It is predicted that in the US, in two years time, the number of businesses employing contractors and freelancers will rise to 40%. And it is easy to see why; there are many benefits to hiring contractors and freelancers. But if a company only hires one or the other (contractors or full-time employees), then are they missing out on anything? If you’re starting out in business then this is a really valid question to think about. In order to understand which will benefit your business more, then you need to understand how both of them work and the pros and cons of each of them individually. So here is some more background information about them both, to help you make a more informed decision for your business.
Understanding the legal framework behind both types of working will help you to make a decision, for sure. If you need someone all of the time, then you could end up paying less in hourly wage, but not in other benefits that are accountable to you as an employee. A full-time employee doesn’t typically set their work hours. You would tell them when to work and there isn’t too much flexibility around it. A contractor would set the times that they are able to work, and that is that really.
As an employer of full-time employees, you are also responsible for things like training your team to be able to do the work that you want them to do. But if you hire contractors and freelance, then you don’t need to train them to do the job. If you needed a web designer, then you’d assign a contractor to do it in the way that you want and that is that. So it can be quicker if you don’t have employees that know how to do it. The same goes for things like construction. If you click here, for example, you may be able to see that you can hire construction workers to get something specific done and then that is all. Hiring a team full-time to do the same job would mean paying them even when they’re done and are waiting for the next work assignment.
As an employer, you would decide the workday for your team of employees and set what needs to be done and when. But with contractors and freelancers, they will work with the tie that they have and organize their own work day. As long as deadlines are set, then they can do whatever hours to get it done for that time. So for freelancers and contractors, that does offer greater flexibility. As an employer, you will also be responsible for the wellbeing of your team and providing somewhere safe for them to be. Contractors and freelancers will often be responsible for their own workplace or office, unless they come on to your premises.
Deciding which type of employer you will be can be key to your business success. You don’t want to hire a full-time assistant if you’re not yet at the point of needing one all day every day. So it may change as your business progresses. But getting it right can save you time and money.