With changes in the workforce this past year due to COVID, some companies are finding that hiring niche contract workers is easier than hiring full-time employees. Contract employees provide several benefits to employers. Below are some of those advantages and things to be aware of.
1. Flexibility
Hiring a contract employee allows for a certain degree of flexibility. If your firm experiences workload fluctuations, a contract worker might be the answer. You can hire an independent contractor for a specific task or project and once the project is completed, the contractor can be let go. You can hire a contractor more quickly than a full-time worker, plus it provides the opportunity to evaluate whether you may need their talent as a long-term job requirement.
2. Cost Savings
You can save a lot of money when you aren’t responsible for paying benefits, paid time off, bonuses or training. While you may pay more per hour, from a markup perspective, you won’t need to worry about these additional obligations that full time employees bring. Typically, contractors will take care of their own taxes so you will not need to spend dollars on handling their payroll taxes. Besides income taxes, contract employees take care of their own Social Security and Medicare taxes. You will also save on not paying unemployment and workers’ compensation insurances.
3. More Experience
Contract workers tend to have more years of experience than other employee groups. They typically have a specific skillset and are experienced with working niche projects. Because of this, they can usually jump right into a project and hit the ground running.
4. Fresh Perspectives
Besides bringing in years of experience, independent contractors can also add a fresh perspective to a project or job. They know methods or processes conducted by competing businesses. They might have seen or experienced what processes worked and what did not. You receive the benefit of understanding lessons learned from another project or company that might benefit you in the long run. Sometimes it takes an outsider to see how you might be doing something that is not efficient or effective and totally change it for the better.