Contracting has increasingly been seen by businesses as a cost effective and flexible alternative to permanent and outsourcing options.
There are two options when considering contractors:
- Fixed term contracts – salaried employees for longer term projects
- Day rate contracts – day rate consultants for flexible projects and ad hoc work
This table shows the conversions between permanent and day rate positions.
|Job||Permanent (£)||Day rate contractor (£ per day)|
|Head of Marketing||70-110,000||500-800|
Below are testimonials from a client and a contractor who demonstrate the benefits of contracting.
Marketing Manager – retail bank
“Contractors play an important role, and help us to continue to deliver in times of team absence or immense workload pressures. I've always been impressed with the attitude of professional contractors – the ones that succeed are experienced and have a high level of integrity to their work. It's important to me that contractors feel part of the team, so I treat them like one. With the right person it can be really motivating for the team – we get a fresh team member to work with and they can see management taking steps to keep workload balanced across the team. As they can often be quite experienced, this can be inspiring to less experienced members of the team.
In terms of cost effectiveness, I believe you get what you pay for and, having been a contractor myself, I understand the risks involved for the individual and the extras they need... but I'm not sure that all managers do.”
Consultant – venture capital firm
"Contracting for me has a multitude of benefits. Generally you have one or many finite projects to work on so it enables you to focus very clearly on measurable outcomes. I also find that the limited tenure forces introductions at a much faster pace than in a permanent position as things often need to be achieved quickly. It's perfect for me as it's a great opportunity to gain exposure to different businesses and their cultures and often leads to longer term opportunities."