The Pros and Cons of Hiring an Independent Contractor vs an Employee
Understand Your Hiring Needs
Today, there are many options for finding and engaging talent for your workplace. You can hire temporary workers to fill a seasonal or short-term need, full-time employees to support core organizational goals, or independent contractors for high-value projects. While there are rules and regulations that govern the engagement of each type of worker, there are also practical applications to consider.
All of these types of workers can fulfill a role in your company, but there are many times where the best talent for the job is an independent contractor.
Understand the Difference Between a Contractor vs Employee vs Temp
Before you decide which type of worker to engage, you should understand the differences between each. Here some key differentiators. You can find the complete list in our guide.
• Works for a single employer
• Employer dictates and controls work performed
• Employer determines hours and location of work
• May be hired directly or retained through a third-party intermediary such as a staffing agency
• May be seasonal or part-time
• Can participate in employer’s pension plans after performing 1,000 hours of work in a 12-month period
• Operates as an independent business
• May have their own business name
• May perform work for multiple clients
When to Hire an Independent Contractor
When considering whether or not to engage an independent contractor versus a temporary or full-time employee, there are 8 questions to consider, including
- Is the project an ongoing business need?
- Is the project or work a core competency of your company?
- Is there flexibility in how and where the work can be performed?
- Does the work or project require unique skills?