Employing a contractor

Q: What to consider when recruiting contractors?

• Rates of pay: How will contractors be paid? Who will pay them (intermediary?) How will they report their time (timesheets, tech platform?) Who will monitor this? Smaller projects might benefit from an hourly rate, whereas longer projects might be weekly or monthly. At Give a Grad a Go, we’ll cover all of this for a margin charged on top of the contractors’ costs. • Contracts and IR35: Before you hire a contractor you’ll need to decide what type of contract to offer. Will it be a fixed-term contract or a casual employment contract? It’s also important to adhere to IR35, enforced by HMRC to combat disguised employment. Ensure that you’re paying the correct amount of the tax and national insurance, to avoid interest and penalty charges. • Sourcing and vetting: The contractor recruitment market is fast-moving and competitive. Self-employed contractors don’t hang around when looking for the next project. A contractor’s availability could change quickly (faster than the perm market) and good contractors often get multiple offers. Map out the job spec, start dates and process, then prepare for a quick turnaround.

Q: What are the benefits of hiring contractors?

• Quicker recruiting process: The recruitment of contractors is generally quicker, as contractors tend to be hired solely for certain skills with less consideration for long-term fit within the company. • More flexibility when you employ a contractor: Hiring on a rolling basis gives flexibility. You’ll have a fluid workforce that you can scale back very quickly should the market require you to react. Employing a contractor also allows you to evaluate whether a permanent position is required further down the line. • Specialised or niche skillset: Hire a contractor for their expert knowledge or niche skills. Having someone with this sort of expertise can significantly help the company to evolve and grow. • Faster to onboard contract employees: Contractors generally come with experience that is suited to the project they’re ‘employed’ to do. So, they’re often quicker to onboard too (ideal for remote working) with a lot less handholding. Less strain on resources means you might save on training budgets and equipment, too. • Make a great impression from the outset: As hiring contractors is usually on a temporary basis or for a shorter time-period, they know the importance of making an excellent impact from the moment they join. • Contractors are adaptable: Accustomed to working with different personalities and in new environments, contractors tend to settle in quickly. They can sometimes offer fresh perspectives and insight into how the business could operate more efficiently.

Q: What are the disadvantages of hiring contractors?

• The more niche the role, the higher the rates: The higher the skill-set required, the more expensive a contractor’s rates tend to be. Whilst this is also true for perm hires, contractors’ rates can escalate very quickly. • Contractors sometimes like to move from job to job: It can often be part of the reason they choose to be contractors, and can make scaling businesses more difficult if you’re overly reliant on a workforce that isn’t with you for the long haul. This is often why they’re used in such large volumes within larger corporate companies. • Using a contractor might require adapting: As every company is different, there can sometimes be a trade-off between how the contractor usually works vs fitting in with how the company likes to work, which might not always go smoothly (or get the result the business was after).

We’ll help with recruiting contractors.

We take great pride in promoting positivity in the workplace – creating a fun and cooperative working environment that filters through to the way we help candidates find their ideal jobs, and the support we give businesses in helping them grow.

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When to hire a contractor?

There are many instances in which hiring a contractor might be the best option.

1. Whether you’re starting a new or one-off project and need some more hands on deck, or if you’re seeking a particular skill in an area of expertise.

2. Contractor hiring is beneficial for any business that has made the very difficult decision to let staff go but is faced with short-term spikes in work. Or, if work is steadily increasing but the confidence isn’t there to warrant taking on people permanently; then recruiting contractors could offer a great solution.

3. We’ve even seen contractors hired to train junior members (who are permanent). This might seem odd, but you’re then only paying the higher costs of experienced individuals on short-term contracts, whilst gaining well-trained junior talent on lower salaries. A cost-effective solution to building up teams.

There are many other benefits of hiring contract employees, read on to find out more.

From the initial recruitment process to being offered a full-time position at my placement company a year later, my experience as a contractor under Give a Grad a Go employment has been nothing but positive.

Onboarding was without hassle, holidays were approved promptly, and my HR representative Claire has provided fantastic support throughout my entire time here, up to and including the backing of my transition to a permanent employee.

