Blended Tech Teams: How to Effectively Combine Permanent and Contract Resources

In today’s world, tech teams need to be adaptable and resilient to keep up with the fast-paced nature of the industry. This means being open to different working models for maximum results. One of the most effective ways to achieve this is to build robust and effective blended teams, combining permanent employees with contract professionals. 

Done right, this approach brings together talented individuals with different working patterns – full-time and part-time, permanent and contract – collaborating to maximise output, balance costs, and bring fresh expertise to every stage of your development cycle. 

In this blog, we’ll explore the benefits of a blended workforce, what both permanent and contract talent bring to a business, and how to ensure equality across the entire team.  

Why Blended Teams Work

When we talk about a blended workforce, it’s not about filling the gaps or plugging holes in a team. It means strategically and deliberately building high-performance teams using the best combination of individuals to meet business goals.

When are blended teams a cost-effective and productive solution?

• Scenario 1: A product launch or system upgrade might demand an increased headcount for a time-limited period; bringing in relevant contract hires to support the existing team can enable you to cover this short-term business need effectively, without adding to your permanent staff. 
• Scenario 2: There’s budget available for a specific project, but no scope for long-term hires, working with contractors can deliver fast-paced progress to meet demanding deadlines.

There are some key benefits to embracing a blended workforce model, including: 

• Sharing and transferring of knowledge – Contractors bring in-depth expertise and a fresh perspective, having worked across a wide range of different projects and teams. This enables permanent staff to upskill and develop broader perspectives. 
• Building diversity – Blended teams can enhance diversity, fuelling innovation through creative problem solving and idea generation. 
• Capturing different skills – Using contract hires enables you to invest in skills required for a project or to temporarily increase headcount without a long-term commitment in terms of salary and benefits. 
• Growing future operations – Investing in the right permanent staff pays off through long-term retention, enabling internal business growth. Getting the right balance between permanent and contract hires is key to being cost efficient and optimally productive.

The Strength of Permanent Employees 

Permanent staff form the backbone of any high-functioning software team. Why permanent staff are critical to business operations: 

• Knowledge – Employees harbour deep company knowledge, understanding the systems, culture, products and customers intimately. 
• Consistency – Permanent staff help retain cohesion and consistency across projects, maintaining essential momentum across development cycles. 
• Loyalty – Investing in the career growth of long-term staff builds loyalty and commitment, which in turn improves retention and shapes leadership within a company. 
• Forward Thinking – Skills, knowledge and investment drives future innovation and growth, with reliable people to help steer business goals in the right direction.

Of course, it’s all about balance and there are logistics to consider when it comes to finding the right level of permanent vs contract resources. Permanent staff, especially at the top end, often require a three-month notice period, which may limit flexibility and responsiveness during urgent project phases. Focus on creating and investing in a core, permanent and reliable team, then add in contract hires on top. 

Add Value With Contractors 

Successful contract hires can build out a team and address shortages. Why contractors are a valuable addition to software teams:

• Immediacy – Contractors can be brought in-house quickly, offering on-demand expertise to meet a project’s needs or to fill a short-fall when more people are needed. 
• Fill Gaps – Contract hires can address short-term workload surges or knowledge gaps, whether planned for or to meet unexpected needs that crop up during a project. 
• Niche Skills – When you need niche skills for a project, it takes time to grow and develop these internally, while a contract hire brings that expertise in straight away. 
• Improved Outcomes – The right people can help accelerate delivery timelines and meet an immediate need. 
• Skill Sharing – Highly skilled contractors can help to increase the knowledge of the internal team. 
• Diversity – Using contractors increases the diversity of the team, improving outcomes and developing new solutions.

Some companies are hesitant to bring in contractors to work alongside a permanent team, which may in part be due to misconception around IR35 regulations. Working with a recruitment partner can help mitigate these risks and address any concerns, while sourcing the right contractors to meet requirements. Another concern can be around continuity and alignment with business goals, as well as reliability, but there are ways to ensure that contract hires are an asset and good strategic decision. We advise looking for contractors who have been extended in previous companies beyond their initial term – 72% of the contractors we’ve worked with have been extended or redeployed, a good sign of their skill, commitment and consistency.

Create Equality Within a Blended Team

The key to success in a blended team is to ensure both clarity and inclusivity. 

• Clear communication – being transparent and ensuring that all team members, regardless of contract type, are aligned on goals and timelines. 
• Defined roles – Both permanent and contract individuals alike should have a defined role and responsibility to avoid overlap or confrontation, while maximising efficiency.

Proper integration of contract hires into permanent teams includes full onboarding and training to ensure everyone starts on the same page. Leadership should be willing to listen to all ideas and feedback from all team members, giving everyone a voice at the table. 

Create an inclusive culture so contract staff feel like valued team members, and permanent staff don’t feel encroached upon. Contract staff who are treated like ‘outsiders’ can become disengaged in the work, while also being unlikely to return for future projects. While permanent team members might feel their voice is getting pushed out, which can affect company loyalty. Bring all staff together for meetings and social activities to build a team dynamic that will foster an environment of respect, fairness and collaboration. 

The Future of Software Teams  

As software development becomes even more project focused, blended teams are likely to become a normal model for tech companies. Combining the long-term vision and commitment of a core, permanent team, with the responsiveness and agility of savvy contract hires, creates a dynamic and high-performing workforce.   

What the most successful tech companies do: 

• Maintain a committed, permanent core team
• Supplement with skilled contractors at the right time
• Focus on collaboration, not contract type
• Partner with experienced recruiters to navigate resource planning, compliance and delivery

A successful software team isn’t defined by employment status; rather, it’s built through strategically assembling the best people with the right balance of skills at the right time.

Need help building a blended team? At Spectrum IT Recruitment we have extensive experience in both permanent and contract hiring. If you want to find out how to build blended technical teams, speak to our specialists today to get tailored advice and candidate solutions.