By Joyce Teo

SINGAPORE firms keen to keep costs down in these grim economic times are increasingly willing to sign up key finance professionals on temporary contracts instead of hiring pricey full-time staff.
Such hired guns can be taken on for specific periods to boost the existing talent pool, aimed at specialised tasks and then let go when the job is done.

That means more bang for the corporate buck and fewer high-priced executives sitting around twiddling their thumbs in a slow economy.

Singapore has emerged as the world's most enthusiastic backer of this form of 'hit and run' employment, according to a global survey by recruitment agency Robert Half International.

Firms here see it as a viable alternative to soaring human resource costs amid challenging market conditions, it said.

Deploying immediately available contract staff to work on certain projects is a 'flexible, strategic staffing solution in these current economic times', said Robert Half director Tim Hird.

The survey of 4,948 finance and human resource managers in 17 economies found that 52 per cent of Singapore companies see hiring senior-level finance professionals on contracts as a good solution in a slowing economy.

Hong Kong was second on 46 per cent with Brazil next on 37 per cent.

Overall, about 88 per cent of the companies polled in Singapore and Hong Kong said they will hire senior contract professionals, compared with just 29 per cent in Japan, 64 per cent in Australia and 68 per cent in Britain.

These professionals can include finance directors, account managers or interim finance controllers. They are typically hired for shorter- term jobs where they manage or support companies through periods of transitions, change or crisis management.

Mr Hird said: 'With payroll costs accounting for about 40 per cent of a company's fixed costs, many firms have become more cautious about increasing their permanent headcount.

'Contract professionals offer a cost- effective solution...and are a viable way to optimise human resource costs in the current downturn.'

Singapore firms see differing benefits: 48 per cent believed hiring top professionals on contracts could help them gain immediate access to specialist skills, while 20 per cent said it would help with costs.

Mr Hird said: 'Companies can benefit from the added objectivity these consultants bring to their projects, as well as more effectively manage their costs.

'Our clients have engaged such professionals for change management projects such as systems replacement, management strategy overhaul and even crisis episodes. Typically, they are brought in for specific projects or peak activity periods, making their engagement a variable rather than a fixed cost.'

The survey found that 58 per cent of Singapore companies would hire these professionals for their expertise in strategic projects, while 34 per cent would take them for support on core business activities.

Robert Half pointed to one firm - IMS Health Asia - that has used the approach successfully to fill a position for a short- term project.

IMS executive Leigh Jason said: 'Utilising this targeted approach, we were able to plug the resource into the project with minimal ramp-up time and realised immediate productivity.'

This article was first published in The Straits Times on December 11, 2008.