Steven Moore
Roles and Responsibilities (R&R): Temporary Employees vs. Contractors vs. Consultants
Good day readers. We begin a new mini-series of articles that focuses on some of the different types of contingent talent professionals that businesses work with. Many people are familiar with being an employee, either as a full-time employee or a part-time employee of a company. However, there are other workers that many of you may not be familiar with or may not understand the difference between them. These workers are types of contingent professionals: temporary employees, contractors, and consultants.
In this article, we will compare each of these professional types, review their unique features & similarities to each other, and review their differences.
Defining the Roles: Temporary Employees, Contractors, and Consultants
There are some times when a company may decide not to hire new employees, due to many individual factors and reasons. They may find that they still have business-needs that need additional people to help. But not all help is the same. Let's break down three common types of workers businesses rely on: temporary employees, contractors, and consultants.
Temporary employees, often referred to as temps, are hired to fill a gap in the workforce for a limited period, typically through a staffing agency. They might step in during a busy season, cover for someone on leave, or help out with a specific project.
Contractors, on the other hand, are independent workers hired to complete a specific task or project. Unlike temps, contractors usually work on a project-by-project basis, often bringing specialized skills to the table.
Consultants are experts brought in to provide advice, guidance, or strategies for a specific aspect of a business. They typically have a high level of expertise in a particular field and are hired to solve problems, offer insights, or implement changes.
Utilizing the Workforce: How Businesses Benefit from Temporary Employees, Contractors, and Consultants
Temporary employees, contractors, and consultants can be impactful for a business' success, both in the short-term and in the long-term.
Temporary employees are the go-to when a company needs quick, short-term help without the commitment of a permanent hire. They keep operations flowing smoothly when there’s a sudden surge in work or an unexpected vacancy.
Contractors are the specialists. Whether it’s an IT upgrade, a construction project, or a marketing campaign, contractors are brought in to get the job done. They provide the skills and expertise a company might not have in-house and leave once the project is complete.
Consultants, however, play a more strategic role. They are generally not doing the day-to-day work of their client's business; they’re advising on how it should be done. A business might bring in a consultant to optimize its operations, improve financial performance, or manage change. Consultants bring fresh perspectives and high-level expertise that can lead to significant improvements.
What They Do: The Roles of Temporary Employees, Contractors, and Consultants
Temporary employees typically handle routine tasks that keep the business running, such as administrative support, customer service, or data entry. They’re there to ensure that everyday operations don’t miss a beat, even when regular staff is unavailable.
Contractors are project-focused. They might be hired to build a website, renovate an office, or manage a software installation. Their role is clear-cut: deliver a specific outcome within a set timeframe.
Consultants, on the other hand, are more about the big picture. They might analyze a company’s operations and suggest ways to cut costs or improve efficiency. Or, they might help a business navigate a major transition, like a merger or the launch of a new product line. Their work is often high-level and strategic.
Spotlight on Similarities: Top 5 Shared Traits
Temporary employees, contractors, and consultants roles have very similar traits:
Flexibility: All three—temporary employees, contractors, and consultants—offer businesses flexibility in staffing and operations. They can be brought in as needed and let go when their work is done.
Specialized Skills: Whether it’s handling basic tasks, completing complex projects, or providing strategic advice, these workers bring specific skills that a company might not have in-house.
No Long-term Commitment: Businesses don’t have to make a long-term commitment when hiring temporary employees, contractors, or consultants. This makes it easier to manage costs and resources.
Cost-Effective: These workers can be more cost-effective than hiring full-time employees, especially when the need is temporary or specialized.
External Perspective: Contractors and consultants, in particular, can offer an outside perspective that helps a business see things differently and implement changes more effectively.
Differences: Top 5 Contrasts
With the similarities between the three contingent professional types comes major differences in focus and application. These differences include:
Scope of Work: Temporary employees usually handle routine tasks, contractors work on specific projects, and consultants provide strategic advice. Their roles differ significantly in terms of responsibility and impact.
Level of Expertise: Consultants are generally hired for their high level of expertise in a particular area, whereas temporary employees and contractors might be brought in for more general or specific skills.
Independence: Contractors and consultants often work independently and may not be as integrated into the company culture as temporary employees, who might work closely with regular staff.
Duration of Engagement: Temporary employees might be with a company for weeks or months, depending on the need. Contractors are typically hired for the duration of a project, while consultants might only be involved during the strategic planning or implementation phases.
Legal and Tax Considerations: The way businesses handle legal and tax matters for temporary employees, contractors, and consultants can vary. Temporary employees are usually on the company’s payroll, contractors are independent and handle their own taxes, and consultants may be hired through a firm or as independent professionals.
Bringing it all together
Temporary employees, contractors, and consultants are invaluable professionals. Each plays a unique role in helping businesses operate efficiently and adapt to changing needs. While they share some common benefits, like flexibility and cost-effectiveness, their differences in expertise, scope of work, and independence make them suited for different types of tasks. Understanding these distinctions allows companies to make smart decisions about when and how to use each type of worker, ensuring that they get the right help at the right time.
As businesses navigate the best solution for their operational needs, the choice between temporary employees, contractors, and consultants requires serious thought and planning. Ultimately, it's important to note that the choice between either one or all of these solutions depends on the specific needs, size, and complexity of the organization, as well as budget considerations.
