Four hidden challenges when direct hiring contractors

3 mins read
Employer agency recruitment contracting interim staff recruitment challenges

As a recruiter, I am aware of a popular misconception in today’s market that sourcing interim staff directly can reduce employment costs. Before you dive into the unknown and attempt to hire direct, you might like to consider the following potential stumbling blocks.

How will you find the best candidate? Sourcing contractors to tackle projects that are complex in nature is not an easy task when specialist skills and experience are needed. This is where a professional recruiter can be your saviour. As a contracting expert, I’m continually on the hunt for candidates who possess in-demand skill sets. This means I’m in the best possible position to respond quickly when my clients call. By giving you access to a wider range of contractors who are experts in their field, I remove the guess work from hiring the ‘best available’ candidate.

OK, so you’ve invested in a contractor. Now of course you want them to last the distance and get the job done. Only last week I interviewed a candidate (not previously placed by Madison, by the way!) who was only four months into a one year assignment but already looking for a new opportunity. Now I believe this scenario is completely avoidable! By applying good old fashioned communication, it’s possible to avoid this unfortunate outcome. We all know the first few months in a new role can be unsettling. I find that staying in touch with my contractors until they find their feet really works, and because of my hands-on approach I am able to anticipate and divert any issues. Hiring via Madison means you have a hassle free relationship with your contractor, leaving you to focus on your business and not be tied down with managing performance or behaviour.

What about entitlements? Here’s an important question to ask yourself: is your contractor a genuine contractor or are they an employee? You can’t afford to get this wrong. In the case that the employment relationship is unclear, it’s possible to be landed with a raft of employee entitlements to pay out, or even charged a penalty which could be costly and harmful to your business. The great news is that hiring through Madison means removing all the stress – and risk –  for you.

Lastly and often overlooked: insurance. This is something a contractor cannot go without! Having their own professional indemnity and public liability is a mandatory requirement for our contractors. How many contractors will tell you it’s not necessary? The nightmare of a liability claim can be costly to your business and will likely leave a sour taste in your mouth.

Hopefully your business hasn’t experienced any of the problems I’ve mentioned, or been put off using interim talent again. Contractors can be an amazing resource, it’s simply important to recognise the true costs of hiring directly. As experts in the provision of interim contractors, not only will Madison respond quickly to your request, but we only present specialist contractors with the expertise to hit the ground running for you to interview. All you need to do is decide which one to hire, and we manage the rest for the duration of the engagement. Done and dusted in no time at all, and all risks removed.

If you’re considering hiring interim staff, please give us a call; we have contracting specialists in Auckland, Wellington and Christchurch. Further details and contact information can be found here:

Jayne Glenister
Principal Consultant

A bit about me I began my career in Recruitment in the mid 90’s whilst seeking a career change following long stints in accountancy and hospitality. Landing a role in a recruitment agency…

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