Fixed term employees vs contractors
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Thursday, 12 November, 2009 | Tagged in Business | Written by Crackerjacks
Whether you’re faced with a permanent staffing vacancy, need to cover a period of leave or are recruiting specialist skills for an urgent project, it’s important to know that you have options available for hiring contingent professionals to get through.
Fixed term employees and professional contractors are often used in organisations for fixed periods of time.
A Fixed term employee is employed for a specific duration and purpose. The employer and employee enter into a fixed term employment agreement in which the end-date is specified and the employee is placed on yourpayroll. Fixed term employees are generally paid the same rate as permanent staff, with the additional benefits such as annual leave, sick leave and superannuation packaged in their remuneration.
A professional contractor is self employed; this means they’re not employed by you or included on your payroll. Their services can be engaged for any duration. Because contractors have to cover their own sick leave, annual leave, and superannuation etc. they usually will charge a higher hourly rate than what permanent staff are paid. Click here to find out how contractor’s can work out their fees.
Both of these types of contingent staff are present in the organisation for capped periods of time and should be managed differently to permanent staff. Click here for some tips on managing a contingent workforce.
Different organisations have preferences for the type of contingent staff they use. We’ve noticed that the public sector prefers the use of fixed term-employees, as opposed to professional contractors. To control costs, this is a favourable option, because fixed term employees are usually remunerated at a lower rate than contractors. Hiring fixed term employees enables HR and Line managers to lower their long-term staffing overheads, while still havingthe right skills in the organisation when they need them.
On the flipside a number of private companies opt to hire professional contractors. The advantages of this include; minimal paperwork for the company to administer, instant access to expertise for short-term and long-term projects and an objective opinion to improve business processes. By having a self-employed professional on hand, project-work and staffing vacancies can be covered with minimum interruption .
Whether it’s fixed term employees or professional contractors, Crackerjacks can help your business source quality candidates. You can access your Crackerjacks talent pool of over 3,600 candidates anywhere and at anytime, ensuring a fast response to your businesses contingent staffing needs.
You can register, post jobs, search for candidates, create email talent-alerts, interview and review reference checks ALL for free. You only incur a fixed monthly fee once you engage a candidate – $500 per month for full-time and $250 for part-time and these fees are capped at 12 months.
So what are you waiting for – register now, or if you are already a business member log on to see the new talent on Crackerjacks today.
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