Hiring the right people is crucial to business growth. You need to have the right team to carry out the job well, or your business could suffer. But how do you choose the right person for the job? Companies can choose between two different types of workers: regular employees and contractors. This article will discuss the advantages and disadvantages of hiring two kinds of workers and how to choose the right people to work with.
Pros and Cons of Hiring Employees
Employees are permanent members of your organization and are covered by employment and labor laws. It’s important that you know how to classify your workers, or you’ll be in trouble with the IRS. Some companies disguise their employees as independent contractors or freelancers to get away with paying for insurance, healthcare, and other benefits.
While the benefits of hiring contractors outweigh the advantages of hiring employees, there may be instances where it’s beneficial for a company to hire regular employees. Below are some of the benefits of working with regular employees.
Long-term Commitment and Loyalty
When treated well, employees are more likely to stay longer with the company. Compared to contractors, they can help create awareness for your brand, and you can depend on them during work emergencies such as completing heavy workloads. Contractors may ask for higher fees if you need urgent help.
Consistency
If you’re looking for a reliable team to work with you for years, then it’s best to hire employees than contractors. This way, you won’t have to keep looking for new talents or negotiating contracts, as it can waste time. With employees, you can control their schedule and ensure that the work is completed correctly.
Security
Should you decide to take time off from work, you can trust that your employees will continue working. There’s no need to closely monitor them as they are likely highly motivated and willing to contribute to the company’s objectives.
What are the disadvantages?
It will cost you more to hire employees than contractors or freelancers. Because they are covered by labor and employment laws, you’ll have to comply with the state’s requirements regarding employment. You’ll still need to pay your employees when there’s company downtime.
When to Hire an Employee
Consider hiring employees if you’re looking for people who can grow with your company and become highly knowledgeable about your products and services. While there are competent freelancers that can sell, they will not be as committed to the company. An example is when you’re looking for salespeople. It takes a lot of commitment to keep a sales job, and contractors may suddenly leave if they don’t get commissions.
Pros and Cons of Hiring Contractors
Contractors are usually business owners themselves, are self-employed, and pay their own taxes. They earn a living working with one or multiple clients, usually on a per-project basis. One of the biggest benefits of hiring contract workers is having access to global talent. You can source talent from literally anywhere in the world, giving you a bigger pool to pick from. However, we recommend that you utilize a staffing agency as they have experience picking the best talent for your company. Below are some of the benefits of hiring contractors than employees:
Savings
One of the reasons companies prefer to hire contract workers over in-house employees is that it saves them money. You’re not required to pay for employee benefits and other perks that most employees enjoy with contract workers. While you may pay more per hour to some freelancers, you get to save money in the long run as there are no additional expenses other than the salary or wages you pay.
Flexibility
You can assess their performance when the contract ends because you’re hiring them on a project basis. You simply don’t hire them back if they are not a good fit. With employees, it can be difficult to let them go.
Skilled Workers
Sometimes, it can be wiser to hire contractors than in-house employees, especially regarding the skills needed to complete the tasks. Most contractors already have years of experience in the industry and will not require additional training. You also won’t need to spend more money training these contractors — they can immediately get started on the task.
Disadvantages of Hiring Contractors
And below are the disadvantages of hiring contract workers:
Temporary Staff
While contract workers are highly trained and skilled, some are not as loyal as in-house employees. And because they don’t have a regular employment contract, they may choose not to continue with the project, especially when they work for multiple companies or when they find something better.
Less control
While you can always give them suggestions on completing the task, you may not be able to closely monitor how your contract workers perform their job. If the task needs close monitoring, we suggest that you hire regular employees instead.
When to Hire Contractors
Consider hiring contractors when you need tasks that don’t need a lot of supervision or when it’s a short-term project. For example, You are a startup and need a professional-looking website. There’s no need to hire regular employees as you will likely need this service just once. Hire freelancers for services that you don’t need regularly. You only need to hire employees when you need help with the same task regularly and over a long period of time.
There’s also no need to hire regular employees for seasonal work. Hiring contractors is the way to go if you just need them to complete a project for a few months.
Ready to Hire Workers?
Whether you’re looking to hire freelancers or full-time employees, we can help. Our team of experienced professionals is highly skilled at picking the right talent. Our goal is to help businesses get reliable and competent workers to help your company grow. Talk to us today so we can discuss your staffing needs.
