The real cost of a contractor – not just the numbers!
When it comes to hiring, many businesses will often default to permanent hires without even considering the option of bringing in a contractor. However, this can be a costly oversight.
Whether a contractor is right or not will be unique to each situation of course and dependent on a number of factors, including: the business and what it’s trying to achieve, the role and its responsibilities/deliverables and also the budget. Of course, when hiring for any role, consideration should also given to how long the interviews will take and allowances for onboarding time, and the impact of this to the business.
There is also usually a misconception that contract and permanent hires are completely separate and that they can’t go hand-in-hand, and often there is no overlap. However, this isn’t always the case. Very often, contractors can complement your permanent hiring plans and are also a much easier route to market, so why aren’t they considered?
Well, quite simply - the cost. Contractors are perceived to be far more expensive than their permanent counterparts. And yet, in reality, contractors (or interim professionals) are highly beneficial to a business and often cost less; not just from a purely financial perspective, but they can also be far more cost-effective and efficient choice for businesses.
1. Access to Specific Skill Sets at Short Notice
One of the most significant advantages of hiring contractors is the ability to source individuals with specific skill sets on short notice. Contractors often have diverse industry experience, having worked in various roles across similar businesses over a shorter period of time. This means they bring a wealth of knowledge that your business can leverage.Contractors also typically specialise in specific areas, making them ideal for temporary or urgent requirements. They are adept at hitting the ground running, potentially reducing the need for extensive training. Moreover, contractors can also serve as mentors to junior staff, further enhancing their value to your organisation.
2. Speed of Hiring
Contractors offer a significant advantage in terms of speed of hiring. While permanent hires can be a lengthy process, contractors are usually quick to source. They often have minimal or no notice periods, and due to their specialisation, there's a higher likelihood of finding a contractor with relevant experience from a similar business.
This speed in the recruitment process is not only time-efficient but also minimises disruption to your business schedule. Contractors are often hired to deliver specific results and so do not necessarily need to fit into the company culture for the long term in the way a permanent hire would.
3. Financial Considerations
Now, let's delve into the financial aspects. While contractors in some cases have a higher overall remuneration package, they can be more cost-effective for the business. Here's why:
- No NI or Pension Contributions: Hiring firms do not have to pay National Insurance or pension contributions for contractors. This reduces the overall cost of employment.
- Payment for Work Done: Businesses only pay for the days or hours the contractor works, eliminating the need for full-time salaries during slower periods.
- Quicker Onboarding: Contractors typically have shorter onboarding processes, saving both time and money.
- Insurance and Payroll: Contractors often handle their own insurance, and payroll is usually managed efficiently through specialised services or umbrella companies, reducing administrative burdens on the hiring firm.
- Flexible Scalability: Contractors are an excellent option for businesses looking to scale quickly or handle busy periods without the long-term commitment of a full-time hire.
- No Sick or Holiday Pay: Contractors do not receive sick or holiday pay, further saving the company money.
A benefit to your bottom line and your operational efficiency
Hiring contractors offers numerous benefits to businesses. They provide fast access to specialist skills, quick turnaround times, flexibility, and cost savings in terms of salaries, benefits, and administrative overheads. Whether you need temporary expertise for a specific project, are looking to scale rapidly, or want to navigate busy periods more efficiently, contractors are a viable and cost-effective solution. Don't let misconceptions about the costs deter you from considering contractors as a valuable resource for your firm. By understanding the true impact they can have on your business, you can make informed decisions that benefit both your bottom line and your overall operational efficiency. Maybe a contractor isn't such a bad idea after all?
At EMR, we are always working with a bank of talented professional marketing contractors who often have minimal or no notice periods. And due to our sector specialism, the likelihood of us having a contractor with experience from a similar business to yours is higher. If you’d like to discuss if a contractor is right for your business or need help to hire talented marketing contractors, please get in touch. We’d love to help.
Sign up for more insights
Related jobs
Salary
£45000 - £50000 per annum + Benefits
Location
City of London, London
Job Type
Fixed Term Contract
Discipline
Design
Seniority
Manager
Salary
£45,000 - £59,999
Sector
Financial Services
City
London
Description
Senior Graphic Designer - 6-month FTC
Reference
RPML_1715975159
Expiry Date
01/01/0001
Author
Ronak PatelAuthor
Ronak PatelSalary
Negotiable
Location
City of London, London
Job Type
Permanent
Discipline
Social Media
Seniority
Specialist
Salary
£30,000 - £44,999
Sector
FMCG & Consumer Services
City
London
Description
Working for a leading health and wellness company this role will see you working fully remotely and joining their existing marketing team.
Reference
PR/132497_1715960506
Expiry Date
01/01/0001
Author
Rebekah CrampAuthor
Rebekah CrampSalary
£50000 - £62000 per annum + Bonus + Benefits
Location
City of London, London
Job Type
Permanent
Discipline
Marketing (general)
Seniority
Manager
Salary
£60,000 - £79,000
Sector
Financial Services
City
London
Description
Marketing Manager - B2C Financial Services
Reference
RPTR_1715783271
Expiry Date
01/01/0001
Author
Ronak PatelAuthor
Ronak PatelSalary
£80000 - £90000 per annum
Location
Doncaster, South Yorkshire
Job Type
Permanent
Discipline
Digital Marketing
Seniority
Director/Chief
Salary
£80,000 - £99,999
Sector
Events & Hospitality
City
Yorkshire and Humberside
Description
Digital Sales and Marketing Director for a leading Tourist Attraction and Entertainment Destination in Doncaster, South Yorkshire.
