Pros and Cons of hiring Contractors Vs Full-time Employees
by Roz Ingram
There are pros and cons to hiring both full time employees and independent contractor’s. You’ll need to assess your own business to determine what is best for you. Here are a list of pros and cons to help you make the right decision.
Advantages to hiring full time employees
When you take on full time employees they will work for you for thirty hours a week or more, any less would make them part time employees. The advantage of this type of relationship to the employer are:
- They often feel pride in their position in your business. They get satisfaction out of being part of a team and working somewhere they feel comfortable and have job security.
- The hourly wage for an employee is generally much less than a freelancer.
- You know that you always have employees that you trust and can rely on when you need them. You can delegate tasks permanently which frees up your time to do the jobs that are important to you.
- You don’t need to continually train new staff on how you like things done.
Disadvantages to hiring full time employees
- They generally expect benefits such as holiday, sick and maternity pay.
- You will always have salaries to pay, even if your business is having a quiet period.
- You’ll have specific payroll paperwork that is legally required.
- You are responsible for your employees’ training and professional licensing requirements.
Advantages of hiring independent contractors
- Independent contractors will usually cost you more per hour but can save you money in the long run because you aren’t required to pay them benefits or pay them to work when they are not needed.
- If you hire an independent contractor and they are not a good match, you don’t hire them again. You are not making a long term commitment.
- You can hire someone specifically for the task at hand by contracting someone with a specialized service.
- They are responsible for their own permits and professional licenses.
Disadvantages of hiring independent contractors
- You may not have the same amount of control as you would with a full time employee. They will often run their business their way.
- They do not have the same sense of company loyalty as a full time employee and do not feel like they are a part of your staff.
- They will not promote your brand, but their own. Their work is done under their business name, with their logos, etc.
About the Author
Source: Pros and Cons of Contractor?EUR(TM)S Vs Employees
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