What You Need to Know About Contract Staffing Services

Last Update: June 22, 2024 | Author: Keegan Dillon

Hiring the right engineer is difficult enough, but finding the best expert for a short-term project adds a whole new challenge.

Luckily, you don’t have to invest so much time, money, and resources into filling out that critical job role. With contract staffing services, you can hire temporary staff to work on short-term projects, seasonal needs, specialized tasks, and more.

In this complete guide, I’ll go over the definition of contract staffing, the benefits of hiring temporary workers, how to find the best staffing company, and how to find the right candidate—everything you need to know to make the most out of this working arrangement.

Robot Maintenance Tech Smiling

What is contract staffing?

Contract staffing is a dynamic hiring strategy where businesses bring in temporary employees for specific projects or periods, which provides much-needed flexibility.

Unlike permanent staff, contract employees are hired for a set duration and allow companies to scale their workforce up or down as needed. This approach typically involves collaborating with a specialized staffing agency that identifies, screens, and presents the best candidates for the job.

In the engineering sector, contract staffing means bringing on board skilled professionals on a temporary basis to meet the specific skill needs of projects or address workload fluctuations. Engineering firms often face project-based demands that require specialized expertise for a limited time. So, contract staffing provides a solution by offering flexible workforce management.

Engineering contract staffing usually involves collaborating with staffing agencies that specialize in the field. Staffing agencies or engineering services platforms like JOINER Services understand the technical requirements and qualifications needed for engineering roles and can quickly identify and present suitable candidates.

Contract engineers might be hired for short-term projects, such as designing a new product, conducting specialized testing, or addressing peak periods in production.

What is contractual staffing?

‘Contract staffing’ and ‘contractual staffing’ are often used interchangeably, but there are clear distinctions between the two.

Contractual Staffing or temporary staffing typically refers to the process of hiring employees on fixed-term contracts directly by the company. This means bringing on board specialists or additional help for a specific duration outlined in a contract without the involvement of a third-party staffing agency.

What are contract staffing services?

Contract staffing services are a smart, flexible solution for businesses that need to hire temporary or project-based employees. By partnering with specialized staffing agencies, companies can quickly fill roles without the long-term commitment of permanent hires.

Plus, contract staffing services eliminate the hassle of hiring a temporary workforce by yourself. Here’s how it works:

  • Identify Needs: First, the company identifies its temporary staffing needs. This could be for a specific project, a seasonal workload increase, or to fill a temporary vacancy.
  • Engage With A Staffing Agency: The company then partners with a staffing agency that specializes in their industry.
  • Define Job Requirements: The business outlines the job requirements, desired skills, and duration of the contract to the staffing agency.
  • Candidate Search: The staffing agency uses its network to find and screen potential candidates who meet the specified criteria.
  • Selection And Onboarding: The agency presents a shortlist of candidates, and the company selects the best fit. The staffing agency handles the onboarding process, including paperwork and compliance.
  • Management And Support: Throughout the contract period, the staffing agency manages payroll, benefits, and other HR functions, providing ongoing support to both the business and the contract employee.

What are the benefits of contract staffing?

Contract staffing offers plenty of advantages for businesses that need to stay flexible and efficient. Here’s a look at some of the key benefits:

Flexibility:

Flexibility is a major perk of contract staffing. With temporary workforce solutions, you can easily adjust your workforce based on what you need at the moment.

If your business hits a busy time frame and you need extra hands, contract staffing lets you bring in temporary workers to handle the surge. On the flip side, during slower times, you can downsize without the hassle and costs tied to permanent hires.

This means you’re not stuck with long-term commitments or high payroll expenses when things are quiet. Instead, you can scale your team up or down as needed, which ensures you always have the right number of people for the job. 

This kind of flexibility helps you stay efficient and manage costs better, especially if your business experiences ups and downs in demand.

Cost Efficiency:

Hiring contract staff can save money compared to full-time employees. You avoid costs related to benefits, training, and long-term salaries, but you won’t need to compromise on niche expertise. 

Plus, you won’t have to deal with severance pay if you need to cut back on staff.

This approach allows you to allocate the company budget more effectively, allowing the business to invest in more important areas that directly impact your business’s growth and success. By bringing in technically skilled professionals on a temporary basis, you get the expertise you need without the overhead costs of permanent hires.

Access To Specialized Skills:

Contract staffing services give you access to professionals with specific skills and expertise. Whether you need a tech specialist for a short-term project or a finance expert during tax season, you can find the right talent quickly and efficiently.

These services have vast networks and a large pool of qualified candidates, so you can tap into the exact skills you need without a long search process. 

This means you can bring in experts who are ready to start right away and keep your current projects on track and your operations running smoothly.

Reduced Hiring Risks:

Contract staffing gives you a chance to evaluate a worker’s performance and fit within your company before making a long-term commitment. This trial period helps reduce the risk of hiring someone who might not be the best long-term fit for your team.

Focus On Core Activities:

By outsourcing your temporary hiring process to a specialized agency, your HR, engineering, and manufacturing departments can focus on more strategic tasks. The staffing agency handles contract recruitment, vetting, and onboarding, freeing up your internal resources.

