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Why IT Contracting is the Post-Covid Employment Solution


Hiring new talent is one of the most important decisions a business can make. But with so many Lockdown-effected workdays and interrupted projects this year, many businesses are looking for more flexible and cost-effective hiring solutions.

So, should you employ? Or is hiring contractors better for business? 

Here’s our three top reasons why contracting is good for both Tech Employers and IT Professionals 


Three Reasons Why Contracting is Good for Tech Employers


  1. Contractors Can Be Cheaper

If you’re just looking at the hourly rate, you’ll be thinking that Contractors cost more… But think again. With a contractor, you’ll pay more per hour, but you only pay for the hours they work. You won’t pay them holiday pay, sick pay or KiwiSaver payments and they don’t require expensive training or up-skilling. Also, contractors usually work with their own equipment. They usually have their own licenses and certifications and they’re used to working remotely if you don’t have the office space or furniture


  1. Faster and More Flexible

When you’re up against a deadline or you’re short of talent, there’s nothing worse than sifting through a pile of CVs and interviewing candidates. 

Whether it’s for the loss of a key employee, maternity leave cover, or for a particular skillset, a contractor can set your business free. It means you don’t have to settle for an all-rounder when specific skills are what you need. Plus, you can usually get tech contractors onboarded much faster than full-time talent without the worry of making a bad hire. Let’s get this Project started!


  1. A Fresh Pair of Eyes

We all know that the cost of a bad hire can be huge. So, utilising multiple contractors can be a brilliant way to evaluate the skillsets needed for a full-time role before you make an employment commitment.

Also, with broad experience in multiple roles and business formats, contractors can bring fresh eyes to your business challenges, helping you discover solutions you hadn’t previously considered. 


Three Reasons Why Contracting is Good for IT Professionals


  1. Bigger Paychecks

Everyone wants higher earning potential, so here’s your chance! Contractor take-home pay can be more than double the compensation offered to a full-time employee. For example, a contract software engineer at a tech company can earn around $180K+ annually, while a full-time equivalent in the same company may earn only $110K. You won’t receive Holiday Pay or Kiwisaver benefits, but you can deduct your expenses and equipment costs, so ultimately, that means more in your pocket. 


  1. More Freedom

Contractors usually have more freedom than full-time employees, choosing where they work – from the office or home, or the local café – and in many cases, what hours they work also. Not being tied to an employer also gives you the opportunity to work on different projects for different businesses on short or part-time contracts as you desire. Take holidays when it suits you or work harder and earn even more. The choice is yours!


  1. Exciting Work with Varied Clients

Work is usually a lot more varied for a contractor than for those working in a permanent job. It’s also a great way to boost your career in IT. If you’re interested in working within a particular company or industry, you can take on the contract with the knowledge that it’s not forever. This is ideal for those who enjoy coming in and hitting the ground running to deliver projects under tight deadlines rather than boring, business-as-usual work. 



In summary, IT contracting is a win/win for both the company and the contractor. Like everything, there are pros and cons and there are tricks to getting it right, so it’s worth discussing the options with us at IT Job Search before you get too far down the track.

With 15 years in the business, we have the experience to advise on the ideal contractor solution, as well as industry-leading time-sheeting and payroll solutions to make the system even easier. Check us out at https://www.itjobsearch.co.nz/