Contractors isn’t a dirty word: Demystifying the role and value of contractors

In Australia’s dynamic business landscape, agility is crucial. Growing economic uncertainty and the rapidly changing landscape of global business mean that the ability to pivot, embrace innovation, and strategically respond to evolving circumstances is a necessity for any company to remain competitive and resilient.

This need for flexibility has more Australian businesses exploring the value of contractors, who enjoy a significant degree of autonomy regarding their work, encompassing control over their work hours, work setting, and methods of task completion. Although contractors often face negative stereotypes related to factors like job insecurity, outsider status, and a lack of commitment and skill levels, it’s important to recognise that these perceptions don’t universally apply. Contractors offer valuable expertise, flexibility, and specialised skills, with many choosing contract work for its benefits, such as autonomy and diverse opportunities.

The evolving landscape of work has propelled an increasing number of individuals to choose freelancing or independent contracting over traditional employment. The desire for flexibility and autonomy has been a major driver of this shift. It’s not solely a reaction to economic downturns; the technology sector, in particular, demonstrates a fundamental shift towards individual empowerment, allowing professionals to dictate their working environments and collaborators.

For employers, hiring a contractor provides immense flexibility to a company. Contractors possess specialised skills that can fulfil specific needs for a defined duration. Their independence and project-oriented focus make them valuable assets in executing specific tasks or projects. A prime example of this approach is hiring web designers – individuals with exceptional talent, creativity, and technical expertise, who are often challenging to find and hire full-time. Retaining a web designer on a contract basis can accelerate timelines considerably while also bringing a unique set of skills and an outside perspective. This approach streamlines the process for employers, allowing them to fast-track their company objectives efficiently and effectively.

However, to maximise the advantages of hiring a contractor, companies must define their needs precisely and determine the appropriate circumstances for hiring a contractor versus a full-time employee. Achieving the right balance is crucial; excessive micromanagement can undermine the benefits of hiring a contractor, as their strength lies in their ability to operate independently and effectively.

The reputation of contractors could benefit from a better understanding of their role in the labour market. Common misconceptions that label contractors as high-cost individuals providing little value need to be dispelled. In truth, contractors often bring specialised expertise that can significantly benefit a company. Especially for employers that are looking to expand beyond borders, engaging contractors on a temporary trial basis can be a strategic approach to test specific markets. Leveraging the unique skills of independent contractors, including their local knowledge and language proficiency, allows employers to effectively broaden their operations and foster business growth.

Nevertheless, it’s important to highlight that in Australia, contractors bear the responsibility of potentially profiting or incurring losses for each assignment. They are usually personally accountable and liable for subpar work quality or any injuries sustained during task execution. Independent contractors do not receive standard employee benefits like paid annual leave, sick leave, or guaranteed minimum wages. Both employers and freelancers need to understand the pros and cons of any arrangement to make informed decisions that serve both parties effectively.

The changing nature of the work environment emphasises the importance of embracing flexibility. By looking past outdated stereotypes, Australian businesses have an opportunity to tap into the value of contractors and make an investment in expertise, flexibility, and progress.

Pedro Monteiro de Barros is the senior vice-president and general manager for contractors at Remote.