Burgess Consulting Group

Why hire a consultant to handle short- and long-term projects rather than add a permanent employee to your team?  

1. Cost Efficiency and Flexibility

• No Long-Term Commitment: Consultants are hired for specific projects, allowing businesses to scale their workforce up or down as needed without the long-term commitment that comes with permanent employees. This flexibility can result in significant cost savings.
• Reduced Overhead: Hiring a permanent employee involves additional costs such as office space, equipment, technology, and other overhead expenses. Consultants provide their own tools and primarily work remotely, reducing these expenses.

2. Avoidance of Payroll Taxes and Benefits

• In Canada, no Employment Insurance (EI) or Canada Pension Plan (CPP) Contributions: Employers must contribute to EI and CPP for their permanent employees, which increases overall costs.
• No Benefits Package: Permanent employees typically receive benefits such as health insurance, paid leave, retirement contributions, and other perks. Consultants do not receive these benefits, which can lead to substantial savings for the company.

3. Specialized Expertise and Experience

• High Skill Level: Consultants often bring a high level of expertise and experience to the table. They are typically specialists in their field and can provide insights and skills that a generalist permanent employee may not possess.
• Immediate Impact: Consultants are usually hired for their ability to hit the ground running and deliver results quickly. They often require less onboarding and training time compared to permanent employees, leading to faster project completion.

4. Focus on Core Business

• Temporary Need: For many projects, the need for certain skills is temporary. Once the project is completed, there might be no further need for those skills. Hiring a permanent employee for a short-term need can be inefficient.
• Core Business Focus: By hiring consultants for specialized tasks, permanent employees can focus on their core responsibilities, improving overall productivity and efficiency within the organization.

5. Risk Management

• No Severance Costs: Terminating a permanent employee can involve severance payments and legal complexities. In contrast, ending a contract with a consultant is generally straightforward and free from such obligations.
• Reduced Hiring Risks: The process of hiring permanent employees can be lengthy and costly, with no guarantee that the new hire will be a good fit. Consultants, however, are typically brought in on a trial basis for specific projects, reducing the risk of a bad hire.

6. Administrative and Legal Advantages

• Simplified Payroll: Managing payroll for permanent employees can be complex, involving various deductions and contributions. Paying a consultant is more straightforward, often involving a simple invoice.
• Compliance and Legal Issues: Hiring permanent employees involves staying compliant with various employment laws and regulations. Consultants, being independent contractors, reduce the administrative burden and legal complexities associated with employment compliance.

Conclusion

While the hourly rate of a consultant might seem higher than that of a permanent employee, the overall cost savings, combined with the specialized skills, flexibility, and reduced administrative burdens, make hiring consultants a strategic choice for many projects. This approach allows businesses to remain agile, focus on their core operations, and efficiently manage their workforce according to project demands.