Hiring Contractors versus Employees
If you are an employer, when is it best to hire permanent employees, or contractors? This is always a tricky one and both have their pros and cons.
Contractors have great advantages to businesses and to themselves, but permanent employees also have their strengths depending on the circumstance.
Here are some things to consider when you’re making the call:
Your business may need someone with a specific skill set for a defined period of time (such as a specific project)
Businesses may only need someone to fill-in on a position short-term
You may not want your business to be locked into the cashflow obligations of employment (it’s not just salary, remember, but holiday pay, time commitments for training and mentoring etc)
Contractors are often skilled in a specific field
Contractors can be dialled up and down time/ money wise to suit your business needs and time frames, without being locked into employment obligations
Contractors will manage their own tax obligations (except where Withholding Tax is required to be paid by the employer)
You may not be able to guarantee long-term continuity with contractors (if their contract ends and they move on) which can affect the relationships and expertise they bring
If a contractor works for one company for more than 80% of their working hours per week they are then deemed an employee
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