It feels as if Give a Grad a Go is an extension of my company, providing support when needed but otherwise letting you get on with your new role so much so that it is easy to forget you have a different employer! I would not hesitate in recommending this route into work to a friend or any recent grad.

George – Contractor at Multinational Logistics Company

What are the benefits of hiring contractors?

The recruitment of contractors is generally quicker, as contractors tend to be hired solely for certain skills with less consideration for long-term fit within the company.

Hire a contractor for their expert knowledge or niche skills. Having someone with this sort of expertise can significantly help the company to evolve and grow.

As hiring contractors is usually on a temporary basis or for a shorter time-period, they know the importance of making an excellent impact from the moment they join.

Hiring on a rolling basis gives flexibility. You’ll have a fluid workforce that you can scale back very quickly should the market require you to react. Employing a contractor also allows you to evaluate whether a permanent position is required further down the line.

Contractors generally come with experience that is suited to the project they’re ‘employed’ to do. So, they’re often quicker to onboard too (ideal for remote working) with a lot less handholding. Less strain on resources means you might save on training budgets and equipment, too.

Accustomed to working with different personalities and in new environments, contractors tend to settle in quickly. They can sometimes offer fresh perspectives and insight into how the business could operate more efficiently.

What are the disadvantages of hiring contractors?

The higher the skill-set required, the more expensive a contractor’s rates tend to be. Whilst this is also true for perm hires, contractors’ rates can escalate very quickly.

As every company is different, there can sometimes be a trade-off between how the contractor usually works vs fitting in with how the company likes to work, which might not always go smoothly (or get the result the business was after).

It can often be part of the reason they choose to be contractors, and can make scaling businesses more difficult if you’re overly reliant on a workforce that isn’t with you for the long haul. This is often why they’re used in such large volumes within larger corporate companies.

What to consider when recruiting contractors?

Rates of pay

How will contractors be paid? Who will pay them (intermediary?) How will they report their time (timesheets, tech platform?) Who will monitor this? Smaller projects might benefit from an hourly rate, whereas longer projects might be weekly or monthly. At Give a Grad a Go, we’ll cover all of this for a margin charged on top of the contractors’ costs.

Contracts and IR35

Before you hire a contractor you’ll need to decide what type of contract to offer. Will it be a fixed-term contract or a casual employment contract? It’s also important to adhere to IR35, enforced by HMRC to combat disguised employment. Ensure that you’re paying the correct amount of the tax and national insurance, to avoid interest and penalty charges.

Sourcing and vetting

The contractor recruitment market is fast-moving and competitive. Self-employed contractors don’t hang around when looking for the next project. A contractor’s availability could change quickly (faster than the perm market) and good contractors often get multiple offers. Map out the job spec, start dates and process, then prepare for a quick turnaround.

Contractor recruitment is big business because of the speed and depth of the market. The support of a reliable agency with an extensive candidate database will prove to be extremely valuable.

Hiring a contractor through Give a Grad a Go can be a real time-saver, we’ll take away the administrative pain that comes with employing someone. We employ the candidate ourselves, meaning we handle all employment aspects including background checks, onboarding, contract signing, monthly payroll administration and offboarding.

As with any hiring, there’s no blanket solution that works for all. But, with so many businesses having gained so many advantages from using contractors, it is a business case that you should consider if you haven’t already.

Get in touch!

If you’ve been looking for recruitment agencies for contractors,
please get in touch today to find out how we can help you hire the best talent.

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Contract Recruitment FAQs

Contract recruitment, also known as contract staffing or temporary staffing, is a hiring model where businesses engage external professionals on a contract basis for a specific duration or project. Contract hire involves partnering with contract recruiting agencies or directly hiring contractors through internal recruiters.

In contract recruitment, the contracted professionals will work for the business for a fixed period of time, usually defined by the duration of the project or the need for short-term help. Contractors may be hired to fill in for an absent employee, support a special project, address seasonal demands, or provide expertise in a specific area. They can be found across various industries – from recruitment contractors to trade contractors.

Contract hire for business offers flexibility; Businesses can quickly access skilled professionals with specific expertise without committing to long-term employment contracts. It allows companies to scale their workforce based on fluctuating demands and effectively manage their resources.

