As we recently covered, a “perfect storm” of a coming recession is currently brewing. The elements include rising interest rates, inflation and a slowing housing market. Nothing’s for certain, but in volatile times, you may be wondering how to sustain a strong workforce while you protect your bottom line.

One available option is to hire contract or contract-to-hire employees. While full-time staff members require more resources to train, onboard and retain, contract and contract-to-hire workers can enable your business to be agile amid changing markets. Here’s what to consider.

What Are the Differences Between Contract and Contract-to-Hire Staff?

You can learn all about what defines a contract or contract-to-hire employee in our recent whitepaper. To break it down, these roles are defined as:

• Contract staff: Contract employees are hired to work for an agreed-upon, short period of time, generally ranging from 3 months to 2 years. . These employees are hired to work on specific projects, support full-time staff who aren’t able to keep up with work demand and support delayed hiring for full-time positions that budgets are not solidified
• Contract-to-hire staff: Contract-to-hire roles are created to bring on employees temporarily, with the intent to evaluate the worker at the end of their contract to determine if they’re worthy of being hired full-time. Think of contract-to-hire roles like professional auditions. You can analyze the employee to make sure their skills meet the role demands and confirm they’re a culture fit for your business.

First: What Is Contract Work?

You’ve likely heard of the term “independent contractor” the past couple years, as the freelancing industry has rapidly increased, especially post-COVID-19. Another type of contract work is that of a short-term, contract role, which may or may not be in a contract-to-hire capacity.

Contract roles typically last several months up to a year or more. The employee agrees to a timeline expecting to work in that positiondetermined by the employer. In a contract-to-hire role, there’s an expectation that once the initial timeline is completed with satisfactory or excpeitonal work the worker will be evaluated to be brought on in a direct hire, full-time position.

In 2020, there were around 13.6 million people working in contract positions and contract-to-hire roles, according to Statista. As employers adjust to recent issues like the Great Resignation (what we call the Great Reassessment) and a looming recession, many are offering contract and contract-to-hire roles to diversify their employee offerings and attract talent to their companies.

How You Can Use Contract Work to Explore Your Professional Options

Changing jobs, and even careers, throughout a lifetime is common. In 2021, the U.S. Bureau of Labor Statistics reported on a longitudinal study that found 

late Baby Boomers held an average of 12.4 jobs from the ages of 18 to 54. Switching jobs is increasingly popular for younger generations, such as Gen Z and Millennials, whom Gallup calls “the job-hopping generation”.

If you’re disengaged at work, or you simply think you’d be more fulfilled in a different role or work environment, consider contract roles. These may be open to candidates who come from different industries because they may be created to:

• Support full-time staff in busy times
• Fill expertise gaps that match your skill set
• Test out new talent before committing

Consider the most in-demand transferable skills today. If you possess any of the following skills, you may have something valuable to offer a company who has an open contract role in a different industry.

As contractors help you win new business or achieve company objectives, you can scale contract work by adding new positions or by creating permanent roles for stand-out contractors.

How to Decide Whether a Contract or a Contract-to-Hire Is Right for Your Company

Contract and contract-to-hire roles may be an ideal solution for your business in an uncertain market. They can help with unexpected workload fluctuations. They typically don’t require as much training and onboarding time as a full-time employee. You have a clear understanding of how long they’ll be with your company. Once the contract ends, you can regroup and pivot.

There are also some pitfalls to be aware of with contract and contract-to-hire employees. Since they’re not permanent staff, they may not provide the same level of dedication or effort as your full-time workers. In a contract role, these professionals may be on the hunt for their next position, so you’ll need to put in extra effort to retain their talent if you choose to do so.

In uncertain markets, diversifying your workforce with contract and contract-to-hire roles could benefit your company. If you’re interested in exploring these options, contact AccruePartners. We can help guide you through the hiring process to ensure your business has the exact support it needs to navigate any market conditions.