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Full time hiring has eaten up the contractor/freelance market:
👉46% Q1 2021
👉19% Q1 2022
That’s the percentage of contract hires as a percentage of our total hires at Hirewell. Full timing hiring is the other component of that.
And that’s with our total placements going up by 67% during that periods.
What’s driving the shift from contract to FTE?
1. Coming out of 2020, there was tons of uncertainty. Companies weren’t on great footing and couldn’t commit to full time hiring.
And there were a lot of people on the sidelines, unfortunately. With higher unemployment, people were willing to take on temporary engagements as contractors.
2. Companies still *want* to hire more contractors. But the supply side flipped. The amount of people open to contract engagements has fallen off.
Why?
Classically, you could make more money as a contractor. (Assuming you’re on active projects continually). The premium you could command on a contract basis is enticing.
Except FTE salaries skyrocketed. Average salaries for software engineers is up 18%. Internal recruiters 30%.
What’s the point of taking on the uncertainty and risk of contract assignments when you get paid just as well not to?
If you’re interested in more data focused trends we’re seeing, Hirewell Data Insights: Hiring Trends Q2 2022 is available here.
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The contract market sure has dried up...