why do companies hire contractors?
International organisations hire a blend of contractors and permanent employees to remain agile and stay competitive. Professional contract employees are typically brought in for their expertise for a temporary period of time, usually to work on short-term projects or to fill in for employees who are on maternity or sabbatical leave.
Contracting talent are particularly in demand within start-ups and SMEs (small-and-medium enterprise) as they often have HR budget constraints, but need an extra pair of hands to manage the temporary increase in business demands or unique client requests.
new demand for professional talent with specialised skills
In Singapore, companies are most likely to hire contract workers to manage business restructuring, and such transformation projects require niche and specific skills from a small group of talent. Instead of engaging an external company to provide consultation services or to develop new processes, companies typically hire contract professionals who have had prior experience from these companies to work on these projects.
Managing finances and risk are not the only benefits that come from contracting. Hiring freelance workers allows companies to bring new and different perspectives into the workplace on a more regular basis. In addition, the flexibility of contracting allows managers to discover candidates with different skill sets that they might not have considered if the role were permanent.
contracting outlook in Singapore
The gig economy was initially made popular by technology firms, which hired contracting specialists with the niche expertise to design, develop and implement proprietary software. However, as more companies across key industries embark on their own digital transformation journey, the talent demand for contractors began to rise in recent years.
Contracting, or gig economy, is fast becoming a hot trend in Singapore. A blended workforce is an extremely attractive HR strategy as it not only provides companies with the flexibility to shape their team, it also helps deepen internal capabilities to address increasing and changing customer demands.
5 bullet points on key facts included in the whitepaper
- Why do companies hire contractors?
- Who are the talent in the gig workforce?
- Which industries are driving the demand for contractors?
- What kind of skills sets are most in demand for contractors?
- What are the key advantages of a blended workforce?