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Contract-to-hire: Build scalable and flexible remote engineering teams

Contract-to-hire: Build scalable and flexible remote engineering teams

The ‘remote work’ concept has become synonymous with the post-Covid era. Consequently, establishing a flexible remote engineering team is now critical for an organization’s success. For this, numerous companies are adopting the contract-to-hire method to bring in remote talent and achieve maximum flexibility to navigate the post-pandemic economic uncertainties. In this blog, we have discussed some of the advantages of hiring remotetwitcontract-to-hire developers in 2022.

When companies hire for a time-specific short-term role, along with the possibility of onboarding the professional full-time once the contract ends, it is known as a contract-to-hire. Also called ‘temp-to-hire”, this alternative hiring process allows a company to exercise flexibility by testing out a remote developer before fully committing to hire them. This ensures lower risks for the organization while they still aim to fulfill their product development goals. In the post-pandemic world where the business landscape has been extremely challenging, this hiring model has allowed organizations to adapt and push for their goals, instead of merely surviving.

A software contract job is usually like a “try before you buy”, but for both the employee and employer. In such cases, your company will offer a paid trial period, anywhere between one to three months (can extend up to a full year, based on company needs), where the developer will operate like any other employee. The key difference here is that you can let them go once the contract ends, and aren’t obligated to hire them full-time. However, if it works well, then you can offer the full-time role.

While it may sound uncomplimentary for the remote developer, that is hardly the case. Yes, there has been a radical escalation in the number of companies wanting contract-to-hire employees since Covid-19. But, an increasing number of employees are looking for the same too, that is, contract-based gigs. According to Monster’s recent survey, 92% of employees consider now the right time to dive into the gig economy.

  • 57% of respondents said they would accept a contract-to-hire job while they’re working in-between full-time roles
  • 52% said they would prefer long-term contracts with flexible work timings
  • 39% said they would prefer short-term contracts

Hence, the gig economy has been flourishing, to such an extent that one in five American jobs today are held by a contract-based worker. As such, there’s no dearth of software engineer contractors, and while deciding between hiring developers on a contract basis or full-time is still a critical staffing question, the former proves to be highly beneficial today.

Contract-to-hire vs freelance vs agency software developers

Hiring remote developers through software contract jobs is significantly different from hiring developers from a particular agency, or recruiting freelancers. The biggest difference is that the contract developer will work under your company as the other employees, following its policies and enterprise regulations. Plus, the advantage you get is that the remote developer won’t work for other organizations on the same side, like freelancers, do. They will devote their time and energy to help your company achieve its goals, and you also get the added benefit of securing them for the long run through full-time employment.

Moreover, recruiting a contract-to-hire remote developer is one of the best ways to evaluate how he or she integrates with your organization, assess their work quality, and then decide if they’re a good fit as a full-time employee. This is usually not the case when you hire a developer from an agency or a freelancer.

Benefits of hiring contract software engineers

Today, Google houses more contract workers than full-time employees. At Apple, the trend remains the same, as the global tech giant continues to expand by onboarding contract-based workers. What these translate to, is that the contract-to-hire model is more than just an alternative to quintessential hiring processes. Rather, it allows enterprises to remain competitive in today’s economic landscape and not miss out on onboarding elite talent who are increasingly opting for contract-based roles.

Here are some of the key benefits you can expect when hiring developers via software engineer contract jobs.

1. An ideal staffing approach for nimble, modern-day businesses

As noted earlier, hiring software engineer contractors offers your organization very meaningful staffing flexibility. Once you onboard a full-time employee for just one critical project, you will still need to pay them after it’s completed. If your company handles work that goes beyond those projects that keep such developers engaged, you will end up using your salary budget inefficiently.

However, a remote contract-to-hire developer can choose to move on to another gig once your project is completed, or if there’s nothing else that requires their hands-on involvement. Ultimately, this is more cost-effective, and hence, provides a flexible approach that has helped modern enterprises tackle economic hindrances and thrive in the post-Covid business sphere.

2. Rapidly scale your project team with contract-to-hire devs

More often than not, finishing a unique project requires extraordinary skills and your enterprise may lack them in-house. In such cases, hiring full-time developers might not be exactly beneficial, as it would lead to overstaffing and higher costs.

Contract software engineers are the perfect way to quickly build up a team to finish such projects. Yes, this is somewhat an extension of the above-mentioned flexible staffing approach. At the same time, skilled and experienced contract developers also help you close the skills gap on the said project.

For example, your organization is currently struggling with machine-learning models for a client’s project. All your staff needs is a developer with the required experience building and training ML models. Hence, you can solve this by hiring a contract-to-hire remote developer with those skills to complete the project successfully. Plus, this helps you complete the project in the most cost-effective manner.

Moreover, if you like their work and have similar projects in the pipeline, you can offer a full-time role to keep them on board and maintain the team’s efficiency for those projects.

3. Software contract jobs: An ideal way to check the fit

It’s no secret that companies find it uneasy to let full-time employees go when it’s not working out. There are severance costs involved, not to mention the additional paperwork and taxes you will have to take care of. Moreover, there’s the added worry of others talking about the sudden firing of a full-time worker, which will most certainly create anxiety and hindered productivity in your workplace.

