Reducing costs and raising quality are critical in any strategic planning. However, your workforce is the key element to achieving this. With it in mind, business owners should decide the best alternative when they need to hire workers.
Should you hire Independent Contractors (ICs) or permanent employees?
Read here the main benefits of hiring contractors over hiring full-time employees, and find everything you need to know before making your decision.
Independent Contractors definition
First, a quick overview of the terminology.
A general rule about who qualifies as an independent contractor says: “an individual is an independent contractor if the payer has the right to control or direct only the result of the work, and not what will be done and how it will be done.”
In short, ICs may have flexible work (hours/workplace) and are considered self-employed. It means they are responsible for paying self-employment tax, and the company does not need to provide them with benefits.
When to consider hiring an Independent Contractor?
The decision to hire a worker as an employee or independent contractor is done on a case-by-case basis. But, here, you can find three tips to identify easily when considering hiring an independent contractor.
The work will be completed in short-term or a defined period.
The worker needs professional expertise.
The worker is someone who needs little supervision.
If you have answered yes to these questions, go ahead and enjoy the benefits of having contractors in your project.
But if you have answered no and are looking to hire long-term or permanent employees, Airswift can help.
Financial savings is the first benefit of using contractors. Usually, employers pay contractors more per hour than they would pay employees to do the same work. But, when you hire employees, you have several expenses that you don't have hiring contractors, including:
Worker’s compensation insurance
Tax Social Security and Medicare
Health insurance and paid time off
So, in the end, you can certainly save money choosing to hire independent contractors.
More flexibility and specialised skills
In recent years, companies have learned a lot about the benefits and challenges of being more flexible and adaptable to changes in the market. Using contractors can be advantageous for employers with fluctuating workloads. That’s because they can hire an IC for a specific task or project.
Also, you will probably enjoy greater efficiency. Independent contractors bring specialised expertise to the job and can be productive immediately. That eliminates the time and cost of training. In practice, you can expand and contract your workforce as needed with a reduced long term commitment.
Less need to secure visa/clearance
How can you recruit the best possible candidates in an area where you have no connections or existing offices? If you are expanding to other countries using contractors, the secure visa/clearance is one less concern to be worried about.
You can hire local contractors by using a global workforce solutions expert. Keep your mind open to the possibilities, but make sure you are attending to all the legal issues of the region. Need help with Global Employment and Mobility Services?
Airswift can help you
We are an international workforce solutions provider and strategic partner to the energy, process and infrastructure industries. Our level of experience, exposure and expertise is unparalleled and we support both contractors and permanent recruitment. Human resources is in our DNA.