At some point, every business needs to hire outside help. Most of the time, hiring managers jump to a direct hire rather than considering the benefits of hiring a contractor or a freelancer. Although they may be harder to find than a candidate open to a direct hire, there are several positive aspects of hiring contractors that aren’t available when hiring full time employees.
Save Money
With permanent employees, you sign a contract and commit to pay them a certain amount no matter the circumstances. If you’re a small or growing business this can be hazardous without an established and steady cashflow. With independent contractors, if the workload decreases, you can create shorter contracts or simply hire them on an hourly basis, based on how long it takes to complete the work rather than a full salary. Hiring a perm employee, there is also a high risk that the employee won’t work out, costing you even more to backfill the position, with contractors you can choose not to use them again for future projects.
Less Hassle
Contractors generally cost more per hour than permanent employees but hiring a contractor frees you from the intense hiring process and administrative troubles. For example, you are obligated to set aside income taxes and in some states you may be required to provide healthcare and benefits. In general, contractors are either paying for their own taxes and health insurance or is done so by a staffing firm. This saves you a great deal of time and money.
Flexibility
Contractors can provide a type of flexibility that you may not be able to have with perm employees. Contractors often work from home or remotely, which saves space in your office. They are also often required to work odd hours which can come in handy for your business when your permanent employees are unable to work quirky hours. Additionally, contractors can be hired on a project basis so you are only paying them when you have work to be done. You can create a contract for one week or one year, any length works and this is a great way to maintain flexibility with your staff and cashflow.
Also, in a recent study, freelancers have been surveyed as happier and healthier than permanent employees. Don’t believe us? Check it out!
Looking to hire a contractor for a project? We can give you the top talent in Minneapolis! Contact us today.
