In the latest edition of our Unlocking Success series we consider some of the clear benefits of working with short-term contracts as well as the increased use of SOW’s…
In today's business environment, organisations are reassessing traditional employment models and increasingly turning to short-term recruitment contracts to fulfil their talent requirements. These contracts have become a strategic solution, offering adaptability, scalability, and cost-effectiveness. In this discussion, we will delve into the concept of short-term contracts, why more organisations are opting for this arrangement, and the advantages it brings to businesses.
A lot of what we talk about here is fairly obvious, but with many of our readers invested in this way of working, it is useful to sometimes remind ourselves of the why as well as some of the real benefits for both clients and candidates.
Defining Short-term Recruitment Contracts:
Short-term recruitment contracts are employment agreements that entail engagements for specific projects, assignments, or predetermined durations. Often referred to as Interim, Contract or Temporary (we will stick to interim for this purpose), these contracts involve hiring individuals on a short-term basis to meet immediate staffing needs, allowing organisations to respond swiftly to changing demands without committing to long-term arrangements. Interim workers can be sourced through Employment Businesses, such as Malikshaw, or directly hired by the company.
Benefits of Short-term Recruitment Contracts:
Scalability and Agility:
Short-term, interim contracts provide organisations with the capability to scale their workforce up or down rapidly and efficiently. Businesses often encounter fluctuating demands or project-based requirements, and Interim contracts offer the flexibility to hire additional talent or reduce staff as needed. This agility enables organisations to optimise resource allocation, maintain operational efficiency, and respond effectively to market dynamics.
Cost Optimisation:
Utilising Interim workers allows organisations to optimise costs associated with talent acquisition and management. Rather than committing to full-time employees, organisations engage short-term workers for specific durations, aligning workforce costs with actual business needs. Interim contracts minimise fixed overheads, such as benefits and training expenses, while still providing access to a skilled workforce for key projects or peak periods.
Access to Specialist Skills:
Particularly in interim and contract roles, short-term recruitment contracts offer access to a diverse range of specialist skills and expertise. Organisations can engage Interim workers with niche capabilities, filling critical skill gaps for specific projects or assignments. This access to specialist talent enhances innovation, problem-solving, and overall organisational adaptability, ensuring organisations remain competitive and meet evolving industry demands.
Workforce Diversity and Inclusion:
Short-term recruitment contracts can also contribute to workforce diversity and inclusion within organisations. Embracing Interim work arrangements attracts a more diverse pool of talent, including individuals who may prefer or require Interim employment due to personal circumstances or career aspirations. This inclusivity fosters a culture of diversity and respect, leading to enhanced employee engagement, creativity, and a more vibrant work environment.
Talent Engagement and Retention:
One of the key benefits of short-term contracts is the ability to positively impact talent engagement and retention. In a dynamic job market, staff often seek flexibility, varied experiences, and the opportunity to work on different projects. By offering Interim contracts, organisations demonstrate their commitment to meeting the evolving needs and preferences of their workforce. This, in turn, enhances job satisfaction, fosters a sense of belonging, and increases the likelihood of retaining skilled individuals who value the Interim work arrangement.
Add into the mix: SOW
Statements of Work have more recently become a popular means of creating output driven work arrangements. Whilst SOW’s are not new, their significance has increased with the evolution of IR35 and the need for the worker to act under their own supervision, direction and control. The benefit for Interim workers is clear in that roles are often therefore outside IR35 and are more consistent with being brought in as a specialist who can use their own experience to determine how to deliver an assignment.
For organisations, SOWs should also mean increased assurance over deliverables, improved forecasting of contract costs and reduced risk of projects not delivering. Add into the mix the lower pay rates associated with outside IR35 roles (due to reduced employment costs) and there really can be a win for all parties.
Over the last 30 years or so, interim contracts have emerged as a strategic solution, allowing organisations to align their talent acquisition with dynamic business requirements. By embracing Interim contracts, companies can achieve scalability, cost optimisation, access to specialist skills, workforce diversity, and talent engagement. As the demand for adaptable staffing solutions continues to grow, more organisations recognise the value of Interim recruitment contracts in building agile and resilient organisations. Embracing Interim contracts enables businesses to navigate the evolving employment landscape effectively, attract top talent, and thrive in a competitive business environment.
Finally
If you are looking for your next role or to employ new talent into your organisation, we can help.
For more information on how we can help you become or recruit the high-performing individuals you need, get in touch with us on 0870 042 1430 or email us here.
Read our latest “Transformation Trailblazers” Newsletter in which we are talking change, transformation and technology - from the innovators and triumphant to the stagnant and struggling — Read it here.
Take a glance at Malikshaw’s experience of delivering Statements of Work. — Read it here.
Marta Ortigas is a Director at Malikshaw Interim & Executive, a leading interim management and executive search firm exclusively focused on helping organisations achieve transformational change through delivering high performance, diverse, impactful talent teams.
Transforming our client’s performance through exceptional talent…
+44 7715 905810
marta.ortigas@malikshaw.com
www.malikshaw.com
