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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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Resignations Surge in September as Offices Re-open

Resignations Surge in September as Offices Re-open

Main Points Q3 record breaking recruitment placement results Highest in 20 years, peaking in September Up 44% for same period in 2020 Job orders in the first half of October are trending higher than any previous single month in company 20-year history The Talent Shortage Economy: Recruitment (for on-site labour and remote skills) is the single biggest threat to the Irish economy War for talent now being fought on two fronts: Battle for Retention internally and the Skills Struggle externally    “The Great Return is causing a Mass Exodus. The reopening of offices in September has prompted a new surge in resignations as Ireland now faces a Talent Crisis. Employers are increasingly requesting in-office presence and Employees are voting with their feet..” says Robert Mac Giolla Phádraig, founding director Sigmar Recruitment:   Sigmar Recruitment today reports a record high number of job placements for Q3 (July, August, September) 2021, up 44% on the same period 2020. The figures released today top previous results recorded in Q2, 2021, with September recording the best single month ever in the 20-year history of Sigmar. Job orders in the first two weeks in October are trending higher than any single full month in the company’s 20-year history.   The first half of the year saw strong, consistent growth with job placements, peaking initially in May. Summer months remained as strong, peaking once more in September. Robert Mac Giolla Phádraig, founding director of Sigmar believes that the request to return to the office in September has caused employees to revolt, as they do not wish to return to pre-pandemic conditions and practices..   Commenting on the tightening of the labour market, Mac Giolla Phádraig says: “Demand for talent has remained at an all-time high for the second quarter in our 20-year history. It was somewhat unusual not to see demand abate over the summer months. Indeed, demand continued to increase over the summer, resulting in September’s record results. The rate of job requests  in the first two weeks of October is unprecedented, indicating continued in Q4 and raises the question of the sustainability of talent supply.   “Remote working has literally opened up a world of new opportunity no longer bound by location which is creating significant churn in the professional skills market. This last 18 months has seen employees demand greater flexibility. The request to return to the office by employers in September has prompted employees to reconsider whether they recommit or resign. Many are resigning.”   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 opened up new experiences and possibilities on a scale never before seen. In September, many employers have asked employees to “trial” living together once more, which in some cases leads to a reunion or in others to separation.   "Another factor, on the employee side is that of identity and how what we do makes up part of who we are as individuals. “This last 18 months has asked big questions of us all, mainly how our working lives interact with our lives and how we identify with our working lives. In the absence of a workplace we’ve reassessed the balance between who we are and what we do, resulting in lesser commitment to our working selves and therefore to our employers. Employee loyalty has therefore become increasingly under question with many workers are now committed to the experience of work over the employer, adding further to the current levels of churn.”     Talent Shortage Economy Recruitment for both the on-site and remote talent remains the single largest threat to the Irish economy. Says Mac Giolla Phádraig: ”We are seeing two macro trends converge at once, compounding demand for talent across all sectors – (1) supply of labour and (2)shortage of skills.”   The “high touch economy” for on-site labour in sectors such as construction, logistics, retail and hospitality are currently experiencing severe labour shortages. The disruption to international talent supply chains have caused significant bottlenecks to the supply of labour,  particularly effecting on-site, lower skilled jobs. On-going travel restrictions and pace vaccine rollout continue to impede immigration globally, but as an island nation we are now seeing the impact of this as demand recovers at pace.   The “low-touch economy”, on the other hand, where remote work is viable is experiencing greater churn due to the expansion of opportunity for skilled workers, shift in motivation, identity and desire for flexibility. This is now being experienced more acutely in Ireland as offices re-open and employees now vote with their feet, in choosing to resign over reengaging with employers in many cases. Demand has been particularly strong in IT, Financial Services and Life Sciences.    He adds: “If we thought the war for talent was tough, just wait for the battle of attrition. Retaining workers rather than attracting them is now emerging as the number one challenge for businesses across the globe.”