Full-time vs. Part-time vs. Contractor: Who Should You Hire?

April 14, 20211:31 pm949 views
Full-time vs. Part-time vs. Contractor: Who Should You Hire?
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Hiring contingent workers has become more popular during the time of COVID-19 as a cost saving-measures; but should HR consider employing a contractor, part-time, or full-time employee for the long run? 

Contingent workforce trends 

During economic uncertainty, contractors and part-timers are typically among the first cuts companies make; yet, they are also the first option business leaders will turn to in order to meet workforce needs in their companies. A survey commissioned by McKinsey showed that 70 percent of executives plan on hiring more contingent workers after the pandemic than they did before. Demand for talent is expected to increase and it might be difficult to meet this demand only with local talents. Therefore, enterprises will start sourcing for global talents, including hiring global contractors or freelancers. 

Employers also commit to normalise and make work remote for the long haul. Meanwhile, some organisations close office spaces altogether to accommodate a shrinking in-person workforce during the pandemic. For workers, the remote option helps increase their productivity and performance while maintaining work-life balance. For employers, hiring contingent workers brings in new perspectives and saves a relocation budget. Even so, HR must continuously update their policies, rewrite plans, and revise recruiting strategies to reflect an increasingly distributed workforce. 

Should you follow the trend of hiring contingent employees? 

The gig economy is growing and there is nothing wrong with following the trend – as long as you recognise which talent types are required in your company. In order to fetch the best hires, HR should revisit the purpose of hiring to determine which type of workers to hire. To illustrate, hiring full-time might not always be the best decision for every role, considering how one hiring could affect a company’s budget and sustainability. Let’s further discuss how full-time, part-time and contractor give impact to your company: 

When to hire a contractor or freelancer? Answer: When the company needs an employee for a specific type of project. 

If you need help in designing a website or setting up a marketing strategy for a specific project, hiring a freelancer or contractor would be a better fit than hiring a full-time worker. Why? A contractor or freelancer usually offers a specific type of skills they master. They have the ability to complete the task efficiently. Moreover, a contractor could save you hiring costs because of their short-time commitment to your company.  A contractor can also be found anywhere, across borders which will ease you to find the best talent for your project. 

See also: How Can HR Help Build Trust between Employees and Freelancers? 

When to hire a part-time employee? Answer: When the company requires a worker for an ongoing smaller amount of work, or when the employer has cost-prohibitive hiring or employee training. 

If you are worried about your budget, hiring a part-timer could be a solution. The clear benefit of hiring a part-time worker is that you are not legally obligated to provide them with benefits like permanent employees. Unlike hiring a freelancer or contractor, you will have a chance to onboard new part-time employees and integrate them into your business to create the same vision and build a relationship with them. 

Part-time employees are also a good alternative for an ongoing project. For instance, you want to hire someone to create and send out a weekly newsletter for your business. You will also need help to set up and manage your social media profiles. This job does not need a whole lot done, only a few hours every week. Hence, a part-time employee would be perfect for this role. 

See also: Top 5 Tips to Manage Your Part Time Workers

When to hire a full-time employee? Answer: When your organisation needs an employee for a larger amount of regular work. 

You would want to hire someone permanent who will be around all the time to take care of a large amount of work and someone who will be committed to your company. Even though the average cost per hire of an employee is relatively higher than hiring a contractor or part-time employee, the investment will be worth the money if you find the right candidate for the position. 

Hiring the right full-time employee could save your business from high employee turnover. You will also be able to take full advantage of your employee’s skills and use them in a more multifaceted capacity. Full-time employees also have a better commitment when they are suitable with their job and boss, thus they will be more inclined to put forth more effort and go the extra mile for your business.

Furthermore, if you occasionally need your employees to stay late and put in a little extra work, a full-time worker will be likely more willing to go above and beyond their duty. As they significantly invest in your full-time employees, they would potentially be the long-term best talent you have ever dreamt of. 

So, which type of employees would you hire? 

Although the contingent workforce is continuously increasing, you should always revisit your hiring plan and budget. There is nothing like the best type of employee as it all depends on your business needs. It is a big decision to recruit someone to do a project or work with you, so make sure you sit down and evaluate all your needs, options, and concerns before you sign a deal with new talents. 

Read also: 3 Recruitment Disciplines HR Need to Review