Break free from reactive recruitment: embrace Independent Contractors

Breaking the chains: the pitfalls of reactive recruitment in urgent hiring

In today's fast-paced market, relying on reactive permanent-recruitment processes can be a losing strategy for companies. Reactive recruitment, driven by urgent hiring needs, is often a knee-jerk response to various scenarios like key resignations or sudden resource gaps. This approach, fuelled by poor resource planning, fails to align with market realities and the evolving preferences of today's talent.

Follow the numbers: HR data suggests that current recruitment strategies don’t work

This is made even more evident by HR data which reveals alarming statistics:

• The average tenure of permanent employees in tech companies is just 1.5 years.

• Large companies employing 200+ people, face attrition rates exceeding 20% per year.

• The average timeframe to hire a permanent employee is a staggering 50 days.

Unlocking the link: slow recruitment's impact on higher attrition rates

The correlation between an inability to recruit rapidly and a higher attrition rate becomes evident. In exit interviews, a prevalent cause of resignations is the anticipation among existing staff to work extended hours due to the team's inadequate resourcing.

The sight of empty desks creates a sense of insecurity among current employees, as the company's struggle to recruit raises concerns about its reputation.

This disillusionment leads employees to question the attractiveness of their employer, leaving them to wonder whether a company that struggles to attract talent is the right fit for their professional aspirations.

Breaking free: rethinking traditional permanent recruitment for a modern solution

The permanent recruitment model proves inefficient for companies stuck in the reactive recruitment rut. The response often results in hefty investment in expensive talent acquisition teams, job board advertisements, LinkedIn Recruiter licenses, recruitment agency fees, and expensive applicant tracking systems. Yet, this approach often leads to unmanaged data sets, wasted time and high costs.

Companies clinging to this model might believe hiring permanent employees is cheaper than engaging independent contractors. However, this belief often overlooks the opportunity costs associated with slow and ineffective processes.

Shift from react to revolution: the solution lies in embracing Independent Contractors

Skilled tech professionals increasingly prefer contracting due to its flexibility, variety of projects, financial benefits, lack of corporate politics, entrepreneurial freedom and autonomy.

Forward-thinking companies have adapted their recruitment strategies by engaging independent contractors, winning the war for talent.

Key takeaways:

• Reactive recruitment pitfalls: reactive permanent-recruitment processes are often a reflexive response to urgent hiring needs, leading to high attrition rates and lengthy recruitment timelines.

• The high cost of reactive recruitment: companies investing in reactive recruitment waste resources on talent acquisition teams, job board advertisements, LinkedIn Recruiter licenses, recruitment agency fees, and applicant tracking systems.

• The rise of Independent Contractors: skilled tech talent is increasingly choosing independent contracting for its flexibility, variety of projects, financial benefits, lack of corporate politics, and entrepreneurial freedom.