Choosing between an in-house full-time employee (FTE) or a consultant subject matter expert (SME) can be a daunting decision for any company, especially in the complex world of fintech. This blog will break down the key factors to consider, when each option might be best, and where the roles overlap.
Understanding In-House FTEs
In-house full-time employees are permanent team members who work exclusively for your company. They bring long-term commitment, develop a deep understanding of your company culture, and are fully integrated into your organisation’s processes.
Having an in-house FTE means you have someone who can grow alongside your company. They’ll develop a comprehensive understanding of your business, including its long-term goals and the intricacies of day-to-day operations. This kind of deep integration can be invaluable, particularly in a fast-developing sector like fintech.
Building a team of in-house FTEs can also foster a strong sense of unity and loyalty within the company. These employees are often more engaged and invested in the company’s success. The commitment they bring can translate into higher productivity and a more collaborative team environment.
However, hiring in-house FTEs can be a significant financial commitment. Salaries, benefits, and ongoing training are costs that add up. For startups or small businesses, this can be a substantial expenditure, sometimes making it impractical early on in the business journey.
Understanding Consultant SMEs
Consultant subject matter experts are hired on a temporary or project basis. They provide specialised knowledge and expertise, often offering fresh perspectives and solutions that might not be available within your in-house team.
One of the key advantages of hiring a consultant SME is flexibility. These experts are available on tap, allowing you to scale their input up or down based on your current project needs. This can be particularly beneficial for addressing specific challenges that require a high level of expertise, such as complex fintech subject matters or innovative technological implementations.
Consultant SMEs often have many years of experience, often having worked across multiple industries and projects. This broad perspective enables them to provide insights that can save your business weeks or even months of iteration and refinement. By leveraging their seasoned expertise, you can accelerate project timelines and improve overall performance.
Moreover, the temporary nature of consultant SMEs can also be a financial boon. Without the need for long-term commitments, companies can manage costs more effectively, investing in top-tier talent only when it’s absolutely necessary. This can be a savvy strategic move, especially in the early stages of a business when resources are often limited.
When to Choose an In-House FTE
Opt for an in-house FTE when your budget allows, and when you are established enough to look ahead at long-term stability, continuous contribution to the company’s growth, and someone who can be fully aligned with your company’s goals and operational practices.
In-house FTEs are particularly valuable for roles that are critical to the core operations of your business. For instance, in the fintech industry, positions related to credit risk management, operational strategy, and legal compliance often benefit from the consistent presence of a dedicated team member.
These permanent employees can also be essential in fostering an internal culture of collaboration and innovation. They’re more likely to engage in team-building activities and long-term projects that require a deep understanding of the company’s mission and values.
When to Choose a Consultant SME
Hiring a consultant SME is ideal for specific projects or periods of growth that require unique expertise, quick problem resolution, or when you need insights into the latest industry trends without committing to a long-term hire.
Consultants can be particularly beneficial during periods of transition or growth. For example, if your fintech company is developing a new product or expanding into a new market, a consultant with specialised knowledge can provide the necessary expertise to navigate these complex processes efficiently.
Additionally, consultants can offer a fresh perspective on existing challenges, often presenting innovative solutions that might not be evident to those deeply embedded in the day-to-day operations. Their ability to remain objective and offer unbiased advice can lead to transformative improvements in business performance.
For companies growing quickly, looking for immediate firepower and expertise, (perhaps balancing multiple projects), the flexibility of consultant SMEs is invaluable. They can be brought in as needed, providing just-in-time expertise without the overhead of a permanent salary, making this option both cost-effective and efficient.
Overlap Between In-House FTEs and Consultant SMEs
Both in-house FTEs and consultant SMEs can bring valuable knowledge and skills to your team. They can work together closely to transfer knowledge, provide mentorship, and enhance overall team performance.
An ideal scenario might involve using both types of talent synergistically. An in-house team ensures continuity and deep understanding of the internal processes, while consultants bring in the fresh expertise and innovation needed to tackle specific challenges. Together, they can foster a dynamic and robust operational environment.
Consultants can also play an essential role in training and mentoring in-house staff. Often having been senior leaders and managers in the past, by transferring their specialised knowledge, they help build a stronger and more diversified internal team, ultimately reducing reliance on external expertise over time.
Key Factors to Consider
Consider factors such as cost, project duration, required expertise, and how critical the role is to your company’s day-to-day operations when deciding between an in-house FTE and a consultant SME.
The long-term financial implications are a crucial consideration. While in-house FTEs require a significant upfront investment, they offer stability and long-term value. On the other hand, consultants provide high-level expertise without the long term cost and development commitment, making them a cost-efficient choice for shorter-term or highly specialised projects.
The nature and duration of the project are also critical. For ongoing operational roles that require consistent input at a highly specialist level, an in-house FTE might be the better choice. However, for a project demanding specialised skills, perhaps oversight or a function or department, consultant SMEs can deliver the expertise needed with a lot more control and flexibility.
Ultimately, the decision will also hinge on the immediacy and nature of the need. Consultants can often be brought in more quickly than recruiting and onboarding a new full-time employee, providing an agile solution when time is of the essence.
At WorkCap, we offer a range of solutions to meet these varying needs. Whether you require long-term support through an in-house FTE or specialised knowledge from a consultant SME, our team can help you navigate these decisions with confidence. Explore our services to find the best fit for your business.
Making the Right Choice for Your Team
Deciding whether to hire an in-house FTE or a consultant SME depends on numerous factors, such as the specific needs of your project, budget, and long-term goals. By carefully evaluating these factors, you can make an informed decision that will best support your fintech operational and strategic objectives.
