The Benefits of Hiring Independent Contractors
So, should you hire an employee or independent contractor? This is a question that many small-business owners face on a regular basis and depending on your choice, you could end up spending more money and energy than you would prefer. Temporary contractors provide you with the same services as employees, but they do not require the same treatment. If you are considering hiring an independent contractor for a specific project, you will surely gain access to a variety of benefits.
When you hire independent contractors, you can expect to save a noticeable amount of money. Most employers pay contractors higher salaries than regular workers, but you do not have to provide employment benefits. This means that there is no need to pay for health insurance, social security and Medicare, or worker’s compensation. These expenses can be a huge strain on your budget, but they can be avoided with contractors. If you are looking to save money, hiring a contractor is definitely the way to go.
Companies that hire independent contractors have increased flexibility. This means that you will be able to fire, layoff, and hire workers with greater ease than you are used to. You will also have the ability to hire a contractor for a single project and release them once it is done. From a legal perspective, this can also help you avoid the emotional issues and potential lawsuits associated with having to terminate employees. Contractors can also provide your company with specialized knowledge, meaning that there will be no need to extensively train your workers.
Avoid Lawsuits and Federal Employment Laws
There are also legal benefits to hiring contractors. First of all, you do not have to pay minimum wage or overtime wages. There is also no need to worry about unions or vacation days with temporary workers. Since you don’t have to adhere to a myriad of employment laws, you can easily terminate a contract worker if he or she does not adequately perform the job. Contractors are also unable to sue you for wrongful termination or discrimination, so you will never have to worry about the threat of litigation.
Making the Right Decision
In short, there are many benefits to hiring independent contractors. If you are looking to save money, or you simply need more flexibility, you may want to refrain from hiring regular employees. Your hiring decisions should depend on your own unique organizational, financial, and personal needs. By considering these needs, you will undoubtedly make the right choice for your business or corporation.