In today’s job market, there are 57.3 million contractors working for various organizations across the country and 13% of that group are technology contractors. Gig economy workers are estimated to account for 34% of the workforce and according to a study conducted by software company Intuit, the number of contingent workers are expected to rise to 43% by the year 2020. The reason for growing number of contractors is that individuals and organizations alike are recognizing the benefits of the contracting arrangement. For technology teams, tech contractors open the doors to a wider pool of the market’s best talent, decrease employee costs, provide niche skills and help organizations keep up with the latest technical demands and innovations. Let’s dig a little deeper into some of these benefits.
Expanded Talent Pool
In a recent survey with conducted among 1000 recruiters, nearly 90% said that they find it challenging to find and hire technical talent that best suits their criteria. Tech unemployment is 2.5% and the competition to find the type of tech talent organizations need is fiercer than ever. Considering technology contractors make up 13% of today’s contract professionals, expanding an organization’s talent search to include tech contractors dramatically widens their tech talent pool by over 7 million tech professionals.
One of the major benefits of hiring gig economy workers is that they are more budget-friendly. Tech contract workers enable organizations to easily scale their workforce according to business needs. One of the most challenging things faced by hiring managers is to request for more technology talent. Whether the budget is allocated for new hiring or not depends on the influx of tech projects or the size of an upcoming project. Tech contractors have proven to be incredibly useful resources when project budgets are too limited to hire a full-time worker or when teams need a specific tech professional to complete a certain project. Tech contractors can be project-based, short-term, long-term or even temporary-to-hire. With contractors, organizations do not need to pay payroll taxes, worker’s compensation, insurance, unemployment costs or turnover costs. When comparing the cost of a full-time employee to a contractor, an employee hired on contractual basis could save a substantial amount of money for the organizations’ bottom line. Some organizations often hire tech talents on a contractual basis to assess their skills, cultural fit, professionalism, etc. before making the financial commitment to hire them as a full-time employee.
Updated Skill Set
Many tech contractors have a particular skill set and organizations hire contractors for projects where specific skills are needed. Since tech contractors are constantly working on new projects at different organizations, they are able to develop their skillsets to a large extent without taking any extra effort. As a result, organizations are keener on having cutting-edge tech resources that bring new perspectives to projects. When organizations hire contract based employees who excel in specific skillsets, they save time (and money) on trying to train current employees to learn additional skills in order to complete a project.
Adaptive to the Market’s Tech Demands
When organizations bring gig economy workers on their tech team, they immediately expand their capabilities, firm’s services, and solution’s bandwidth. Having the right technical capabilities at your organization’s disposal is critical for keeping up with the latest tech trends and driving innovation in your organization. Teams with a combination of employees skilled in old technologies (cloud, security) and new technologies (artificial intelligence, machine learning) are creating new initiatives that are breathing new life into the tech industry.
Adding contractors to tech teams presents minimal risk, with large rewards. At Intelliswift, we work with companies to provide them with top tech talent. Click here to get in touch with us to learn how you can get started hiring tech contractors.