The teams can then concentrate on activities that drive growth and improve employee engagement, like talent development, performance management, and strategic planning.

Better Productivity:

Of course, bringing in contract staff can maximize productivity, especially during busy times or for critical projects. These professionals can come into the facility without major training to help thebusiness meet deadlines and achieve goals efficiently.

With their specific skills and readiness to work, contract staff can fill immediate gaps and keep projects on track. This helps make sure that your team stays focused and productive, maintaining momentum even when workload peaks.

Robot Technician

When is it time for temporary and contract staffing?

Contract staffing can be a game-changer for businesses, but how do you know when it’s the right time to consider it? Here are some signs that indicate it might be time to look into temporary and contract staffing:

Fluctuating Workloads:

If your business experiences significant fluctuations in demand during certain times of the year, hiring professionals on a temporary basis can help you manage these peaks without overcommitting to permanent hires.

For example, when installing new equipment or performing a KIT changes on an assembly line, having extra engineering hands can be a lifesaver.

Specific Projects:

When you have a specific project that requires specialized engineering skills, niche industry knowledge, or additional manpower, contract staffing is an excellent solution.

Whether it’s for the development of a new product, an upgrade to your production line, or implementing new technology, bringing in temporary experts can ensure the project is completed on time and to a high standard.

Employee Absences:

Extended absences due to maternity leave, medical leave, or sabbaticals can leave gaps in your engineering team. Contract staff can fill these roles temporarily so that productivity doesn’t suffer and projects stay on track.

Technical Skill Gaps:

If you have a short-term need for specialized engineering skills that your current team lacks, contract staffing can provide the expertise you need. This is particularly useful in fields like robotics, design, controls or software engineering, where specific knowledge and experience are non-negotiable.

Manage Costs:

If you’re looking to manage costs more effectively, contract staffing can be a viable option. Hiring contract engineers can save on the costs associated with full-time benefits, training, and long-term salaries.

Uncertain Economic Conditions:

In times of economic uncertainty or fluctuating market conditions, businesses may hesitate to commit to permanent hires. Contract staffing, on the other hand, offers a flexible solution. As we’ve said before, it allows you to scale your engineering workforce up or down as needed without the long-term financial commitment.

Rapid Growth:

In business, rapid growth is not always a good thing. For one, you need to meet those demands before you crash and burn.

If your manufacturing business is growing quickly and you need to scale your engineering team rapidly, contract staffing can provide the additional resources you need. Such an approach allows you to meet increased demand without compromising on quality or overburdening your existing team.

How to choose the perfect contract staffing company?

Finding the right contract engineering staffing company can make all the difference in getting the best talent for your business. So, I have come up with a guide to help you pick the right one:

Understand Your Business Needs:

Start by clearly defining what you’re looking for. Ask yourself:

  • What specific skills and expertise do you need? Determine whether you need technical skills, industry-specific knowledge, or particular experience levels.
  • How long do you need the contract staff for? Establish whether it’s a short-term project, seasonal demands, or a longer-term engagement.
  • What is the scope of the work? Outline the tasks, responsibilities, and goals for the role.

Look for Industry Experience:

Choose a staffing company with experience in your field. 

For instance, if you need engineers for a manufacturing project, find an agency that specializes in engineering and has a successful track record in similar roles. Their industry knowledge will ensure they understand the specific qualifications and skills you’re after.

Check Their Talent Pool:

A good staffing company should have large and diverse talent networks. Ask about their recruitment process, how they source candidates and the size of their talent database. The wider their network, the more likely they are to find top talent for your needs.

However, it’s not just about quantity; quality matters too. Ask how they ensure the quality of their candidates. Do they pre-screen applicants, conduct initial interviews, and verify skills and experiences before adding them to their database? 

A focus on quality helps make sure that the candidates you are presented with have already met certain standards.

Evaluate Their Screening Process:

When choosing a contract staffing company, make sure they have a thorough screening process to verify the qualifications and experience of their candidates. Here are some important aspects to consider:

  • Background checks: Verify they conduct comprehensive background checks, including employment history, education, and criminal records.
  • Reference checks: Make sure they perform detailed reference checks with previous employers or professional contacts.
  • Skill assessments: Confirm they use skill assessments to evaluate technical and professional abilities.
  • Interviews: Check if they conduct preliminary interviews to assess communication skills, cultural fit, and overall suitability.
  • Certifications and licenses: Make sure they verify any required certifications or licenses, especially in specialized fields.
  • Ongoing evaluation: Ask if they have a system for ongoing performance reviews and feedback.

Remember, a thorough screening process can help you be more confident that the candidates they provide are well-qualified, reliable, and capable of meeting your business needs.

Assess The Company’s Customer Service:

You want a firm that’s responsive, transparent, and willing to work closely with your team to understand your specific needs. Quick responses to your inquiries and staffing needs are essential, as delays can hinder your projects and cause frustration.

Transparency is another important factor; the company should be open about their processes, payroll services, fees, and the status of your staffing requests so that there are no hidden surprises. 

