Contractors versus Employees

by | Mar 9, 2021 | 0 comments

Which one is the best choice for your business?

Decisions, decisions, decisions! We either worry we won’t make the right decision or question if we’ve made the right one. I have spent hours wondering what the best choice for my business is, going through every possibility and situation under the sun!

When it comes time to make a decision around the recruitment options for your business, the contractor versus employee dilemma arises. You may go down the path of employing a casual, part-time or full-time employee, or instead go the contractor route.

Whatever you choose, it is important to remember what may work for other businesses may not necessarily work for yours. I always like to think about what will align best with my business. Yes, it’s great to find inspiration from others, but if you don’t reflect on your values and mission, your ‘why’ could be lost in the process.

With IM Business Solutions, I want to select the option that will give me the best possible outcome, and I’m sure you do for your own business too. If you are unsure which is the ideal option for you, these explanations of pros and cons will help you make that ever so important decision.

Contractors

Pros
Contractors are a fantastic way to save money for your business. Although you may end up paying more per hour for a contractor, there are no obligations of paid leave, employee benefits and equipment needed to perform a job.

Additionally, you can enjoy greater flexibility with contractors. As those busier months creep up on you, you may consider contracting as an option to relieve the workload.

Cons
Contractors often have more control and freedom over the work they complete, meaning that the final outcome may not align with that vital vision you have created for your business.

Another disadvantage of recruiting contractors is that they can have less company loyalty to you. As contractors are flexible and generally work with multiple businesses, work may not be prioritised at the same level of effort and dedication compared to an employee.

Employees

Pros
Employees help to form a stable, loyal and committed team that we all dream of. They will be immersed in your company culture as they work towards common goals and are more likely to be invested in your business’ success.

Your amazing employees are a long-term investment. Over time, your employees become ‘gurus’, as they learn the many processes, procedures and systems within your business.

Cons
Unlike contractors, you must invest in your staff. With hiring employees come those additional expenses and you must be able to account for salary, insurance, equipment, training and much more.

Also, you may end up hiring someone that is not the right fit (oh no!). This can lead to unnecessary issues in the long term and misuse of your hard-earned business resources.

Remember to always consider what will work best for you, your business and your needs. Get in touch with IM Business Solutions should you need any advice or support for your business.

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