Full-time Employees or Independent Contractors –Which to Choose?

If you have been managing your home business for a year or longer, perhaps you are considering about hiring employees. Home based business entrepreneurs have two choices- to hire permanent employees or to hire independent contractors. Before making a decision, always weigh the pros and cons of each choice.

business outsourcingConsider Your Options

In order to decide whether to hire full-time workers or freelancers, you need to distinguish the task at hand. What kind of tasks do you need to designate to a worker?

If you need a personal assistant in your home office to do your filings, prepare your documents, answer calls or look after you shop, then what you need is an in-house employee.

However, if you need assistance in marketing your online shop, maintaining your website, or other tasks than can be done online, then you can consider hiring a freelancer.

When it comes to salary, you are more likely to spend more if you’re going to hire an in-house worker. Aside from the monthly salary, you will need to provide your employee with benefits and contribute to their insurance and retirement fund. One advantage of having an in-house employee is that you can directly supervise their work. You can give them instructions and observe their work at any time.

Grow your business. Try RingCentralOn the contrary, an independent contractor doesn’t require a regular wage nor any benefit. Independent contractors are paid based on their input alone so obviously, you save more. Freelancers can work from their place so you don’t have to pay bills for the electricity or internet connection used to perform the tasks.

Hiring A Freelancer

If you have decided to hire a freelancer or an independent contractor, see to it that you get to know the background of the applicant before hiring his/her service. You need to make sure that your freelancer would be capable to deliver the job on time and the output would meet your expectations. You need to make sure that the applicant has a reliable computer system and internet connection to avoid delays or absences.

Hiring an independent worker who already has experience on the job is best. You’ll want to check the portfolio of the applicant to see his/her previous clients or the companies he/she have worked with. Lastly, if you think you have found the right person do the job for you, prepare an Independent Contractor Agreement and see to it that the contract clearly defines the duties you expect from the worker, including the exact amount of payment you intend to give.

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About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

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