If you’re trying to decide between hiring an employee project manager for your medical device company or bringing in a consulting project manager, you’re not alone. As the CEO of a company that provides world-class medical device project managers, I have talked to people struggling to decide between the two. While most people lean towards hiring an employee project manager, it’s important to consider both sides of the equation. There are a lot of factors to consider, and both options have their own set of pros and cons. Let’s break it down in a way that makes sense.
How to decide between hiring an employee project manager vs a consulting project manager: pros and cons
The pros of hiring an employee project manager for your medical device company
In other words, why should you hire an employee project manager for your medical device company?
You can hire internally:
Right-fit, skilled employees can be promoted or transferred from within your company. They already understand the company’s culture, goals, and existing projects. This internal hiring can also lead to quicker onboarding and alignment with company objectives. Plus, it fosters a sense of loyalty and growth within the team.
Long-term fit:
Employees tend to be around for a long time, which is great if you’re looking for someone to really understand your business inside and out. They get embedded in your company culture and know your processes, which can be a big plus for a medical device company with its quality controls and management systems.
Although, given that the loyalty between companies and employees isn’t what it used to be, hiring a consultant today isn’t as different from hiring an employee as it once was.
Costs less:
On an hourly basis, an employee might cost less compared to a consultant. Plus, they fit right into your existing salary structure. Over the long haul, this can save you some cash, especially if you’re working on a big project that will take time.
More control:
When you’ve got an employee, you’ve got more control over how they work and how they manage the medical device project. You can also tailor their training and development to fit your company’s needs.
Company secrets stay within (the company):
If an employee leaks secrets, they get fired. Simple as that. So, with an employee, all those sensitive company secrets stay inside the company. There is less chance of a leak, which is always a good thing.
Recruit a right fit project manager for your medical device company
The cons of hiring an employee project manager for your medical device company
In other words, why shouldn’t you hire an employee project manager for your medical device company?
Higher overhead:
On an hourly basis, an employee might cost less compared to a consultant. But remember, the real cost isn’t just their salary. As one of our clients put it, “If you’re paying somebody a hundred thousand dollars a year, the real cost to the company is more like $140,000 due to things like desk space, air conditioning, and medical expenses.” This is what we call the burdened labor cost.
Harder to remove:
If the employee isn’t cutting it, letting them go can be a bit of a headache. You’ve got to go through all the formalities and documentation—it’s not a quick process.
Limited experience:
An in-house project manager might only have experience with your industry or company. That’s fine, but it can be limiting if you need fresh ideas or new approaches.
Fractional work is hard to find:
Need someone part-time? Good luck finding an employee who fits that bill. It’s tough to find someone who’s available just for a few hours a week. As one of my colleagues joked, “It’s hard to find a 40% employee—they’re typically shorter.”
Need a 40% employee for your medical device project?
The pros of working with a consulting project manager for your medical device company
In other words, why should you work with a consultant project manager for your medical device company?
More experience:
Consultants usually come with way more experience, especially across different industries and companies. That’s invaluable when you need to tackle something unique. They also bring in a fresh perspective that can identify the “Achilles heels” of a medical device project or company—those damaging habits or blind spots within a company that aren’t always visible to those on the inside. Consultants, with their broad experience, can spot these issues and help course-correct.
Cost-effective and efficient:
They might cost more upfront, but they’re often way more efficient. One good decision from an experienced consultant can easily cover the extra cost. You pay them only for the time they’re working on your project—no overhead, no extras. They typically don’t have to go through as much training, so they can hit the ground running and get things done faster.
As one of my former partners put it, “One really good decision typically pays for the consultant’s extra cost.” Because they’re experienced, they’re way more likely to make at least one really good decision, which can act as an insurance policy for your project.
No workers’ comp or HR issues:
If a consulting project manager isn’t working out, you can part ways quickly and cleanly. This flexibility makes it easier to adjust your project team as needed without the hassle of traditional employment issues.
Less risk with confidentiality:
Consultants have a lot at stake with their reputation. If they leak your secrets, it’s game over for them—no one will hire them again. So, they’re usually extra careful.
You can rehire them
A medical device consultant can leave your project and come back quickly if needed, even just to train the next person. This isn’t often the case with employees, who, once they leave, are usually gone for good.
The cons of hiring a consulting project manager for your medical device company
In other words, why should you NOT work with a consultant project manager for your medical device company?
More expensive:
Consultants are more expensive per hour than employees, which can add up if the project runs longer than expected. But, considering the expertise they bring, that higher cost can be worth it if it means the project is a success.
Not always a cultural fit:
Consultants are outsiders, so they might not fully understand your company culture or how things work internally. That’s not always a big deal, but it can be if you need someone who’s really in tune with your team.
Temporary presence:
Consultants are usually in and out—they’re there for the project, then they’re gone. If you need long-term support, this might not be the way to go.
The bottom line, choosing between an employee project manager and a consulting project manager comes down to what your company needs right now.
If you’re looking for someone to be around for the long haul, someone who fits right into your company culture and costs less over time, an employee might be your best bet. But if you need expertise, flexibility, and efficiency, and you don’t mind paying a bit more upfront, a consulting project manager could be the way to go.
It’s all about balancing the pros and cons to find what works best for your business.
If you need help choosing the right person to manage your medical device projects, we are just a phone call away.
From interim executives to staff placement, Waddell Group’s resources can be engaged on a full-time or fractional basis, with contracts measured from weeks to years. Our expert project managers and medical device consultants deliver your projects on time and within budget.
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