By Jerry Grohovsky, Copyright 2014. JPG & Associates, Inc.

What Are The Advantages of Using Consultants (Or Contractors) Versus Direct Employees?
The use of consultants (or contractors) can reduce a company’s overhead costs. In environments with common project “peaks” and “valleys” of activity, resources can be easily adjusted, without paying out annual salaries and benefits (hourly pay-out is proportional to the workload required).

Other advantages include:

  • When certain projects demand certain niche skills or experiences, a consultant can be brought in on relatively short-notice to complete a specific project that otherwise may not be available within the existing internal staff.
  • Where project deadlines are extremely tight, consultant resources are a good solution, as the client can apply resources quickly by enlisting the help of a specializing agency. Also, the client can apply as many resources as necessary to complete the project in the time frame allotted, as consultants are used to the starts and stops, and the high-and lows of weekly hourly billings.
  • Experienced consultants are typically very productive from the “starting block”, as they are generally seasoned to adapt to very fast-paced environments, and are familiar with getting up-to-speed quickly, and with minimal direction.
  • Due to the accountability and visibility of consultants being paid on an hourly basis, the client can gauge the productivity of a consultant very easily, and without the “screen” of internal politics and job titles. On the flip-side, the consultant is very aware that this visibility compels them to be productive, and to give the client their bill-rate money’s-worth of results.
  • For hiring managers who cannot secure direct-hire requisitions, the hiring of consultants is a convenient and effective alternative.
  • From an accounting standpoint, consultants can reduce corporate head-count, while allowing hiring managers a means to satisfy the resource needs of their projects.
  • Consultants can often introduce a fresh point of view “outside the box”, along with new ideas, different methodologies and procedures, and new and interesting ways to approach problems.