Full-Time vs. Contractor – Who’s the Right Fit for Your ERP Implementation?
Finding the right talent for the complex task of ERP implementation can feel like an all-or-nothing choice between a long-term partner or a short-term fix. Do you bring in someone full-time to manage the entire process from start to finish and beyond? Or do you hire a contractor who can swoop in, handle the critical tasks, train your team up a bit, and then move on?
Over the past 20 years doing staffing & recruiting in the ERP ecosystem, we’ve seen the pros and cons play out again & again when comparing hiring full-time employees versus contractors. So let’s explore them so you can make the best decision for your ERP project and team.
ERP Implementation is Complex
An obvious statement, to be sure, but no less valid. ERP systems (Acumatica, Sage Intacct, Microsoft D365, and NetSuite) impact every corner of your business processes, financial reporting, and even day-to-day workflows, in many cases optimizing it all. It’s not just an IT project — it’s a business transformation. We’ve helped a lot of amazing ERP Partners build out their teams over the past 20 years, so we know help is out there. That said, according to Gartner, 70% of recent ERP implementations won’t meet business goals by 2027.
The complexity comes from the sheer scope of what an ERP system does. For example, it can automate financial reporting, streamline supply chains, and even optimize customer relationship management. To do all of that, it needs to be properly configured and integrated into your business processes, which, you guessed it, can get tricky.
While many business leaders are experts in their own right, nailing down ERP selection and implementation often isn’t their thing and they often run into challenges due to:
- A lack of experience in ERP selection and implementation;
- Misunderstanding the level of expertise needed;
- Limited knowledge of the long-term support required post-implementation.
It’s not an easy decision and the stakes are high, so picking the right person (or people) for the job is crucial. No pressure, right?
Let’s compare your options…
The Full-Time Employee Solution
Hiring a full-time, permanent business/systems analyst for your ERP project can feel like the safer option, especially if you’re thinking long-term. When you bring someone on board full-time, they become fully committed to your company and can immerse themselves in your ERP system, evolving with it over time.
The Benefits
- Dedicated Resource: One of the biggest advantages is dedication as they will focus solely on your ERP project, ensuring they give it the time and attention it deserves, becoming a valuable resource, not just during implementation but also in the years to come.
- Long-Term Value: There’s opportunity for the employee to grow and there’s a chance they’ll evolve into a key player, perhaps even leading future ERP projects or taking on the role of an ERP manager.
- Deeper Integration: Employees are more likely to be or become a cultural fit as they come to understand and align with your company’s culture and goals over time, equipping them to understand your specific challenges and opportunities better than any outsider could.
The Drawbacks
- Cost: They don’t come cheap and have higher financial commitments beyond salary like the onboarding, training, and any additional benefits.
- Risk of Misfit: If the hire doesn’t work out, you’re not only out of pocket but you’ve also lost valuable time, not to mention it could open you to legal issues if you didn’t establish clear hiring contingencies.
- Limited Flexibility: Considering there’s a lower success rate (28%) from self-implementations, there’s no guarantee that a full-time employee will have the same breadth of experience as a contractor who specializes in different ERP systems.
The Contractor and Consultant Solution
The option of working with a contractor or consultant can offer a lot of flexibility, especially if your ERP project has a tight timeline or specific needs. Plus, they are often experts in their field when it comes to ERP systems, thought there are more nuanced differences between the two that we’ve covered previously.
The Benefits
- Immediate Expertise: They typically come with a wealth of experience from working with different ERP systems across multiple industries, so they can hit the ground running from day one, tackling your implementation’s most pressing challenges without the need for involved onboarding.
- Flexibility: Commitment is contract contingent, which allows businesses to scale resources up or down based on the project’s needs.
- Lower Risk: If a contractor doesn’t meet expectations, companies can end the contract and quickly pivot without the overhead of employee termination.
The Drawbacks
- Lack of Loyalty & Integration: Since they’re external, they won’t have the same level of investment in your company’s long-term goals or culture, which could result in a disconnect between short-term project success and long-term company vision.
- Knowledge Retention: According to Fivetran, 65% of companies had struggles accessing their ERP, which is a risk when contractors leave, as they take their expertise with them, creating gaps and reducing the level of ongoing ERP support.
The Hybrid Approach, or The Best of Both Worlds
Can’t decide between a full-time employee and a contractor? Maybe you don’t have to (WhyNotBoth.gif, anyone?). It’s not about hiring the most expensive consultant out there or a full-time expert, nor is it about cutting corners by choosing the cheapest contractor available. The key is to optimize the talent you bring on board for your ERP implementation.
We’ve helped a lot of companies set up this arrangement and they’ve found that a hybrid approach gives them the best of both worlds. You can blend a small, highly experienced ERP consultant or contractor with in-house staff who understand your company’s day-to-day operations. This creates a more cost-effective setup while still making sure the critical technical aspects of the implementation are handled by experts. Plus, according to Zipdo, “inadequate training” around ERP implementations is a major challenge for 27% of organizations, so a seasoned consultant can strategize with you to support and nurture your team’s adoption with the new software, easing change management.
The Benefits
- Efficient Problem Solving: The contractor’s immediate expertise can solve urgent issues, such as process mapping and financial reporting, to make sure the company is prepared for the ERP rollout doesn’t lose momentum.
- Transition Period: While contractors handle the technical heavy lifting, you can take your time simultaneously searching for the right full-time employee who will oversee the long-term management of the system instead of rushing to make a permanent hire before the project kicks off.
When It’s Useful
The hybrid model works best when your ERP implementation has both short-term and long-term needs. If your project requires rapid deployment to tackle immediate challenges (e.g., year-end closing or business process restructuring), you’re covered. You’re then better able to cover yourself for ongoing optimization and ERP support, since you can now take a thoughtful, strategic approach to hiring a permanent ERP management solution.
Factors to Consider When Deciding
Now that we’ve laid out the pros and cons of hiring a full-time employee, a contractor, or using a hybrid approach, it’s time to weigh your options. There are no “one-size-fits-all” solutions, after all. So, before deciding, here are a few questions to consider:
- What’s your project scope? Is the ERP implementation (Acumatica, Sage Intacct, Microsoft D365, or NetSuite) a one-time project, or will it need ongoing support?
- What can the company afford — both in the short term and long term?
- Does the company already have some ERP expertise in-house, or are they starting from scratch?
- Will the company need continuous ERP optimization and support as it scales?
Insights like these can be the difference between success or failure of your ERP implementation. What matters most are your priorities: If you’re looking for someone to fully immerse themselves in your company and grow with your ERP system, then a full-time employee may be the best fit. On the other hand, if you need immediate expertise and flexibility, hiring a contractor could be the most efficient solution. Or the hybrid approach lets you balance short-term problem-solving with long-term stability.
The point is, you need to take time to carefully assess your project requirements, budget, and in-house capabilities before making a decision. If you need someone to bounce ideas off of, remember that you don’t have to go it alone. Reach out to our CEO, Julian, for a free consultation to build a strategy that fits your needs.