What Unique Things Can Contractors Offer Companies?

| February 21, 2013 | 0 Comments

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Working as a contractor enables professionals to do many things that those who are permanently employed by a company cannot. From the freedom to set your own hours to being able to receive payment in a more tax-efficient way, contractors also have a host of benefits employers can take advantage of.

Indeed, while businesses of all sizes and across a range of industries retain a keenness to expand in 2013, the fact that the global economy continues to be uncertain means many firms are cautious about taking on staff on a permanent basis.

This was confirmed in the research carried out by the Association of Professional Staffing Companies (APSCo), noting permanent placements in professional and management level positions fell to two per cent in 2012, with hiring activity for the year below that recorded in 2010 and 2011. Despite the decline, however, there is still an appetite among many organisations to bring skilled workers onboard. This is where the unique way in which contractors work can prove to be much sought-after.

“Rather than making permanent hires, many businesses may want to wait and see what 2013 will bring,” APSCo chief executive Ann Swain notes. She adds that while last year was not the greatest year for those searching for long-term positions, working on temporary projects enables professionals to develop their skills and gain vital additional experience.

Data from the organisation also showed there was a particular increase in contract hiring in the IT industry over the past 12 months. Here, recruitment activity was up by six per cent over the year and, while permanent employment rates also grew, it was to a lesser extent.

In hiring contractors, businesses may find they can boost their workforce in a much more cost-effective manner. Hiring staff on a permanent basis can be a significant financial commitment for businesses, not just because of the wages that they need to pay, but also for things such as pension payments.

Companies will also need to bear in mind they may be liable to make redundancy payments, something that may well occur as troubles in the wider economy continue to rumble on.

Of course, contractors must be paid for the work they do, but the fact that they can be laid off without redundancy costs does make them an attractive proposition to employers. However, the organisation noted that despite many businesses being set to increasingly rely on contractors and other temporary employees to meet deadlines and work on projects, hourly rates for many IT roles are likely to “remain constrained in 2013”.

Despite this, it looks very probable that contractors will see their skills become more sought-after over the next 12 months. Whether you’re entering the world of contracting for the first time or have been in the profession for several years, it’s safe to say that the fact you can lend your specialist skills to a business for a short period makes you a hiring option that companies ought to consider.

If you are hoping to gain more contracts, it’s a good idea to call on the services of an expert accountancy and payroll services provider. That way, you will have more time to devote to working on projects, while ensuring that all your tax and financial requirements are met.

If you’re working as a contractor let us know what you are doing to make sure companies have the incentive to take you on by leaving a comment below.

Category: Wealth Building

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