I hope you can consider it carefully before you take an action because it will influence the way for your business to run effectively and efficiently. Hiring a freelancer is a cost effective and flexible way for your business rather than hiring an employee. The smart business owner will know how he will know when to hire an employee and when to hire a contractor. And if you want to become successful business owner, you need to learn about this vital skill.
The first thing that you need to consider is the duration. Duration means how long is the period of time that you need someone to work for you. For instance, if you have got a certain temporary project then it is more appropriate to hire a contractor rather than an employee. Why? Because the project is temporary and it is over while the task in the project has been finished. You don’t need to spend fixed expense every month to hire the contractor anymore because there aren’t any jobs that they can do anymore in your business except you have a new project again in the future. So you will get a flexible option while you hire a contractor.
Usually some routine jobs need to be done by permanent employee because the job and task will always remain as long as your business is still running. In a downturn of economic condition, it is more appropriate to hire a contractor because it is easier to stop the contract rather than terminate the contract of an employee. It is more difficult to fire and employee legally, financially and emotionally. In bad economic situation, you need to cut off your expenses. Pay fixed salary for your employee is an expense and you need to erase it in this condition because your income and revenue is not so big to cover the expense that you have spent. Most of small businesses cannot remain and finally collapse because they can’t manage between their income and expense well.
The second thing that you need to consider is regarding to your budget. You may compare between the cost and expense that you need to spend if you hire an employee or a freelance contractor. Mostly you need to spend more expense such as about 30%-40% if you want to hire an employee. These costs include some benefits, compensations and any other expenses beyond the fixed hourly rate and salary of the employee. You don’t need to spend these extra costs while you hire a contractor. I hope you can judge wisely whether to hire an employee or a contractor after you read this blog and keep in mind to always look for competent and skillful freelance contractor from the best job marketplace VirtueTeam.com