You have an IT project to get done. You know it has to get done. It can’t wait any longer…or can it? You’ll need to figure out who in the department can get it done and still do the regular day-to-day tasks. You’ll have to figure out the time line for completing the project. Will your current staff have the expertise it takes to get ‘er done while adhering to the aforementioned time line? Upper management might tell you to hold off. Times are tough, right? Sales is down and money is not easy to come by. How do you justify getting the project done now? Let the boss know that you can get well-qualified help and save money on bill rates if you get it done now versus waiting.
Variable cost is one solution to the problem. You spend money now and make up the savings over time.
Example:
a contractor costs $65/hr x 3months (480hrs) = $31200.00 (total burden).
vs.
permanent hire, same qualifications – $77k plus benefits per year, don’t forget unemployment insurance, taxes, cost of posting ad, sifting through 25-50 resumes, 10-15 phone screens, 5-10 first interviews, 3-5 second interviews and the cost of the staff, from HR to the IT Team, taking time out to do that screening.
All you’re trying to do is get a project done, will you need the person long-term? How do you justify that to the boss? Contract-to-hire may be a good way to assess the need.
Another cost-saving consideration is the economy. Consider the scenario above. A 3month project, and people are willing to take less pay. Does that mean the person has depreciated or lost skills? No way.
Example:
a contractor costs $65 60/hr (saving $5/hr) x 3months (480hrs) = $31200.00 $28800.00(total burden). That’s almost $3000.00, and they’re better qualified because not everyone is hiring great people right now!
That’s almost 10% savings if you do it now rather than wait, AND the better qualified person is available now. In one year that person may not only be at a higher cost, but they may not even be available for project/contract work. In a year you’ll end up settling for someone at a higher rate and less experience. That’s no good.
Yes, it’s tough. Everyone knows it, but save the money now when it comes to IT projects. It will benefit you and your organization. We’re in business to earn money, and sometimes we don’t know how to take advantage in a down economy. This is just one way.