Reference
PR/132492_1715773235
Expiry Date
01/01/0001
Author
Amy McCrowAuthor
Amy McCrowSalary
£80000 - £90000 per annum
Location
London
Job Type
Permanent
Discipline
Digital Marketing
Seniority
Director/Chief
Salary
£80,000 - £99,999
Sector
Events & Hospitality
City
London
Description
Digital Sales and Marketing Director for a leading Tourist Attraction and Entertainment Destination in Doncaster, South Yorkshire - Relocation support available
Reference
YWP/MD_1715773426
Expiry Date
01/01/0001
Author
Amy McCrowAuthor
Amy McCrowSalary
£75000 - £83000 per annum + Bonus + Benefits
Location
City of London, London
Job Type
Permanent
Discipline
B2B
Seniority
Manager
Salary
£80,000 - £99,999
Sector
Financial Services
City
London
Description
Senior Marketing Manager
Reference
RPE_1715613814
Expiry Date
01/01/0001
Author
Ronak PatelAuthor
Ronak PatelSalary
£45000 - £55000 per annum + + Benefits
Location
Sheffield, South Yorkshire
Job Type
Permanent
Discipline
Social Media
Work From Home
Work From Home
Seniority
Manager
Salary
£45,000 - £59,999
Sector
Education
City
Yorkshire and Humberside
Description
Become a Social Media Manager for an education platform that specializes in providing educational material for students and parents across the UK.
Reference
PR/132491_1715611396
Expiry Date
01/01/0001
Author
Shanelle GreenAuthor
Shanelle GreenSalary
£400 - £500 per day
Location
England
Job Type
Contract & Interim
Discipline
Brand Marketing
Work From Home
Work From Home
Seniority
Manager
Salary
£500 - £749
Country
United Kingdom
Sector
Professional Services
Description
Brand Project Manager needed for a 9-month contract with a global professional services firm
Reference
CR/132486_1714572853
Expiry Date
01/01/0001
Author
Sam BrimbleAuthor
Sam BrimbleSalary
£45000 - £55000 per annum + 20% Bonus + Benefits
Location
City of London, London
Job Type
Permanent
Discipline
Marketing (general)
Seniority
Manager
Salary
£45,000 - £59,999
Sector
Financial Services
City
London
Description
Event Manager
Reference
RPP_1714477382
Expiry Date
01/01/0001
Author
Ronak PatelAuthor
Ronak PatelSalary
£30000 - £35000 per annum
Location
London
Job Type
Permanent
Discipline
Social Media
Work From Home
Work From Home
Seniority
Executive
Salary
£30,000 - £44,999
Sector
FMCG & Consumer Services
City
London
Description
Social Media Manager for a fast-growing hair and skincare brand known for premium quality products that are affordable.
Reference
PR/132484_1714400129
Expiry Date
01/01/0001
Author
Amy McCrowAuthor
Amy McCrowRelated posts
Teaser
Career adviceContent Type
ArticlesPublish date
05/14/2024
Summary
Marketing & Communications Leader Series Podcast Welcome back to EMR's Marketing and Communications Leader Series. In this podcast, we dive deep into the journeys of exceptional senior marketing and c
Teaser
Career adviceContent Type
ArticlesPublish date
05/13/2024
Summary
Over the last few years, we're seeing a significant change in the landscape of the marketing sector, pushing brands to adapt and implement new ways of advertising. This shift has ushered us into a new
Teaser
Discipline expertiseContent Type
ArticlesPublish date
05/10/2024
Summary
The Marketing & Communications Leader Series Podcast Welcome back to EMR's Marketing and Communications Leader Series. In this podcast, we dive deep into the journeys of exceptional senior marketing
Teaser
Industry newsContent Type
ArticlesPublish date
05/08/2024
Summary
The recruitment industry has experienced seismic shifts in the last few decades. With technological advances and changes in the workforce landscape, client expectations have evolved significan
Teaser
Career adviceContent Type
ArticlesPublish date
05/08/2024
Summary
EMR is uniquely positioned to understand the transformative nature of communications in the marketing industry. In this dynamic field, roles in communications are constantly evolving. The underlying f
Teaser
Career adviceContent Type
ArticlesPublish date
04/26/2024
Summary
Marketing & Communications Leader Series Eepisode.1: Bee PatelWe are pleased to be launching EMR's Marketing and Communications Leader Series. In this podcast, we dive deep into the journeys of excep
Teaser
Discipline expertiseContent Type
ArticlesPublish date
04/18/2024
Summary
In the wake of the global pandemic, the tech industry has embraced change and innovation in the way it operates and manages its workforce. The shift to remote and hybrid work, the acceleration
Teaser
Case StudiesContent Type
ArticlesPublish date
04/18/2024
Summary
Spotlight: Property GPE is a UK property development and investment company - it mainly owns office buildings, with a smaller amount of retail property. The company invests in and develops cent
by
EMR Recruitment
Teaser
Case StudiesContent Type
ArticlesPublish date
04/18/2024
Summary
Spotlight: B2C Based in Palma, Italy, Barilla is an Italian family-owned food company and the world’s largest pasta producer. Established in 1877, it’s now an international Group present in mor
by
EMR Recruitment
Teaser
Discipline expertiseContent Type
ArticlesPublish date
04/02/2024
Summary
The pandemic has fundamentally changed the way businesses operate and reshaped clients' expectations, emphasising the importance of agility, efficiency, and digital fluency in service delivery. At
Recently viewed jobs