GUEST COMMENT: Change management contractors are worth every penny
Despite the austere economic conditions, Scotland's large banks have been employing legions of change management professionals on often inflated rates compared to permanent employees. But I would argue that they're worth the extra money.
Most banks in Scotland are recruiting again, but budget restrictions and cost approval are still at the forefront of most firms' agendas. There's a growing tension between the need to bring in talented individuals with specific skill-sets into the business and a trend to focus on recruiting directly, and on a permanent basis, as a cost-saving exercise.
This approach doesn't work for change management professionals. Banking and financial services companies in Scotland, like elsewhere in the world, are undertaking significant business transformation initiatives as they recover from the financial crisis. This means reviewing everything from finance functions to technology systems and they need specific expertise to help them achieve this.
Unfortunately for them, most other financial service organisations are undertaking similar projects, and the role of the change management professional has seldom been in such high demand. Most organisations trying to cut costs and recruit for these roles on a permanent basis are failing, and many are being forced to re-engage with contractors.
Contractors get the job done
Even taking into account the extra remuneration costs associated with hiring a contractor, it's not a decision that banks will regret.
The contractor workforce prides themselves on delivery, and this is where they really add value. Contractors push themselves to deliver on schedule, and many of the associated costs of a project running over deadline can be avoided. The overall cost of a project can be off-set by the fact that this is a 'pay as you go' service, where an individual is paid only for the days they work and ultimately the success they deliver.
Most also choose the contracting route because they're confident that the range of exposure to a variety of environments, systems and challenges throughout their career. This often means their impact on the business they join is instant.
The nature of their role means that change managers shake-up the current way of doing things within the banks, which inevitably creates some internal resistance. But a contractor comes into the workplace with a clean slate, without the existing relationships forged within the organisation by their permanent peers, which are inevitably complicated by bias - good or bad. Therefore, they're more effective at getting things done.
A permanent hire doesn't equal commitment
One of the main reasons for shunning contractor hiring is that banks can't develop them in the same why can for permanent hires, but it's wrong to assume permanent hires are there for the long haul these days.
Candidates are aware of this and realise that they can achieve the kind of career development, financial remuneration, flexibility and work-life balance from contracting which is often difficult to achieve as a permanent member of staff.
Simply put, for financial services firms in the midst of business transformation projects, relying on permanent hires is unrealistic because of time pressures and regulatory change in the industry. Contractors offer the opportunity to invest in a resource for a specific and controllable period of time.
Mike Stirton is associate director, specialist contractors, financial services at Change Recruitment in Edinburgh
