There’s no doubt that the use of contract labor has been on the upswing – especially given the economic uncertainty of the last few years. But now that the economy is stabilizing, many companies continue to hire contract workers for three important reasons:MDI Blog Feb.

  • Contractors save your company time,
  • Contractors save your company money,
  • And contractors create more staffing flexibility. 

These benefits hold true here in Dallas/Ft Worth, and in markets across the nation. Let’s look a bit more closely at how contractors can provide these benefits to your company.

Saving Time

Managers can usually get three weeks of productive work sooner when going through the right staffing firm (compared to direct hiring). When working with the right IT staffing firm, the median time to fill a position is five days, versus 24 days for companies that make a direct hire, according to a study published by Staffing Industry Analysts. The same study revealed that smaller staffing firms specializing in a specific skill set excel at getting the right talent in place faster.

In the world of IT, many companies have projects that can last from 12 to 18 months. With tight project deadlines, companies need to have a fully-staffed IT department in order to deliver projects on time. That means  finding the right talent and finding it quickly is key. This is where the right staffing firm can come into play.

Saving Money

As the U.S. job market grows and unemployment shrinks, it is becoming more difficult to find and recruit the right candidate using traditional hiring methods.

Because Dallas/Ft. Worth consistently ranks in the top US cities for tech jobs, it is one of the most competitive for top IT talent. The major competitors for top IT talent are Dell, Deloitte, HP, Accenture, Bank of America and PwC, among others. Since the cost of living in Dallas/Ft. Worth is slightly higher than the national average and the high tech job growth rate is equivalent to the national average, there is higher starting salary expectation than other markets in the country. Add to this the fringe benefit costs associated with a full-time employee (taxes, insurance, paid vacation, sick leave, 401K match, profit sharing, etc.), and you have another 20 to 40% on top of base salary.

By hiring a contract worker, you are getting the equivalent talent of a direct hire without the added costs of a full-time employee.

Creating Staffing Flexibility

By hiring contract workers, companies can ensure they are consistently ahead of the curve when it comes to talent. Bad hires can cost a company anywhere from 14 to 28 times their base pay. Putting this in a dollar format, a bad hire for a mid-level position could result in a million dollar mistake for your company. By hiring a contract worker, you can be sure that the candidate is a fit for the position without a long-term commitment.

Additionally, if you work with a contractor who doesn’t turn out to be a fit with your company’s culture and goals, you simply don’t hire them again. When you’re hiring IT talent, a targeted skill set is often critical to the success of your project. With a contract worker, you can hire the right person with the exact skillset you need for the specific task or project at hand, preventing you from having to incur the costs of training a full-time employee.

Overall, there are true benefits to hiring contract work for project needs.  We invite you to contact us for more information on how we can help you.

Jeff Dean
Jeff Dean is the managing director of MDI Group’s Dallas/Fort Worth office.  If you are interested in learning more about how to attract the best IT talent in the Dallas/Fort Worth area, contact Jeff directly at or call us 888-416-7949.  MDI Group also has offices and specializes in recruiting IT talent in Atlanta, Austin, Charlotte, Greenville and Phoenix.