Reducing costs and increasing quality are crucial elements of strategic planning, and a healthy workforce is essential to achieving these goals.In addition to permanent employees, businesses can also benefit from hiring contract workers as specialised talent to meet their short-term needs and drive specific projects forward.
By tapping into the growing trend of flexible work arrangements, companies can optimise their talent strategies to gain a competitive edge in a rapidly evolving market. Approximately 12 million workers have identified themselves as independent contractors in 2024, and this number is on the rise.
In Airswift's 2025 GETI report, multiple sectors within the energy industry also attribute a globally mobile talent pool to the rising use of contractors.
Harvard Business School researchers also found that with 90% of companies hiring both full-time and freelance employees, the shift to an on-demand workforce will only continue to accelerate.
When the scenario calls for it, there are various advantages of hiring contractors over permanent staff. Our article aims to help readers better understand the benefits of working with specialist contractors.
Contractors are not just a solution for general staffing challenges; they play a vital role in addressing sector-specific needs.
Here are some industries that have embraced contractors as an integral part of their workforce:
The decision-making process to hire a worker as an employee or contractor is done on a case-by-case basis. Here are three questions to ask yourself when considering hiring a contractor.
Understanding the key differences between direct hire and contract hire is essential in choosing the right hiring model for your business needs.
One of the key benefits of hiring contractors is the potential for significant cost savings. On a practical level, full-time employees come with a range of financial obligations, including:
On the other hand, although you might have to bear the cost of a recruitment agency, when you hire contractors, you're only responsible for paying for the specific hours they work on a project regardless of their skill level. This allows businesses to reduce financial strain, increase cash flow, and allocate resources more effectively.
In today’s fast-paced business environment, flexibility is crucial. Hiring contractors offers major benefits to organisations the agility needed to respond to fluctuating workloads, changing business needs, and project uncertainties.
Unlike full-time employees, contractors provide businesses with the ability to adjust their workforce based on current demands, without the long-term commitments. This flexibility allows companies to customise payment terms, expand or reduce their workforce as needed, keeping costs aligned with business requirements.
When hiring international talent in locations where your company lacks a physical presence, dealing with visa applications, work permits, and payroll can be complex. By hiring international workers as contractors, businesses can reduce the complications involved in managing these legal requirements.
Another option is to partner with an Employer of Record (EOR), which assumes the role of the legal employer for international workers, taking care of all HR and compliance responsibilities.
If you choose this approach, it’s crucial to ensure proper worker classification to avoid potential penalties.
Finding the right permanent candidate can be time-consuming, and even after hiring, there’s no guarantee that the new hire will be a good fit for the business.
Hiring a temp-to-perm contract employee via an external agency on a contract basis gives businesses the chance to test their specialist skills in the role before committing to a permanent offer.
This flexible, low-risk approach allows companies to evaluate how candidates adapt to the company culture and manage their responsibilities. It’s especially valuable when hiring for senior roles, which often come with higher compensation and decision-making responsibilities.
By using this method, you can closely assess an employee’s performance and fit within the team before making a permanent offer, reducing the risk of costly hiring mistakes.
Contractors often have a wealth of experience working with multiple clients across different industries, giving them exposure to a variety of companies and work environments. This allows them to offer unique insights and perspectives on the projects they’re involved in.
Their detachment from the organisation also allows them to approach problems with a fresh, objective viewpoint, helping them contribute innovative solutions that go beyond conventional methods.
Being outside the business structure, contractors are in a position to suggest new strategies and facilitate decision-making without the influence of internal biases, making them valuable assets for driving change and innovation.
As a global workforce solutions provider, we partner with the energy, process, and infrastructure sectors to deliver unparalleled expertise and support. With extensive experience across both contractor and permanent recruitment, human resources is at the heart of everything we do.
Connect with us to to find out how we can support your talent acquisition needs.