Hiring the right IT staff takes time and consideration. Whether you are scaling quickly, filling a short term skill gap or building a permanent team, the choice you take will impact your budget and results. There are two options available, contract and permanent IT recruitment. Each has its strengths and the best choice depends on what your business needs now.
What Is Contract IT Recruitment?
Contract roles bring in specialists for a set period and generally deliver a project, cover a vacancy or provide expertise your permanent team doesn't have. Contracts can run from a few weeks to 12 months or more and contractors tend to work through their own limited company or an agency.
This type of recruitment suits businesses that need to:
- Respond quickly to a new project or high demand
- Access certain tech skills without long term commitment
- Manage headcount costs flexibly across financial periods
- Trial a candidate before making a permanent offer
The only downside is cost per day. Contractors charge higher day rates compared with equivalent permanent salaries and there is IR35 compliance to meet in the UK.
What Is Permanent IT Recruitment?
Permanent staff members become a part of your organisation. They take a salary, receive benefits and tend to grow with the business over time. For roles that sit at the centre of your IT function, for example, a lead developer, a security analyst or a systems architect, permanent positions usually make more sense.
Permanent recruitment can take longer. Sourcing, interviewing and onboarding a strong candidate can take several weeks, even months. But when you get it right your firm will benefit from continuity, company knowledge and staff invested in the outcome.
Key Differences – Contract vs Permanent
- Speed To Hire: Contract – Fast, Permanent – Slower
- Cost Model: Contract - Day Rate, Permanent - Annual Salary & Benefits
- Flexibility: Contract – High, Permanent – Lower
- Skills Depth: Contract - Specialist/Niche, Permanent - Broad + Long Term
- Team Integration: Contract – Limited, Permanent - Full
How To Decide What's Right
A few practical questions tend to help companies make a decision quickly between hiring contracting or permanent staff.
Firstly, ask yourself whether this is a time limited piece of work. If there is a clear end date in a project such as a platform migration, compliance deadline or product launch, a contractor may be a more efficient choice.
The next question to ask is if you need someone rooted in your company culture? If the role has contact with leadership, clients or long term strategic direction, a permanent role is likely a better fit. Also, consider your budget. Contractor costs are expensive in the short term but are temporary. Permanent hires however have ongoing salary, NI contributions, pensions and benefits, so there is a need to weigh the total cost of employment, not just the upfront figure.
Some businesses have a blended model which includes a core permanent team supported by contractors in peak demand. It's an approach that gives you stability without going over your headcount budget.
Getting A Good Balance
There's no right answer across the board but there is a right answer for your business at this current time. At Apache Associates we work with UK companies to find strong IT professionals in contract and permanent positions by matching the right person to the right role, not just filling a vacancy. If you’d like support with IT recruitment at your company, get in touch with us to book an appointment to discuss your needs.