Human resource is the sustenance of any growing business, even if you are a sole proprietor; you need to have some helping hands to successfully manage your business. When the need arises, small businesses have to decide between hiring an independent contractor and a full time employee. In today’s business world, one has to consider several points before making a business decisions. Cost saving, quality control, timely delivery, these and many other factors are becoming increasingly important, therefore you must take them into consideration before reaching a final decision, as small decisions like these can eventually make or break your business.

Let’s read about the pros and cons of both employees and independent contractors.

Employees:
Conventional employees have always been the first choice of any business for many reasons. They receive paychecks from employers on monthly basis. Apart from monthly salary, the business owner must provide the required equipments, tools and even training in some cases. Hiring an employee means you’ve got a full time subordinate. In small setups, such employees usually perform more than one duty. You can assign routine tasks according to their qualification and skills, while utilizing your time in more productive work. When it comes to management, it’s easier to manage or control these workers; as you can easily monitor their performance. Because these employees are often solely working for one business (and the job is their primary source of income), they are much more loyal and dedicated to the betterment of the company, as compared to freelancer (it doesn’t mean independent contractor are not loyal with their work). Downside of hiring full time workers includes the time spent in human resource management, while operating costs of business also increases with the growth in staff.

Independent Contractor:
Independent contractors are skilled individuals, ready to work on contractual basis, which means you hire them for a project, giving a timeline and a fixed amount as fee. Nowadays, small businesses are turning towards independent contractors for various reasons. For example, these workers are usually experienced professionals and one doesn’t need to provide any kind of training. They have got their own workplace and equipment and you don’t need to bear overhead expenses. Some companies, having their own workforce, will also offer their services as independent contractors, which mean you can outsource big projects as well. Biggest problem with hiring an independent contractor is that you are not in charge and sometimes the end result is not what you exactly needed.