How Contractors Have Made Themselves A Viable Option For Large Companies

joseph cole

Updated on May 2, 2023

ompanies have never invested as much money in hiring new employees as they do today. This would mean that they are doing it well, right? Wrong. Businesses have never done a poor job of hiring people. Even though the process has been constantly upgraded and “perfected”, the results show that these practices aren’t working out.

One of the reasons for this is that a lot of people are turning away from traditional full-time employment and turning to contracting, freelancing, self-employment, or whatever you want to call it. The US Government Accountability Office report shows that around 40% of the workforce in the states fits into this category.

Independent Contractors in The US


However, one of the biggest reasons for this is that they are actively looking for employment, as they depend on it to make their pays. Full-time employees are harder to reach, as they aren’t active in the labor market.

How contractors approach finding work

Contractors are actively updating their contact information, resumes, researching the market, networking, and learning about their industry more than full-time employees. They’ve chosen their career path while being aware that they will constantly have to look for new jobs and create opportunities for themselves.

In many cases, they hear about opportunities through staffing firms or recruitment agencies. They get informed about companies that might need their services, check out their sites, read about them, talk to their employees, and so on.

Companies that are looking to take advantage of such a workforce need to tap into channels where contractors are already active. For example, one of the best ways of hiring a contractor for a tech role is through recruitment websites, and agencies have large databases of active contractors who are always in the loop.

Why do companies hire contractors instead of employees?

A lot of organizations still look at contractors as people who couldn’t find full-time employment.

This is rarely the case, as most contractors have willingly decided to pursue this path. The fact that there are so many freelancers or part-time workers now shows that companies are open to hiring these kinds of workers.

But what are the reasons for doing this? First, a company doesn’t have any kind of commitment towards an independent contractor, except to pay their fees as per their agreement. They can nullify the contract with them far more easily in case the contractor isn’t delivering what was promised.

Most importantly, contractors cost much less. Hiring full-time employees involves a lot of additional costs like taxes, benefits, healthcare, bonuses, training, and so on. In reality, they cost around 50% more than their actual wages, while contractors don’t have any hidden costs.

Obstacles contractors face

A lot of recruiters still don’t take contractors seriously as full-time employees.

Recruiters don’t pay enough attention to their roles, skills, preferences, credentials, and field of expertise. This leads to contractors being contacted for jobs that don’t match their knowledge.

Not only is this bad for contractors, but it’s also bad for the companies represented by recruiters. In the end, both parties have a negative experience. Furthermore, recruiters often don’t provide relevant information to contractors as well about the company that is offering a job and the required expertise.

Therefore, it’s important for both contractors and companies to find a recruitment agency that has a detailed understanding of the situation and the needs of both parties. Luckily, there are more and more recruitment companies that take the matter seriously and can provide relevant information that leads to a fruitful cooperation.

Contractors want to challenge themselves

Most of the contractors quit their full-time jobs because they are unfulfilling.

They don’t see any advancement opportunities and are stuck doing the same things over and over again. Contractors actually have more initiative and independence.

These types of people want to challenge themselves, improve, and learn something new. And a part-time business model suits them more because it offers such opportunities. Contractors are willing to get the job done, no matter what, and don’t have the corporate eye looking over them and limiting them in their aspirations.

They see each gig as a way of accomplishing a new stage in their careers and advancing as professionals. Furthermore, they have the option of choosing what kind of job they want to do, so they will always be motivated when hired.

They are specialized and bring a lot of knowledge to the table

Most contractors specialize in a certain role and have been through all sorts of scenarios with different companies.

They are dedicated to their work and must improve themselves constantly to stay competitive. On the other hand, full-time professionals are usually stuffed with various tasks and don’t get much chance to develop.

Their training is monitored and pre-determined by the company they work for. Contractors have more freedom to learn and broaden their skill sets whenever they want to. This means that they bring the latest knowledge in the industry and can often handle projects better than regular employees.

Instead of having to invest lots of money in employee training, all the while hindering their productivity, companies can tap into the contracting market to get highly specialized and qualified people who will do the job quickly. Contractors understand that they need to provide cutting-edge services to stay competitive, and this is why large businesses can rely on them.


In the end, contractors are also willing to take on full-time jobs if they establish good cooperation with a certain company. They aren’t forced into it just because they need money but actually fit in well with the organization. This can lead to many benefits on both sides, allowing contracting companies to adjust their approach and find employees they can retain for a long time.

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