What are the Benefits of Software Engineering Contract Roles?

Software engineering is a field that never stands still - it’s constantly evolving. But don’t let that be a source of frustration. Instead, why not embrace the change and even turn it to your advantage? One way to do this is through contract hires. Let us explain.

Contract software engineers offer a range of benefits. They provide flexibility and scalability, helping your business stay responsive and adaptable. Contrary to what many might think, they’re also a cost-effective and low-risk solution for software engineering projects. Need specific expertise for a niche requirement? Contract hires let you tap into a global talent pool to find exactly what you need.

Curious about how your business could gain from recruiting a contract software engineer? Our detailed guide breaks it all down for you!

Improved Flexibility and Scope for Scalability

Software engineering projects can be notoriously unpredictable. Goals, timelines, and requirements can shift suddenly, leaving businesses scrambling to adapt. That’s where contract roles shine. Known for their flexibility, they enable businesses to respond quickly to dramatic project changes. For instance, if additional support is needed, contract roles offer a fast and efficient way to bring in the expertise required to keep things on track.

Contract roles also provide on-demand scalability, making them an invaluable resource for businesses. If your organisation is planning to launch a new product, your existing team might lack the size or specific skills needed to bring it to life. Additionally, if certain features of that product resonate strongly with your target audience, these roles allow you to quickly scale and focus resources in those areas to maximise success.

A Cost-Effective Solution 

Contractors with software engineering jobs represent immense value in more ways than one. While they’ll undoubtedly bring expertise, they can also save companies money in multiple ways. 

Contractors offer a cost-effective, short-term solution without the financial commitment of a permanent hire, giving your business greater control over its budget. With contractors, you only pay for services when needed, allowing for more flexibility in managing resources. Additionally, by choosing contractors, your business avoids expenses associated with full-time employees. In fact, companies can save up to 20-30% compared to the costs of a permanent hire. Here’s why: 

• No employee benefit costs: Avoid expenses like health insurance and paid annual leave.
• No training required: Contractors come with the experience needed to start contributing immediately.
• No fixed salary: Contract software development roles eliminate the need for ongoing salary commitments.

Risk Mitigation 

Full-time employment can certainly benefit your business. When it works out, you gain an employee with the right skills, someone who aligns with your company culture and contributes to long-term success. However, there’s always the possibility that, over time, they may not turn out to be the right fit. Here’s what could go wrong.

Potential Performance and Productivity Problems 

A business will not truly know of a professional’s capabilities until after they’ve been hired. Whereas contract software engineers have a proven track record and will avoid the following: 

• New hires may underperform, falling short of expectations and impacting overall productivity. Addressing these issues can drain resources, particularly if a replacement becomes necessary.
• Training new employees often takes weeks or even months, and during this time, your business is paying their full salary without reaping the benefits of peak productivity.

Legal and Compliance Hurdles 

What can be done if a new hire falls below your business's expectations? It’s not quite as simple as terminating a contract software engineer. Here’s what could happen: 

• If a full-time employment relationship ends on bad terms, there’s a risk of wrongful termination claims, potentially leading to costly and time-consuming legal disputes - something no business wants to deal with.
• Poorly written contracts can create confusion over job responsibilities, leading to disagreements. With a contract software engineer, however, these risks are significantly reduced since they’re hired for a clearly defined purpose.

Attrition can be Alarming 

In general, full-time employees tend to demonstrate greater loyalty than contract hires, which is understandable given the specific, short-term nature of a contract software engineer’s role. However, this doesn’t eradicate the following risks: 

• Employees leaving for other opportunities
• Long-serving employees bring valuable insights, and losing this can be detrimental to your business.
• Replacing staff and training new employees can be time-consuming and expensive.

According to a report by Gartner, the IT employee turnover rate is forecast to be 13.8% higher than before the pandemic. Disconcertingly, the figures are higher in the software development industry. An iCIMS study from last year found that the tech industry has a higher turnover of 18.3% compared with other sectors. 

Access to Expertise 

Software engineering projects often demand niche skill sets that a core team might not be equipped with. Contract hires have comprehensive knowledge of specific disciplines. This could encompass high-end programming languages, frameworks, or cutting-edge tools that not many professionals have had exposure to. 

Additionally, contractors frequently work on various projects across the Software Development sector. This hones their skills and makes them accustomed to the latest trends and best industry practices. Let’s explore other benefits.

Faster Time-to-Market 

Contract software engineers can seamlessly join your business and team right away. As we’ve discussed, they bring extensive experience, eliminating the need for lengthy onboarding.

But speed isn’t just limited to their joining process. For example, if you’re launching a product on a tight timeline, contract hires can quickly integrate and help accelerate the entire process.

A Fresh Perspective 

Bringing in an element of objectivity to a software engineering project can help bypass any potential internal biases that may be present within a full-time team. Contractors, having little connection to the business, focus solely on showcasing their expertise and delivering the project on time and to the highest standard.

Upskilling Existing Full-Time Teams 

One of the reasons you might pursue a contract software engineer is because of skill gaps in your core team. Why not tackle that by encouraging your contract hire to transfer their valuable knowledge? Their mentorship will prove invaluable. 

A Broad Talent Pool 

Do you have a project so niche that you need to widen your search? Go global! There’s been an increase in remote software engineer jobs. A Stack Overflow Developer Survey found that 83.59% of participants worked remotely, with 41.41% operating fully remotely, while 42.18% worked in a hybrid model. This means geographical limitations don’t restrict your talent search.

Reduced Overhead 

Another advantage is that they can help your business save money. While contractors’ fees might seem higher on an hourly basis compared to a full-time employee, they eliminate additional costs like benefits, payroll taxes, and long-term commitments.

Also, as previously mentioned, many contract software development jobs can be completed remotely, removing the need for office space and equipment. Furthermore, contractors will likely be equipped with tools and pay for their software licenses independently - saving your company more money. 

From an administrative perspective, there’s typically no need for HR involvement. Contractors’ experience, skills and short tenure with your company render performance reviews and career planning redundant. 

Final Say: The Benefits of Hiring a Contract Software Engineer

Why consider hiring a contract software engineer? They offer flexibility and scalability - key assets in the rapidly advancing world of software development. Beyond that, they bring valuable experience and specific skills without becoming a financial burden on your business.

Contractors can quickly adapt to changing project demands while providing technical guidance to complement your core team. Given these benefits, it’s clear that contract hires present a strategic option for businesses to explore.

The rise of remote work has transformed software engineering recruitment, granting organisations access to a global talent pool. If your business needs to scale quickly, complete a specialized project, or cut costs, contract roles are definitely worth considering.

High-impact Software Engineering Recruitment

Solutions to overcome your recruitment challenges? Yep, we’ve got that and much more. At Propel, our consultants live and breathe technology! They’ve become embedded into the industry, enabling us to develop a vast network of professionals we’re eager to connect you with - because our network is your network.

Visit our services page to discover how we can help your business soar. Alternatively, contact us today to connect with a member of our warm and energetic team.