Thursday, May 29 2014

The Pros and Cons of Contract and Direct Hire

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Hiring an IT professional can be a difficult process, depending on critical business needs, complexity of information, and level of experience required. When bringing a new IT professional on board, there are two options: direct hire and contract hire.

From an employer’s perspective, both are good options, but for different reasons. A direct hire is generally ideal for very high level talent and for candidates which are a perfect fit in terms of skill, culture, and long-term goals. Direct hires are not as good of a fit for candidates who will be either part time, temporary (a year or less, generally), if the job is a new position and still lacks clarity, or if the candidate’s fit is still questionable.

Contract hires are not inferior from any perspective, and shouldn’t be treated as if they are. However, contract hires help businesses “test out” a candidate’s performance for a pre-determined amount of time. For some of the same reasons, contract hiring is ideal for temporary and part time work – for example, managing a database that doesn’t require very much maintenance, or running security patches on a less complex system a few nights a week.

Implementation of a new system, like EHRs, or training for a new platform are also good reasons to choose contract over direct hiring – in part because they’re generally a pre-determined amount of time, or, in some cases, an indefinite amount of time – but a lighter workload.

An employee, however, has a different perspective, although it’s not necessarily contradictory. In many cases, a contract hire is a good thing, as it guarantees work for an employee. Furthermore, having several contracts for different part time jobs helps to diversify your portfolio, resume, and skillsets, and experience new areas of growth. Contract to hire can also allow you an opportunity to build a relationship with a future employer, so when the time comes to fill a spot as a direct hire, your name comes up first.

A direct hire position, however, usually provides more stability and benefits as an employee. This generally means that an employer has a long term investment in you and your success, and while there are benefits to either, this is ideal for most candidates.

Regardless of the type of employment you’re seeking, we can help. At The Armada Group, we help both business and candidates by pairing together culture, skillsets, and viewpoint. We work with some of the fastest-growing businesses in the country, as well as the elite technical talent in the nation. Whether you’re looking for top talent or looking for the next step in your career, we can help. If you are looking for recruiting agencies in Santa Cruz, contact our team today.