency in Singapore that can help save your time and costs with permanent and contractual placement services.
