Any HR manager, IT manager, engineering manager, business owner, or office admin can refer to this post for advice on initiating the process for sourcing contract engineering services. Contract engineering services refers to the placement of contingent staff with specialized skillsets for a period of 3-12 months (or longer), either onsite or remote. These contractors are typically in Engineering, IT professions, Software Development, and many other technical fields that require either a short-term flexible employee, or a highly-specialized quasi-consultant.
Be Careful! — These individuals qualify as “independent contractors” if they are not under the control and direction of a first-line manager, or any other manager. However, they may be considered an “employee” of your company according to most state employment laws.
Partnering with a contract engineering services provider like Expect Technical Staffing can remedy this scenario and enable your company to hire contractors for short-term assignments and long-term critical projects. By doing so, Expect Technical Staffing would be the provider of payroll services, workers comp insurance, employee liability insurance, and unemployment insurance fee’s and any other department of labor & employment fee’s required. Also, Expect Technical Staffing may act as a dotted line to the employer and contractor during conflict or termination.
All contract engineering service providers will charge a margin for the contractor’s hours invoiced to cover the expense listed above, but more importantly to offset the cash flow risk involved with payroll. The only way around this is to hire the contractor “quasi-direct”, but the company would be responsible for employee benefits if he/she decides to file for unemployment.
As this type of hiring process involves complex labor laws related to both contingent employees and full-time/permanent employees, it’s always advised that the employer consult with an attorney specializing in labor and employment law.