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Contract vs. Perm for IT Staffing

When it comes to staffing in the technology sector, you have two options: hiring permanent staff or contracting with outside talent. Both options have their pros and cons, and the choice you make will depend on a number of factors. In this post, we'll explore the benefits and drawbacks of each option to help you make an informed decision.

Pros of Contract IT Staffing

Cost savings: When you hire contractors, you don't have to worry about the costs associated with permanent employees, such as benefits, taxes, and training. This can save your business a significant amount of money in the long run.

Flexibility: Contractors are typically hired for a specific project or period of time, which means you can quickly scale your staffing levels up or down as needed. This makes adapting to changing business needs easy without the added stress of layoffs or reorganizations.

Access to specialized skills: Contractors often bring specialized skills and expertise to the table that your permanent staff may not have. This can be particularly valuable in the IT industry, where new technologies and programming languages constantly emerge.

Cons of Contract IT Staffing

Less control: When you hire contractors, you have less control over their work than with permanent employees. Contractors may have other clients and may not be as invested in your company's success as permanent staff.

Limited loyalty: Contractors are hired for a specific period of time, and once their contract is up, they may move on to other projects or clients. This can make it challenging to build a cohesive team and cultivate a culture of loyalty and commitment.

Higher turnover: Because contractors are typically hired for a specific project or period of time, they may be more likely to leave your company once their contract is up. This can create a higher turnover rate and require more time and resources to constantly onboard new talent.

Women sitting in front of a computer while working from home

Pros of Permanent IT Staffing

Greater control: When you hire permanent staff, you have more control over their work and the direction of your IT department. You can set clear goals and expectations and have more influence over their day-to-day work.

Increased loyalty: Permanent staff are more likely to feel invested in your company's success and contribute to a positive company culture. They may be more willing to go above and beyond to achieve your company's goals.

Improved retention: With permanent staff, you can build a team and cultivate a positive work environment that encourages employee retention. This can help you retain top talent and reduce turnover.

Cons of Permanent IT Staffing

Higher costs: Hiring permanent staff comes with a higher cost, including benefits, taxes, and training. This can be a significant financial burden for small or medium-sized businesses.

Less flexibility: With permanent staff, adjusting your staffing levels quickly in response to changing business needs can be more difficult. This can be particularly challenging in the IT industry, where new technologies and programming languages constantly emerge.

Limited access to specialized skills: While permanent staff may have a broad range of skills, they may not have the specialized expertise that contractors can offer. This can limit your ability to take on complex or specialized projects.

Ultimately, the choice between contract and permanent IT staffing depends on your business's specific needs and priorities. If cost savings and flexibility are your top priorities, contracting may be the best choice for your business. However, permanent staffing may be the better option if you value loyalty, retention, and greater control over your departments. By carefully considering the pros and cons of each option, you can make an informed decision.

If your company is seeking out staffing help for contract or permanent placements, PeopleToGo can help! Learn more about our staffing capabilities HERE.