In recent years, contract employment has become an increasingly popular option within the Irish market, partially due to the influence of the many multinational companies who are now headquartered in Ireland. This trend is particularly pronounced among IT professionals who have lots of opportunities to choose from in their industry. Flexibility, tax advantages and lucrative daily rates are some of the benefits for contractors. But what about the benefits for employers? Do they cost a fortune for companies?
According to Gerard Doyle, Managing Director of Recruiters.ie, hiring a contractor can be a very cost efficient way to hire. You can take on a contractor to complete an urgent project on a short term basis that won’t necessarily require a permanent, long term employee. Once a daily rate is agreed, there are no other hidden costs such as Training, Induction, sick leave, PRSI, holiday entitlements or pension contributions. “Contractors are highly skilled professionals searching for a better salary and flexibility in working hours and holidays. From the company point of view there is less paper work, risk and commitment involved.” stated Doyle, who is running a busy contractor and temp division desk at his office in central Dublin.
Around 40% of all the vacancies offered to candidates nowadays at Recruiters.ie are for contract or temporary positions. This number has increased in the last few years due to the growth of the tech industry in Ireland which has doubled since the 1990s. Recent researches has discovered that 95% of the IT professionals in Ireland are employed.
So….contractor or employee?
Advantages of hiring a contractor: Apart from flexibility, contractors are often available to work at short notice which helps employers to meet business demand quickly. Although daily rates can appear expensive compared to full time employees, companies will save on benefits and compulsory taxes as such employers PRSI.
Disadvantages of Using a Contractor: The company may lose some control over how tasks are performed. As a hired gun, hired for one specific job, the knowledge can leave with your contractor.
Interested in knowing more? Please do not hesitate to contact Recruiters.ie at 01 6325020.