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Why IT Companies are Choosing Temp Employees

Why IT Companies are Choosing Temp Employees

Author: Chris Alex /Tuesday, February 11, 2020/Categories: SNI Companies, SNI Technology

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One trend that’s been gaining traction over the years is tech companies choosing temp/contract employees over hiring employees directly. The so-called gig economy is changing the workplace and we are seeing an increased ratio of contract workers vs. regular employees. This isn’t just a trend in Silicon Valley either (although large tech giants like Google, Facebook, Amazon, and Uber are known for hiring contract workers) but something that’s expanded nationwide. So what is driving companies to hire contract vs. direct employees? We’ll take a look at why this trend is here to stay and what that means for the future of business.

Increased Workload
One of the main reasons companies are outsourcing staffing and using temp employees is due to a sudden increased workload, however they are also utilizing contract employees to cover if people are going to be out of the office for an extended amount of time and someone is needed to fill in. In such situations, companies may need to hire someone fast whose has a specific area of expertise: this is where temp employees are the perfect option.

Cost Savings
Companies might not have the budget to hire a direct start but often can afford temporary workers. There is also an industry saying, “try before you buy” which allows companies to save money by not having to pay for the start-up costs for a new direct hire employee. Staffing agencies absorb the onboarding costs, employment fees like workers comp and some even provide healthcare benefits, 401(k), etc. for their contractors. Often times temp workers can be specialized in a certain field, which requires less onboarding and training, saving companies money and time as well.

Future of Temp Employees
As this trend becomes normalized, the stigma that used to be tied to temp workers has shifted. With the unemployment rate under 4%, temp employees have the advantage and are choosing what projects they take on and for how long. By honing in on their skills and becoming an expert in a specific field, the outlook for temp employees is promising.


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Chris Alex
Chris Alex

Chris Alex

Chris comes with 10+ years of Specialized Staffing industry experience and he has placed 400+ Professionals in various markets.

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Full biography

Chris comes with 10+ years of Specialized Staffing industry experience and he has placed 400+ Professionals in various markets. He is a multi "Reach for the Stars (both Chairman's Club and President's Club)" Winner and he prides himself in having a high level of ethics while providing his clients with the highest level of service possible.


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