In close communication with clients, Green Shift Group has learned why both medium-sized- and larger companies engage external consultants, i.e. for specialized tasks as well as projects. Some of our findings are below. What are your reasons for hiring consultants in your company?
Why use consultants versus full-time employees (FTE)
Specialized expertise
Consultants often bring more specialized knowledge and expertise unavailable within a company's workforce. They may have deep expertise in a specific area or industry, which can be valuable for solving complex problems or addressing specific challenges.
Flexibility
Hiring consultants can provide greater flexibility regarding the scope and duration of work. Companies can bring in consultants for short-term projects or specific tasks without committing to the cost and obligations of a full-time employee.
Cost-effectiveness
Hiring a consultant can be more cost-effective than hiring a full-time employee. Companies do not have to pay for benefits, taxes, and other costs associated with employment, which can save money in the long run.
Objective perspective
Consultants can provide an objective perspective on a company's operations or challenges. They are not tied to the company's culture or internal politics and can provide unbiased recommendations and solutions.
Speed and efficiency
Consultants can often work more quickly and efficiently than full-time employees because they are focused solely on the task at hand and do not have the distractions of other company responsibilities.
High values and small margins of error
When budgets are substantial and sub-optimal decisions are costly, the immediate savings of employing partially skilled in-house employees will be outweighed by a highly experienced consultant, as the total economic output will favor the external consultant.
Risk sharing
Where errors can be costly in terms of damages or losses, it can make sense to engage consultants with core competencies within particular areas of expertise and with insurance coverage for damages or losses about tasks at hand.
Infrequent use of competencies
Hiring consultants makes the most sense if specific competencies are optional in the company's everyday operations.
Frequent upgrades of knowledge and competencies required
Some fields of competence are continuously under development, and it is hard for internal employees to keep up with the updated information while being responsible for various other tasks in-house.
Difficult/not possible to hire the right competencies
Attracting and retaining employees is increasingly difficult in the current job market, even though the decision has been made to recruit. This situation is more well known when hiring specialists, as they can be more selective in the choice of future employer – hence increasing churn and driving up employee demands for higher salaries, etc.
Expected downsizing and Hiring Freezes
When the company is in uncertain markets that may even be in a recession, it makes good sense to cut salary costs and be conservative with new hires to ensure the company's future profitability. Hiring consultants for some of the tasks and assignments can keep the company staffed and specialized and working on market opportunities while reducing costs and retaining key competencies and experiences in-house.
At Green Shift Group, we experience an increased demand for our technical surveys, marine engineers, superintendents, and strategy consultants to help with specific projects or business units that need outside viewpoints and experiences.
What is your current "appetite" for consultants?
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