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Small businesses often use a mix of employees and contractors. Employees are bound by the company’s operating procedures, while contractors have their own skillsets and complete work using their own methods.
Hiring contractors can help your business expand its workforce without incurring the financial burden of hiring a full-time employee. This can save you money, time and resources – and give you peace of mind that your business is running smoothly.
1. They’re More Flexible
When compared to permanent employees, contractors are often more flexible. They can work different hours, shifts, and projects without having to worry about missed pay or annual leave.
They’re also able to take time off to have family and friends over or go on a vacation. This helps employees stay healthy and enjoy a better work-life balance.
Contractors can also provide a fresh perspective and unbiased input for your business. This is especially helpful when a permanent staff member is on sabbatical or out on maternity leave.
As a result, it’s important to have a strategy for how to hire contractors that will help your business grow and meet your needs. While contractors can be cost-effective and offer great flexibility, there are some things you should keep in mind.
2. They’re More Cost-Effective
Contractors are often more cost-effective than hiring full-time employees. This is due to the fact that they don’t pay for employee insurance, vacation, retirement or other benefits.
They also have less administrative requirements, such as the need for office space or computer equipment. Moreover, they often perform their jobs more quickly and effectively than permanent staff.
Using contractors to manage tasks such as one-off projects, change management or fast turnaround work is not only a good idea, it’s also a smart business move. It can free up resources that would otherwise be devoted to recruiting and training new staff. It’s also a great way to test the skills of prospective employees before you offer them a permanent position. It’s also a good way to save money on overheads like payroll taxes, benefits, and health insurance.
3. They’re More Flexible in Time
The construction industry is now close to a major culture shift on the issue of flexible working, according to a specialist consultancy. The four pioneering contractors – Laing O’Rourke, Kier, Kier Group and Lendlease – who took part in a pilot scheme last year reportedly saw an improvement in staff sickness levels as a result of their flexible approaches.
Ultimately, the flexibility offered by contractors is a huge bonus, especially when it comes to work-life balance. It allows contractors to choose when they work, whether they work on site or not, how much time off they take and when their workload will increase or decrease. These factors can improve employee satisfaction and performance, as well as help you attract and retain employees in the long term.
4. They’re More Flexible in Pay
Contractors are the folks who provide services, goods, materials and equipment on a commercial scale. They may be tasked with designing and building your next high-end home or commercial office space, but they also can handle all the mundane tasks like painting and cleaning. In some cases, contractors can earn more than their company-employee counterparts. In particular, they have the ability to negotiate deals on your behalf. They can also be more flexible in their approach to your project. For example, they may be able to work from anywhere in the building and still get their work done. It’s a win-win for everyone involved!
5. They’re More Flexible in Skills
A major difference between contractors and employees is that a contractor is not bound to work for one company for the foreseeable future. Instead, they are free to accept requests from any company and work for them on a project basis. This can help you save money by not paying for a full-time employee. You can also use this freedom to hire a contractor for more complex projects or tasks that require a certain skill set.
The construction industry has long struggled with people issues, such as a high rate of mental health problems and difficulties with gender diversity, but it could be close to making a significant cultural shift to flexible working, says Emma Stewart, who is leading a trial programm co-designed by Timewise. She notes that many of the sector’s largest contractors have recently begun looking seriously at flexibility, which she believes could help to solve some of its toughest operational barriers.