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contract workers

4 Ways Contract Workers Can Help Your Start-up Thrive

contract workers

One of the key considerations for a budding entrepreneur must be the people he or she wants to bring on the journey with them. Global trends in employee engagement practices could provide just the solution to suit a start-up environment.

 

At present it is estimated that 20-30% of the American workforce is comprised of temporary and contract workers.  Some analysts predict that this figure will rise as high as 50% in coming years. While European norms may not exactly reflect the situation in the US it is reasonable to say that these trends tend to follow similar paths either side of the Atlantic. Ireland’s reliance on US Foreign Direct Investment means that US trends tend to be replicated more acutely here.

 

In the context of a start-up looking for talent there are a number of reasons why they may benefit from choosing a Temporary or Contract employee, namely:

 

1. Reduced overheads

If engaging a person on a full time basis there are associated employment costs of carrying this headcount on an on-going basis e.g. employers PRSI. As finances may be tight in the early stages of a fledgling venture the burden of these recurring costs may be problematical.

 

2. Flexible engagement model

Many hiring requirements nowadays are project based i.e. there is a need for example to develop a specific piece of code,  produce a particular piece of marketing collateral etc. Instead of the burden of carrying the full-time cost for these resources the start up could engage people on a project and time-specific basis and discontinue their services on completion.

 

3. Flexibility to scale

A further advantage is the ability to scale up and down quickly. The process of hiring people on a permanent basis is generally a more elongated process. The beauty of the contingent model is that many ‘career contractors’ are available on shorter notice periods and as they are being engaged for specific purpose work there is less of an onus on exploring the cultural fit and motivational fit than there would while hiring a permanent staff member. In many ways the key aspect is the competency fit and this can be assessed quite swiftly.

 

4. Best practice benefits

Career contractors by their very nature move from business to business quite often and in many cases they are compelled to keep up to date with the latest industry training so as to justify premium rates. The advantage to the entrepreneur can be twofold; firstly these resources often deliver projects in a shorter timeframe due to superior knowledge and secondly there is the retained benefit of knowledge transfer to any retained permanent staff.

 

The changing nature of how we hire people has resulted in a workforce that is much more comfortable with having a ’portfolio’ career and eschewing the values of the ‘job for life’ that previous generations aspired to. While companies will want to retain intellectual property and know-how in its permanent headcount, there is mounting evidence that we require a flexible, scalable and contingent workforce to adapt to challenges and opportunities in today’s marketplace. This model could be exactly what the next start-up needs in order to thrive.

 

 

Posted by Recruitment Consultant, Sigmar on 7 December 2017

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Irish jobs market reaches 20-year high, as office re-entry drives unprecedented levels of recruitment activity

Irish jobs market reaches 20-year high, as office re-entry drives unprecedented levels of recruitment activity

Sigmar Recruitment today reports a record high number of job placements over April, May, and June 2021. The number of placements during this period is higher than any other quarter in the recruitment company’s 20-year history. Current figures are up 6% on the previous record set in 2019 before the pandemic. As one of the largest recruiters in Ireland, Sigmar has offices across the country and is present in all professional sectors. The first half of the year saw strong, consistent growth with job placements breaking all records in the month of May, with June accounting for the second-highest month ever. Commenting on the rebound of the labour market, Sigmar founding Director, Robert Mac Giolla Phádraig says: “The jobs market in Ireland has never been stronger or more buoyant than it currently is. We’re seeing several macro trends converge all at once, which is creating significant churn in the market. Remote working has literally opened up a world of new opportunities no longer bound by location. This is coupled with a rising tide of consumer confidence, as many professionals find themselves in a stronger financial position than before the pandemic. “The last 18 months has asked big questions of us all, and the humdrum of lockdown has created a desire for change which is now resulting in unprecedented numbers of people moving jobs. Employee loyalty is increasingly under question, with remote work being less enjoyable, many workers are now committed to the experience of work over the employer, adding further to the current levels of churn.” IT accounted for one-third of all job placements throughout the quarter, followed in order by Financial Services, Sales & Marketing, Accountancy, Life Science & Manufacturing, Office Support, Public Sector, Construction, Professional Services. Business confidence has also grown steadily over the course of the year, as vaccination gathered momentum. The “low-touch economy” is booming is sectors such as e-commerce, digital, and logistics. Says Mac Giolla Phádraig: “The resurgence of permanent recruitment is somewhat unique to how we’ve rebounded from previous downturns, where we typically saw flexible work return quicker.” Although the vast majority of job placement in Q2 were understandably remote, Sigmar reports that the tide is beginning to change with the majority of employers now committing to hybrid work over the coming three months. Mac Giolla Phádraig advises: “As we now choose our workplaces, at a time when the power dynamic has shifted to the employee, employers need to ensure adequate work practices to reconnect the workforce with the workplace equitably. There is an inherent risk that new workforce inequities may emerge, such as “proximity bias”, where those closest to the centre of influence get greater recognition and therefore promotion opportunities as opposed to remote workers. When it comes to individual contribution the opposite could be argued that remote workers get the benefit of having less in-office distractions and their output is therefore greater.” Mac Giolla Phádraig likens remote work to long-distance relationships, which in many cases don’t work out. “We’ve gone from “living” with our employees in an office environment to long-distance relationships, which often sees commitment recede over time. The context of location also opens up new experiences and possibilities, which are now being explored on a scale never before seen.” He adds, “if we thought the war for talent was tough, just wait for the battle of attrition. It’s now emerging as the number one challenge for businesses across the globe.”