Consultant vs permanent employee in the Belgian public sector: why choose an external consultant?

When a Belgian public institution seeks to strengthen its team, it has two main options: to hire a permanent employee or to engage an external consultant. Although each option has its advantages, the use of external consultants is becoming increasingly popular due to the numerous operational, strategic, and financial benefits. Let us examine these advantages in more detail.

Operational Advantages: Flexibility and Immediate Expertise

Flexibility and Adaptability

Consultants offer unparalleled flexibility. Institutions can hire them for specific projects or one-off needs without the long-term commitment of a permanent contract. This allows the organisation to quickly adapt to urgent or specialised needs, such as public procurement management, short-term project execution, or internal process auditing.

The consultants are immediately operational thanks to their specialised expertise, which reduces the integration time. Unlike permanent employees, who often have to go through a process of adapting to the tools and culture of the institution, the consultants arrive ready to contribute, thus ensuring faster results.

Immediate access to specialised skills

Consultants bring high-level skills acquired from various sectors, enabling them to respond quickly to specialised needs. For example, a public procurement consultant can immediately manage tenders, negotiate contracts, and ensure compliance with regulations.

Strategic Advantages: Innovation and Process Optimisation

Access to Cutting-Edge Knowledge

Hiring a consultant allows the institution to access cutting-edge expertise in areas such as legal compliance, public procurement, and the management of complex projects. These experts provide innovative solutions and are often able to optimise internal processes. For example, a consultant can identify opportunities to improve purchasing methods to reduce costs and enhance efficiency, thereby contributing to better resource management within the institution.

Financial Benefits: Reduction of Indirect Costs and Optimisation of Expenditures

Direct Costs vs Total Costs​

Although a consultant's fee may seem higher at first glance, the indirect costs associated with a permanent employee—such as social security contributions, fringe benefits, training, and absenteeism—quickly increase the total cost for the employer. For example, the total annual cost of an employee in the public sector, including social charges, benefits, and indirect costs such as absenteeism, can average 74,010 EUR (source: Liantis). 

In comparison, an external consultant charges an average daily rate of 750 EUR/day, which amounts to an annual cost of 165,000 EUR (assuming 220 working days). Despite a higher initial cost, consultants do not incur indirect costs such as absenteeism, employee benefits, or training for permanent staff.

Absenteeism: A Major Indirect Cost​

Absenteeism represents a significant indirect cost. According to Securex, absenteeism in the public sector can cost around 2,500 EUR per employee per year, taking into account the loss of productivity and the costs associated with temporary replacement. Consultants, being independent, do not generate this type of cost, which makes them financially more attractive.

No Costs Related to Training or Integration

Consultants are experts in their field and generally arrive ready to work. Therefore, public institutions do not have to invest in long and costly training or integration programmes. This helps to reduce the infrastructure and administrative management costs associated with a permanent employee, who, on average, represents a burden of 5,000 to 7,000 EUR per year for a Belgian public institution (source: StepStone).

Return on Investment (ROI): The Financial Impact of Engaging an External Consultant

One of the major advantages of using an external consultant lies in the return on investment (ROI) it generates for the public institution. Although the immediate cost of a consultant may seem higher than that of a permanent employee, it is essential to consider the overall impact on performance and long-term costs.

Cost Optimisation and Increased Profitability​

Consultants provide specialised expertise that enables the quick resolution of complex problems, optimises processes, and reduces management costs. For example, in the field of public procurement, an experienced consultant can optimise the tendering processes, identify more competitive suppliers, and thus achieve direct savings. According to McKinsey & Company, organisations that engage consultants specialised in procurement optimisation have seen a reduction in their costs ranging from 5 to 15%, which can have a significant impact on the budget of a public institution.

Flexibility and Resource Adjustment

Unlike permanent employees, who are fixed and incur fixed costs (salaries, benefits, social charges), consultants offer optimal flexibility. They are engaged for specific assignments and can be easily adjusted according to the actual needs of the institution. This model allows for a more agile management of human resources and avoids the salary overload associated with permanent recruitment for temporary needs. According to Accenture, this flexible approach significantly reduces indirect costs (such as absenteeism, social charges, or training expenses), while enabling a quick return on investment (ROI).

Best Long-Term Performance

By engaging a consultant, public institutions benefit from a strategic transformation. A consultant can not only improve the immediate efficiency of processes but also introduce sustainable practices and innovative solutions that will lead to long-term savings. For example, optimising administrative processes and financial flows can reduce errors, enhance compliance, and generate financial gains over several years. According to a study by Boston Consulting Group, organisations that integrate external consultants for strategic projects report an average ROI of 4 to 8 times their initial investment.

Conclusion: Why Choose an External Consultant?

Hiring an external consultant offers numerous advantages, both operational, strategic, and financial. Despite a higher daily rate than that of an employee, the consultant provides greater flexibility, immediate specialised expertise, and significant savings on indirect costs, such as social charges, absenteeism, or training costs.

In the long term, public institutions can therefore benefit from more agile and cost-effective management by choosing consultants for specific missions, while reducing the unexpected costs associated with permanent employees.

• Source : McKinsey & Company - Achieving Procurement Excellence: McKinsey - Procurement Excellence
• Source :Accenture - The Impact of Flexible Workforce Models: Accenture - Flexible Workforce Models
• Source :Boston Consulting Group - Consulting for Strategic Transformation: BCG - Strategic Transformation
• Source : Liantis - Combien coûte un travailleur ?: Liantis - Coût d'un Travailleur
• Source : Securex - L’absentéisme et ses coûts dans le secteur public: Securex - Coût de l'Absentéisme
• Source : StepStone - Salaires dans le secteur public en Belgique: StepStone - Salaires Secteur Public Belgique