It’s important that the staffing company takes the time to understand your business and the specific roles you need to fill. Good communication throughout the hiring process keeps everyone on the same page and allows for prompt addressing of any issues.

Consider Their Contract Types:

Finally, find out more about the temporary staffing arrangements they offer. There are different types of contracts your chosen service may offer:

  • Temporary contracts: These are short-term agreements for roles that need to be filled for a limited time. They’re perfect for covering employee absences, handling seasonal peaks, or completing short-term projects.
  • Project-based contracts: Designed for specific projects with defined timelines and deliverables, project-based contracts are ideal when you need specialized skills for the duration of the project.
  • Long-term contracts: Also known as fixed-term contracts, these are for roles that need to be filled for an extended period, often several months to a year.
  • Consulting contracts: Typically for highly specialized professionals who provide expertise and advice on specific business challenges. Consulting contracts can be short-term or long-term, depending on the scope of the consultancy work.
Female Maintenance Engineer

How to find the best contractor for the job?

Now that you know how to find the right staffing company to work with, how do you choose the best candidate from their talent pool? A great reputation is a good sign that a company’s contractors are skilled, but you still need to do your due diligence before selecting a candidate.

Here’s a guide of six key topics to help you identify and find the best contractor for the job:

  1. Define Your Needs: Start with clarity: what specific engineering skills do you need? Are you looking for extensive experience in civil, electrical, mechanical, or software engineering? Understand the technical requirements and project scope thoroughly to make sure you’re looking for the right kind of specialist. Clearly defining the engineering discipline and the project’s technical complexities can help narrow your search.
  2. Verify Credentials: Don’t skimp on due diligence. Check the contractor’s educational background, certifications, and professional history to make sure they have the credentials to back up their expertise. This step is an absolute must and can include everything from thorough background checks to contacting references.
  3. Assess Skills and Fit: Interviews are always a part of the hiring process, even if you’re hiring from an agency. They help gauge not only the contractor’s technical skills but also their fit with your company culture. For a real taste of their capabilities, consider assigning a short, relevant task. It’s a practical way to see their skills in action.
  4. Review Their Portfolio of Work: Request a portfolio of their previous projects, particularly those that are similar to your project. For engineering contractors, tangible results and successful past project deliveries can provide confidence in their capabilities.
  5. Evaluate Communication Skills: Effective communication is non-negotiable. The contractor should be articulate and responsive, capable of translating complex ideas clearly and keeping you updated on project progress without prompting.
  6. Consider Cultural Fit and Team Dynamics: Beyond skills, a contractor who meshes well with your team’s culture and ethos can significantly improve project outcomes. Evaluate their personality and professional values to ensure a seamless integration into your team.

How much do contract engineering services cost?

First, the engineer’s expertise and specialization play a major role in determining costs. Engineers with specialized skills in high-demand areas, such as artificial intelligence, robotics, or software, often have higher rates due to the value they bring and the scarcity of their skills.

Experience level is another major price influencer. Seasoned engineers who bring years of successful project management and problem-solving to the table can understandably command premium rates compared to those at the beginning stages of their careers.

Staffing agencies, which often act as the bridge between businesses and contract engineers, add their own markups to cover their services—from vetting candidates to handling administrative tasks. This markup typically ranges from 10% to 50%, impacting the overall cost of hiring contract staff.

Beyond the basic pay rate, consider the total engagement cost, which includes necessities such as special software, safety equipment, tools, or other resources that the engineer might need to effectively carry out their job.

To give you an idea, mid-level engineers might cost anywhere from $45 to $100 per hour, while senior engineers or those with highly specialized skills could charge between $100 to $200 per hour or more. These are estimated figures and can fluctuate based on the factors that I mentioned above.

Engineering Contractor Rates

Meet the right talent on JOINER Services!

If you’re looking to fill small or large gaps in your workforce, it makes sense to hire only the best of the best. From welding and automation to electrical design, and robot programming, JOINER Services has the right person for your contract engineering job.

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FAQs About Contract Staffing

Below, I describe some frequently asked questions about contract staffing services.

It depends on the role's complexity and the availability of candidates. Simple positions can be filled within days, while more specialized roles might take a few weeks. Clear communication with your staffing agency ensures they understand your timeline and urgency.
Yes! Many businesses use contract staffing as a trial period to evaluate potential permanent hires. This way, you can assess a contractor's technical skills, work ethic, and communication style fits before committing to a long-term hire. If they excel, you can offer them permanent job roles with confidence that they will succeed.
Costs vary based on the role, contract length, and industry. You'll typically pay a fee that covers the contractor's salary, benefits, and the agency's service charges. While the upfront costs might seem higher, you save on long-term benefits, training, and potential hiring risks.
Start by clearly defining your expectations and job requirements. Communicate these clearly to both the staffing agency and the contractor. Regular check-ins and feedback sessions help monitor performance and address any issues promptly. A reputable staffing agency with a rigorous vetting process will increase the likelihood of finding competent and reliable contractors.
It depends on your business needs. If you have short-term projects, fluctuating workloads, or need specialized skills temporarily, contract staffing is ideal. For long-term roles requiring deep company integration and training investment, permanent hiring might be better.

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