How to Hire an Interim Contractor

Interim contractors are experiencing healthy demand in the engineering and manufacturing sectors right now. As a rich source of specialised skills, contractors can help companies save time and money while offering much-needed flexibility.

Hiring interim contractors is also a useful workaround for seasonal challenges and budgetary constraints. As we reach the holiday season, potential candidates might be less willing to seek a new role. The end of the financial year can also make life harder for Hiring Managers, as constrained budgets place a dampener on recruiting and headcount allowances.

Adding interim contractors to your team can help you go the distance on critical projects or manage a sudden uptick in workload. In this blog, we’ll highlight the key benefits of engaging interim contractors, how to manage them and the best approaches for recruiting them.

The Benefits of Interim Contractors

In a competitive hiring market for engineering talent, more organisations are using contractors for their ability to augment the permanent workforce.

1. Manage Expenses

Contractors have long been used as a solution for managing payroll costs. Whilst daily rates can sound high, using a contractor removes the legal obligation to pay for leave entitlement or hefty bonuses, and you can significantly reduce annual headcount expenses.

2. Save Time

Engineering and manufacturing recruitment is a resource-intensive undertaking in the UK. With the ongoing skills shortage in engineering disciplines, the time it takes to fill permanent engineering jobs can get quite lengthy and expensive. Hiring interim contractors can cut weeks or even months from the time it takes to fill an engineering vacancy.

3. Harness Industry Expertise Quickly

As interim contractors are typically hired on the proviso of their specialist skills and experience, less time is required to train them. They can hit the ground running with less onboarding time than a permanent employee. Contractors are exposed to a variety of work environments, so they can bring unique knowledge, more objectivity and a fresh perspective to projects.

4. Business Agility and Flexibility

Using interim contractors gives companies greater ability to scale projects and operations up or down. Hiring processes for contractors are considerably faster than those for permanent employees. With the right resources in place, you can build out your existing team or create one from scratch with little notice.

Options for Engaging Contractors

In the UK, employers have several options for engaging interim contractors, depending on the IR35 status of the assignment. Each option carries specific legal rights and responsibilities, along with income tax and National Insurance obligations. It’s important to get advice before engaging a contractor to determine your compliance requirements.

PAYE

In this scenario, a contractor is employed directly by the recruitment agency. For example, an agency manages the contractor’s payroll administration, tax deductions and NI contributions on behalf of the employer.

Personal Service Company (Ltd)

Assignments that fall outside of IR35 allow contractors to provide their services through a Limited Company, as they are deemed self-employed for tax purposes.

Umbrella Company

Contractors can be employed by a third party that pays them directly (including holiday pay) and makes all necessary tax deductions.

How to Recruit Interim Contractors

Engineering contractors are at the top of their professional game, so it pays to portray your company and the role as an attractive choice. Key selling points to highlight in any advert or job description should include competitive pay rates and the interesting or challenging nature of the role.

Contractors tend to have a wealth of job assignments to choose from, making speed a critical part of contractor hiring. If your recruitment process takes weeks, you might risk losing contractors to other opportunities.

Hiring interim contractors is easier with expert help. Enlisting a UK recruitment agency can help you skip both the administrative burden and the time investment needed to find and interview people.

All good agencies have a raft of qualified professionals on their books, many of whom have been placed on assignments previously. When you contact an agency in search of a particular skill set, they will usually have at least a couple of people they can immediately recommend. We suggest choosing a recruitment partner who has a specialist understanding of your industry and who is connected with both passive and active candidates.

Managing a Contractor Workforce

To get the most out of contractors, be as clear as you can about your workplace policies, project scope and business objectives from the outset. For managers, it’s wise to be visible and check in regularly with your contractors to prevent information silos from emerging.
While it is important to give contractors all the tools they need to do the job, be aware of any potential risks relating to sensitive information they might need access to. Enforcing policies for data protection and using Confidentiality Agreements can help you manage risks around intellectual property and client information.

Summary

Hiring interim contractors is a great idea for businesses that need specialised skills, want to save time and money or need more flexibility in their staffing decisions.

As professionals with strong experience and proven passion for their work, interim contractors can make a valuable contribution to your company ¬ including the bottom line.
Engaging the services of a UK recruitment agency can help you quickly find excellent contractors and eliminate guesswork around compliance.

Here at CV Consulting, our team of engineering and manufacturing recruitment specialists enables employers to find top-tier contractors for their business needs. today to make your next interim hire.