The Contractor Myth: Why Permanent Isn’t Always More Secure

Many business leaders cling to the belief that permanent team members are inherently more stable or safer than contractors. It’s a tidy narrative, but one that doesn’t always hold up in today’s dynamic landscape. In most cases, security and consistency come from fit, alignment, and execution, not contract type. 

The Flaws in “Permanent = Safe” 

New Zealand’s national staff turnover rate has quietly held steady in recent years, rising from 20.5% in 2022 to 21.4% in 2023 (Public Service Commission). So while permanent team members may feel more stable on paper, the reality is that turnover remains elevated and many permanents still leave within the first year. 

Why Contractors Can Be the Safer Choice 

1. Role Fit Over Role Type Contractors are chosen for specific problems and contexts, not just because they’re available or underutilised. That focus often means faster alignment and better outcomes. 

2. Skin in the Game Their reputation, repeat engagements, and success depend on what they deliver, not just how long they stay. They will therefore be more selective in choosing which projects to take on that align with their skills and interest.

3. Rapid Deployment In cases like urgent changes or cyber threats, waiting 6–12 months for a full-time hire can be too slow. Contractors can be up and running in days or weeks. 

4. Flexible Adaptability When strategies evolve, you can adjust contracts without the overhead or process hassles of reassigning permanent staff. 

Myth Busting 

Contractors cost more per day.	True. But the total cost of mis-hiring and onboarding a permanent employee can be much higher both in time and morale.
They won’t stick around.	Contractors opt into work they’re equipped to deliver so they often stay committed longer than you'd expect.
Knowledge gets lost.	Only if you let it. Build handovers, pair contractors with internal staff, and embed documentation as part of the assignment so IP stays in-house.

Strategic, focused engagements with seasoned senior professionals or outcome focussed pods give you high-impact capability quickly, efficiently, and flexibly. 

So What? How MomentumIQ Works 

This is exactly how we operate at MomentumIQ. We engage and re-engage top professionals with proven track records to build dream teams designed around your specific project requirements. 

We’re backed by Momentum Recruitment’s 30+ years in business and a national team of high-integrity professionals, ensuring we deliver on our promise: 

• Best available in the market, not just the best sitting on the bench under-utilised 

• Teams that are context-matched, capability-led, and focused on delivery from day one 

• Engagement models that flex with your needs, single specialists or purpose-built squads 

• Work can be delivered fixed price for clear outcomes or on a time and materials basis.

Bottom Line Building and retaining an amazing team and team culture is gold, but when the stakes are high, it’s not about the contract type. It’s about the right people, in the right roles, at the right time. 

Security and consistency come from fit, alignment, and execution, not contract type. 

Explore our consulting services or book a conversation with us.