Needless to say, firing full-time employees is a situation you want to avoid, and with software engineer contract jobs, you can easily do that. Temp-to-hire is the best way to check if your remote developer is the right fit for your organization and entails no additional obligations. It’s more like an extended job interview, with pay, that allows you to test out the developer’s skills, utilize them for your current need, and also assess if they would be a good addition for the long run.

This means you would have to bear no severance costs or taxes, or tedious paperwork. Your employees wouldn’t have to dwell in ambiguity, wondering if they’re the next to go. Plus, your hiring managers wouldn’t have to worry about firing employees. All in all, the productivity remains unhindered and you get your project requirements; a win-win for you!

What’s more, contract-to-hire also gives the remote developer a chance to prove themselves. You aren’t left with the data and feedback from just the interview, to evaluate if the developer is the right choice.

4. Contract software development is budget-friendly

Did you know that a full-time developer’s median salary is approximately $113,000? However, that’s not it. In addition to this figure, you will also have to pay nearly $37,500 in extra costs for mandatory employee benefits, a 32.3% increase from the base salary.

In these uncertain economic times, staffing needs are changing rapidly, which makes cost-savings more imperative than ever. With a contract-to-hire developer, you can easily avoid the 32.3% extra cost, as such employees typically aren’t entitled to healthcare plans, insurance, and other employee benefits until they join as full-time workers. Hence, if you’re currently operating on a restrained budget, contract-based hiring should be your go-to.

5. Contract-to-hire developers need minimal to no training

One of the best parts about choosing contract software development is the amount of resources you’ll save. The pool of contract developers usually includes seasoned techies who have had a fair share of project-working experience, and are familiar with software development’s ins and outs. Even if you find a developer with some experience, you’d still need to invest your time and energy in training them and familiarizing them with the company’s processes. Meanwhile, a contract remote developer would contribute from their very first day, with a little guidance about company policies and other regulations.

6. Your company’s staffing risk decreases

One of the many reasons why hiring through a software contract job allows companies to tackle uncertain business times is staffing risk mitigation. Recruiting full-time developers continues to be risky in today’s tight job market. Your recent full-time hire might perform exceptionally well, but if they choose to join the ‘Great Resignation’, your organization will suffer the loss. All your resources spent recruiting, onboarding, and training the developer will go down the drain. Moreover, this doesn’t even take into account the new hires who are a poor fit for your company.

The solution? You must embark on a newer staffing process, which contract jobs present. Contracts reduce the staffing risk drastically, as you can simply terminate their contract if they aren’t the right fit. On the other hand, you can hire them if they do perform well, and enhance your current project development team. As you can see, getting contract-to-hire developers offers flexibility like never before.

7. Contract-to-hire developers bring in immense flexibility

Yes, the importance of contract jobs’ flexibility has to be reiterated. That’s because turbulent times require companies to adopt flexibility to thrive, not just survive. While hiring full-time employees is the norm all follow, it can also result in over-staffed teams where you end up paying benefits and salaries to poorly-fit employees, which is unsurprisingly a big no-no for any firm. At the same time, you don’t want to be understaffed and invite the risk of not completing the workload.

Contract-to-hire software jobs will allow you to avoid these two extremities by fulfilling the exact capacity that can fluctuate with project-based or seasonal needs. Plus, with a temp-to-hire, you also gain the flexibility to delay full-time hiring decisions to get your current and immediate work done. All in all, your company gets ample headroom to build and deploy projects faster without having to commit to developers full-time and dealing with its unfavorable consequences.

Cons to keep in mind when hiring contract developers

While choosing contract-to-hire is undoubtedly helpful for your organization, it does come with certain flaws. Here are some disadvantages you must consider before hiring contract software engineers: -

  • The probability of starting over - Although experiencing a trial run is why contract jobs are beneficial, there is always the possibility of things not working out favorably. When the contract is about to end, if you don’t find the remote developer a right fit for your organization, you won’t offer a full-time role, right? Hence, a new search will begin all over again, which might take up your time and money.

  • Lesser job security - A contract-to-hire role does offer multiple benefits to job seekers, but they may still face the dilemma of losing their position upon contract termination or end. On their end, they have to job hunt again, so they might simply opt for a direct-hire role. This fully depends on developers’ mindset and preferences, but overall, poses lower job and financial security. At your end, you can reassure them about your intentions during the interview and inform them that a full-time role will be available if the contract works out smoothly.

Get elite contract-to-hire remote developers at turing

Today, no employer wants to spend extra dollars and resources to onboard developers who might be right for the current project, but not for the long haul. This is what results in the success of the contract-to-hire model, which is equally beneficial for job seekers. However, this model still includes vetting rounds and the looming risk of starting all over again does pose a problem. However, you can find an easy and worthwhile solution to these issues by simply heading over to Turing.com, an AI-backed revolutionary deep jobs platform that eliminates hiring risks, streamlines the entire process, and matches you with remote Silicon Valley-caliber developers.

Turing’s Intelligent Talent Cloud sources, vets, and rigorously tests every developer to scoop out the top-most remote talent globally. All you need to do is follow four simple steps to hire a software engineer contractor, at the fraction of the cost. What’s more, once you interview a developer, Turing offers a no-risk, two-week trial period that begins within days. Hence, you get the complete advantage of the contract-to-hire model and also a brief free trial to test if the developer is worth your contract or not. Join the group of companies worldwide who trust Turing.com and onboard the top 1% of remote talent, hassle-free.

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