Is It Better to Hire Employees or Independent Contractors?
When you are attempting to grow a small business, budgeting time and money effectively are both vital to success. One factor in this growth is how you move forward with hiring staff, and you may be wondering if hiring independent contractors is the better choice as opposed to bringing on traditional employees. There are pros and cons to each; however, building a solid team of contractors may help you fill project needs faster, give your workforce a greater flexibility and give you the freedom to grow your business instead of focusing solely on the management of your employees.
Hiring employees requires reams of paperwork, multiple interviews and the checking of references that may take weeks to complete. In the meantime, projects must be put on hold until you find someone qualified to fill them. If you need a project completed quickly, then hiring independent contractors is the better choice because they usually do not require a great deal of training and typically offer potential clients transparency when it comes to their experience and references. As a result, you will be able to fill positions faster with individuals who are already highly trained and experienced in areas such as social media management, web design and virtual assisting.
Having a flexible workforce allows you to grow your small business with greater ease because you can bring on or dismiss independent contractors as needed without having to worry about doling out severance pay or dealing with irate ex-employees you were forced to lay off. Contractors work on an as-needed basis, and when projects are complete, you can either shift them to other projects or release them until you need them again in the future. Many contractors who work independently are open to working for clients on a repeat basis, and this means you will have access to talented individuals when you need them instead of having to seek out new employees all the time. In fact, when you build a team of contractors that possess a variety of different talents, you can turn to it as you need work completed and potentially save a great deal of time and money.
While independent contractors can be a boon for you as a small business owner, it is important to remember that they may not be the best fit for every situation. As you put together a workforce, consider your needs for the present and goals for the future in order to make the best decision possible for your business.