Companies these days quite often use both permanent employees, permanent part-time employees, and independent contractors. In other cases, companies only use gig-economy works that all work remotely. It is hard to believe, but the worker economy has changed, and, in most cases, it is for the better.
Today’s technology has given people the ability to work at home. In fact, with this advent of remote working capability, and COVID-19, the numbers and the employment of independent contractors is exploding like never. Careful thought needs to be employed by businesses when deciding if gig-economy independent workers are right for their company. Featured below are is a review of the top advantages of employing independent contractors for companies.
The following are a handful of the independent contractor advantages to consider:
- Elasticity. Projects staffed by independent contractors mean costs savings and effectiveness. Once the job is done, the worker goes to the next job because that job is over, and they are not a permanent employee. Firing them is not involved because the contract was for a fixed period. If there are other jobs that come up, if the contractor does not keep up with assigned agreed to tasks, you can let them go at the drop of a hat. Independent contractors give businesses the ability to fill short term worker needs without the need to go through the hiring process or the expense of it either.
- Entrance and Immediate Availability to Employees with High Level Expertise and Job Skills Jobs companies have and contracts companies land may require expert skill sets no one at their company possesses. Locating people in the independent contractor economy in 2020 and hiring them may be a way to hire the right person on a contract basis to do the job, but not hire them to be a permanent full-time employee. Job credentials and licenses are hard earned for certain type so jobs and independent contractors that are licensed specialists in a specific field come ready to work and help a business get things done.
- Decrease in Job Learning Curve to Complete Job Effectiveness
Normally when a company employs a new worker there is almost always a learning curve where there is a period time when the employee is not productive to when they become a regular contributor to the jobs at hand and to the company’s success. Employers are able to achieve things more quickly and complete jobs on time when hiring independent contractors because the arrive with the job skills needed and they may not need any training. They can literally hit the ground running, start working and be effective immediately.
- Payroll Management Simplicity Payroll administration for businesses is simple and easy with properly classified independent contractors. Employers using independent contractors is not accountable for payroll tax deposits and payments. These employees are paid their contractual rate and that is it. Additionally, independent contractors do not require any administrative time dedicated towards managing paid time off, sick leave, benefits or IRS form reporting of any kind.
- Reduction of Expenses Notwithstanding the fact independent contractors are more expensive per hour compared to permanent employees, there is a reduction of expenses that outweighs this fact money wise almost every time. The reduction of those expenses are as follows:
- Lowering of payroll management time spent and cost
- Cost reduction due to no benefits including paid time off, health insurance and administration expenses
- Zero expenses for unemployment insurance and workmen’s compensation insurance.
- Reduced hiring expenses.
- Reduced to zero employee job instruction costs
- No paid days off or sick leave expenses
- Lower operating expenses – Independent contractor work from home so they do not need access to a desk or office equipment.
Lowered Liability Costs. Independent contractors are never “let go” or “terminated” like regular full-time employees. Naturally, this reduces the liability costs associated with lawsuits and other legal issues that come with firing permanent employees unjustly.