BUSINESS INSIGHTS

 

Hiring Permanent Staff: Only Fools Rush in

 

With the economic forecast finally predicting sunshine, optimism is running high. Budget restraints have loosened and projects are getting green lighted. As a result, Cincinnati is going through a hiring boom.

 

While some companies attribute this to increased spending power, others may be acting out of fear of losing the best resources to the competition. In either case, there are important factors to consider before hiring permanent staff. We sat down with STAR BASE Senior Account Executive, Christy Rollyson to discuss the most important of these. 

 

Q: What hiring trends have you noticed this year? 

A: December is usually a slow time of year, but this year, we had such a boom. I think it was a combination of optimism and the fact that people had held on for so long. The simple fact for many is that things just cannot be put off anymore.

 

Q: What are some of the most important considerations in deciding to hire full-time staff?

A: Make sure you are not just hiring for headcount purposes. Companies are going on hiring sprees because they've been starved for so long. Make sure you really need that headcount. Does the project truly require a permanent staffer? Be conscientious in your decisions.

 

Q: Does hiring full-time staff instead of consultants always save organizations money?

A: Many companies believe that there is a tremendous markup with consultants that makes them cost-prohibitive. However, the profit margin at consultant firms isn't like it used to be, so it may actually be the more economical choice.

 

Here's what you want to think about: If you have short-term projects, something that's going to go away in time, or a skill set that's only temporarily needed, you will ultimately save money by going with a consultant.

 

Q: Is it a mistake to assume that the best consultants, or even the majority of them, would rather be working in permanent positions?

A: Absolutely. The draws that have traditionally been associated with permanent jobs — stability, loyalty, 401K, benefits — aren't really there anymore. Conversely, many consultants are now able to find them through recruiting companies, so the playing field has really been leveled in that respect.

 

Also, keep in mind that one of the big drivers for IT professionals is the opportunity to expand their skill set. Many of them choose to stay independent, so they have variety in their duties. Especially now that we are moving out of the recession, significant opportunities are cropping up for consultants.

 

There is a misconception that because of the upheaval in the economy, everyone wants a permanent job. In many cases, the opposite is true. This recessionary period has made a lot of people realize that there's no such thing as permanency, which has inspired them to seek out the rewards of consultancy — higher compensation and variety of work.

 

To discuss the pros and cons of permanent vs. contract staff, contact us at 513.245.0400.