Should Your Business Consider Hiring Independent Contractors?


If your organization is considering using independent contractors for a specific job or project, you may need to know some of the various reasons why these kinds of workers are attractive to companies. Not every employment situation is appropriate for freelance work. Most of the time, workers who provide their skills and knowledge on a regular basis on site may not be eligible to be considered a contractor. For other situations, like when there is remote work, or a special temporary task, it may make sense to seek out a freelancer. This can allow your company to save money, be flexible with your hiring and lower your risk of employment issues or litigation.

Money Saving Opportunities

The biggest benefit to companies with independent contractors is the possibility to save money. Businesses are always looking to maintain profitability and reduce the bottom line. Hiring permanent employees is one of the largest chunks of an organization’s budget. When a new employee is brought on, typically you take on costs like recruitment, training, workers’ compensation insurance, unemployment insurance and Social Security and Medicare taxes. An unaffiliated contractor is exempt from those extra costs to your company.

Flexible Employment Options

Another great benefit to having a freelancer work with your business is the opportunity for more flexibility in your hiring. You can bring on extra people when business is booming and reduce projects during the slow times of the year. Instead of shouldering the expense and hassle of permanent people on your payroll year round, no matter how the industry is performing, you can tweak your staffing depending on your needs and current status.

Less Risk of Litigation

The last important advantage of hiring independent contractors is that your company is given more protection against damaging lawsuits dealing with employment practices. Regular employees have certain rights that affect how much you pay them, how much time they can take off, how you let them go and their ability to create a union within your organization. While every company strives to do the right thing, there are sometimes situations where a rogue employee wants to take advantage of your enterprise and get a cash windfall. Freelancers don’t have the same employment rights that other typical workers do, and that can help you feel more at ease in certain scenarios.

Hiring independent contractors may be the right choice for your company if you have ventures that require specialized skills and talents. A freelancer could help you reduce employment costs, maintain more hiring freedom and worry less about labor lawsuits.


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