To summarise, companies that hire contractors are able to meet short-term staffing needs while offering professionals an opportunity to work on diverse projects and expand their experience.

If you found this explanation of ‘what is contract recruitment’ helpful, and think that contract recruiting could benefit your business, check out our contract hire recruitment services.
When you’re thinking about hiring contracted employees, the difference between a freelancer and a contractor can be unclear. To make sure you’re making the right hiring choices, it’s important that you have a clear understanding of this distinction.

Here’s a breakdown of the main distinctions between a contractor for hire and freelancer recruits:
- Working arrangement: Contract recruiting refers to the hiring of an individual or a company to provide specific services or deliver a particular project. A formal contracted employee agreement is made for a predetermined duration or until the completion of a defined task. A freelancer, in contrast, is an individual who works independently and is not bound by a long-term contract. Freelancers usually offer their services to multiple clients on a project-by-project basis.
- Independence and autonomy: Contractors tend to have more autonomy and control over their work compared to freelancers. Contract employee benefits include greater flexibility in setting schedules, determining methods of work, and managing resources. Freelancers also enjoy a degree of independence but may have less control over the terms and conditions of their work, as they typically work on projects provided by clients.
- Scope of work: The decision to hire contractors is frequently associated with larger projects that require a broader range of skills or resources. Contractors may undertake complex assignments involving planning, management, and coordination of various tasks. Freelancers often focus on specific skills or niche areas and are typically engaged for smaller projects or short-term assignments that require specialised expertise.
If you’re still unsure about whether hiring contract workers is more suitable for your business than hiring freelancers, we’re happy to provide our expert advice – just get in touch!
When looking at the contract staffing definition, contractors are not understood to be permanent employees. Contractors are generally treated as independent entities or self-employed individuals.

The contracting vs employment distinction lies in the fact that contractors are only engaged with a business for a fixed duration determined by a contract dependent on either the length of a project or the need for temporary assistance. Contractors are understood to be an answer to short-term business needs, whereas employee hires are more of a long-term business investment.

Relatedly, contract vs permanent recruitment has its differences. The choice between the two depends on the specific needs of a business, the nature of the work, the required skills, and the budgetary constraints. Many businesses employ a combination of both approaches to optimise their workforce and meet varying business needs.
One of the great benefits of contract employment vs permanent is the flexibility. A contracted worker’s contract can be changed depending on the initial agreement between the contractor and the client employer. It is common for contract agreements to include provisions for modifications, amendments or extensions should circumstances necessitate a contractual change.

If both parties agree to the contract change or extension, such as modifying the scope of work, adjusting the duration, or revising the terms and conditions, a contract addendum or an updated contract may be executed to reflect the new agreement.

Relatedly, you may also ask ‘how often should employment contracts be renewed?’

Renewals are usually negotiated when the initial contract with employee is about to expire, but the client employer requires continued services. In such cases, if both parties agree to extend the contract, they may enter into a contract extension or renewal agreement to specify the new duration and any other relevant terms.

It’s important for both parties to communicate and collaborate effectively to address any necessary changes or extensions to the contract. Clear and open communication can help ensure that both the contractor and the client or employer are on the same page and can adapt to evolving needs and circumstances.
If you’re looking to make contract hires through a specialist contract recruiter, that agency will undoubtedly charge a fee for their services.

Contract recruitment agencies will vary when it comes to how much they charge for sourcing contract hires. The cost of contract recruitment fees often depends on factors such as location, industry, the level of expertise required and the duration of the contract. However, most agencies charge their fees based on a salary percentage of the contractor for hire.

At Give a Grad a Go, we’re proud to offer contract recruitment services on a no-upfront-cost basis, meaning that we only charge a fee when a contract recruit is found. Our contract recruitment process is charged at 18% of the candidate’s starting salary, with a free replacement guarantee should that candidate fail 3-month probation.

If you’re not sure how to hire contractors, outsourcing the process to a contractor recruitment agency is the best option. Get in touch with our expert team to kickstart your contract recruiting with confidence!