Determining the rate for consultant work is not as simple as breaking down the annual salary for a permanent employee. If you are looking at hiring highly skilled temp-to-perm staff as part of your team, consider the following before you set an hourly or daily rate.
Accept that you’re paying a premium. The first step in determining the rate is accepting that you’re likely going to pay a premium for the work, particularly in high-demand areas like technology. As the employer, you determine both the contract length and the job security for your contractor. Therefore, skilled & available contractors demand a premium for this lack of control over their job security.
What is your end goal?Are you looking for a seasoned consultant who might consider taking on a permanent position? Or, is your goal to hire an employee who traditionally works permanent positions and is eager to make a temp job, permanent? Advertise your job in a way to attract the type of person that you are seeking. Their background may determine how you approach your rate strategy.
Evaluate your past success with temp-to-perm
employees. If you have used the temp-to-perm model before, take a
closer look at your process. How did it
work out? Were there any surprises during the conversion process? Self-evaluation
is a powerful tool to improve and streamline the contractor & temp-to-perm hiring
Consider the consultant’s added expenses. It’s easy to see your potential cost savings from contract employees in the form of expenses like health benefits or retirement contributions. But your savings are costs that a contractor will likely still need to cover during their tenure with your organization.
Acknowledge what the consultant is lacking. Beyond the added expenses that a consultant
will need to cover, it is also important to recognize that consultants will
lack benefits and perks that permanent employees enjoy; paid vacation days,
paid holidays, paid sick leave, employer contributions to retirement plans,
equity, bonuses, etc.
Your goal is to attract in-demand contract talent who can hit the ground running and solve your business needs now. Attracting this talent goes beyond an the hourly or daily rate. Experienced consultants who are experts in their fields are in high demand. Making a fair contract offer now will not only make the short-term contract look attractive in a competitive market, but it establishes a positive relationship if a permanent position is on the table after the contract.
October 21, 2019 – Boston, MA – Talener welcomes Paul Staffier to Talener Boston. Paul joins Talener with significant staffing and business development experience. A graduate of UMass Amherst, Paul has spent the last twenty years in the recruitment & staffing industries. His business development knowledge from working with high-growth firms and startups with be an asset to the Talener team.
Paul’s background includes time at Monster.com, H3 &
JobMagic where he excelled in account management, sales & business
development positions. Paul’s experience has led him to undertake a
collaborative approach to developing strong relationships with clients; working
on their behalf to find creative solutions to their business needs.
“I have worked with Paul in multiple industries over the course of his career,” says Boston Director of Business Development, Jed Pillion, “He brings a lot of experience to Talener and I am looking forward to partnering up with him again.”
As the Business Development Manager, Paul will work closely
with the team to nurture & foster business relationships within the Boston
metro. We are looking forward to having Paul’s entrepreneurial spirit and
drive at Talener.
Started in 2007, Talener is a technology staffing practice headquartered in New York City. Talener matches top tech talent with leading organizations across industries in Boston, Chicago, New York City, & San Francisco Metros.
The perfect employee isn’t always standing on your doorstep waiting to apply for your job. Or, the right fit for your company might be missing a few ideal skills. And sometimes, it isn’t about the employee at all. A project could terminate early or evolve into something that requires creating a permanent position. Business needs change and temp-to-perm employees solve an immediate talent shortage that organizations face– while providing the opportunity to keep a long-term employee.
Should you hire a temp-to-perm employee?
Consider the following.
You need talent, fast. You can expedite the interview and on-boarding process by bringing on contract talent quickly. You avoid the lengthy perm interview process as well as the possibility that the talent you want is scooped up by another company while you get through your standard interview process.
You want to try before you buy. Temp-to-perm gives both you and the employee the opportunity to see if the job is right for them. The prospect for a long-term position is available, but neither side is obligated to extend past the initial contract period. The contract portion of this model is defined and gives both parties an out.
Off boarding is easier. The contract has a clear end date that both the company and employee have agreed to. Off boarding a contractor is faster and doesn’t come with the potential morale dip that permanent employees may feel if they were to lose a colleague hired into a permanent position.
Initial feelings on long-term fit aren’t critical. You need to create an immediate, temporary solution to a business problem. You can hire someone with the right skills, even if you aren’t sure that they will be the right fit for a long-term position. This gives you both the opportunity to try out the relationship through the contract. You may be surprised about how well someone integrates into your team– especially if they didn’t initially feel like the right long-term hire.
Saving Equity. If you are looking to save equity that is typically offered to permanent employees, consider hiring a consultant and paying them a higher hourly rate.
The right culture fit. If you’ve found the right person to fit your position but they are light on a few skills that you’d ideally like in a permanent employee, this contract is an opportunity to see how they learn and develop their abilities. The right employee who is equally as talented and motivated to learn can be critical to sustained success.