Contract Staff: Boon or Bane?

Present uncertainty in the global economy has seen companies around the world incorporating contingency or contract workers in their talent management plans. Contract staff are often hired for projects, skills injection, or just to make up for a lack of permanent headcount. So what are the pros and cons of having contract staff?

Present uncertainty in the global economy has seen companies around the world incorporating contingency or contract workers in their talent management plans. Contract staff are often hired for projects, skills injection, or just to make up for a lack of permanent headcount. So what are the pros and cons of having contract staff?

So we say yes to contract staff.

Contract staff often have certain specialised skill sets which can be valuable for a project. Fresh blood can be good for generating new perspectives or ideas. During the contractual period, they can be assessed for a future permanent role. During workload peaks and trough, productivity can be maintained. The flexibility is in letting them go when the work ends without any legal repercussions, resulting in possible lower overall operating cost.

Now, let’s highlight a few risks of hiring contract staff.

As much as there are benefits of hiring them, there is also a possibility of attrition midway through a project, impacting the business. There is also a general perception that contractual staff are less motivated towards committing more than what is required to finish the work. This is probably related to the lack of fringe incentives such as bonuses or promotions that permanent staff might look forward to.

Align your organisational needs with a comprehensive talent management strategy. That will determine the level of reliance on contractual staff which might turn out to be your star performer!