5 Reasons Why You Should Hire Contractors, Not Employees

In today’s challenging business times, where competition is greater than ever, it is imperative that you make savings wherever possible. The smaller your outgoings can be, the more money you’re going to make as a business. One way you can do that is by working with contractors, rather than hiring full-time staff. Below, we round up some of the reasons why…

Pay on results

Unlike employees, who must be paid at the same time every month, regardless of their level of engagement or performance, contractors are paid on results. You can hire a contractor for a set period and say goodbye once they’ve done their job, and there’s no need to worry about any sick pay, national insurance, or employee burdens. It’s important that you take into consideration upcoming IR35 changes before choosing a contractor-only scheme, though.

Highly skilled

Unless you’ve got millions to spend on hiring the top talent in your industry, the chances are that you’re going to end up with a team that isn’t the best it can be. Contractors, on the other hand, are often highly skilled and specialised, and so you can depend on them for a one-off job as and when needed, rather than acquiring a talented but expensive recruit, or paying for endless training and development for a bloated team where results cannot be guaranteed.

Remote working

Another benefit of hiring contractors over employees is that they can work remotely. There are, of course, disadvantages to hiring a contractor in Malaysia if you’re in London and need them in the office, but more often than not, it means you can access cheaper talent, and not have to worry about providing them with office space, accommodation, and tools they need to do their job. What’s more, they can work when you’re asleep, increasing productivity.

Speed

For companies in the financial sector, the average hire takes 44.7 days. If you need an extra pair of hands quickly, then you can’t follow the standard recruitment process – outsourcing to a contractor allows you to find a skilled member of staff within 24 hours, and have them work on your project almost immediately if their schedule permits. In our fast-paced times where clients expect services to be delivered in breakneck speed, contractors fill the speed gap.

Easy to terminate

Finally, contractors don’t carry the usual burden of an employee – once they’ve done their job and you don’t need them any more, they’re released to work with other clients. Most firms will write a clause in a contractor’s contract to allow for early termination, so if circumstances change and you need to free your contractor of their duties immediately, you’ll be doing so within the law and won’t have to worry about publicity, low morale, or employment tribunals.

Have we convinced you that contractors are the way to go? Let us know your thoughts and check back soon for more tips and tricks on running a profitable, efficient business in 2020.