The Small Business Guide To Hiring Contractors

While they appear similar on the surface, contractors and employees are very different, offering a varied set of skills and advantages for your business. Because of these differences, contractors need to be treated in a unique way. You can take advantage of what they have to offer but you also need to treat them according to their terms and needs. If you are someone who hires contractors, this guide takes you through everything you need know: what contractors have to offer and how to make the most out of their services.

What do contractors have to offer?

Contractors provide your business with specific skills when your business needs them. You’d usually use them for a specific project or at times of the year when you have extra demand. A contractor typically fills a role that your business doesn’t generally offer but needs for certain projects. Contractors are also accustomed to a flexible working lifestyle. They don’t have constant employment as they’re always picking up new and varied work, and are therefore highly skilled and confident in their abilities.

Why hire a contractor?

A contractor offers you easy access to skills, when finding a long-term employee is not practical. They are there for you when your business cashflow is in flux, and you’re not sure you can support hiring more employees. Contractors have flexible hiring terms, so if you need to cut expenses suddenly, you can let them go at short notice. You also do not have to pay overheads such as holiday and sick pay, employer taxes or superannuation to your contractors, so they are a cost-effective way to increase your manpower.

How to treat your contractors

Although your contractors are a temporary part of your team and not a permanent fixture, you’ll still want to be inclusive. Treat them as you would your other employees by inviting them to meetings and out-of-work get-togethers. This is a good way to build rapport for future work together. Pay your contractors regularly and on time, according to the same pay schedule as your other staff. By the same token, your contractors are not employees and deserve to be treated differently in significant ways, namely when it comes to attitudes towards work. Contractors will be more focused on the project than the team or the business. Keep this in mind and you’ll get along great.

When to hire employees instead?

Contractors and employees each serve a purpose. If you’re looking to grow your business long-term, you need to recruit employees. These will become people you trust, with the same vision of expanding your business. Although employees cost you a little bit more than contractors, their value will pay for itself over time because their skills develop side-by-side with your business. Think of an employee as an investment whose value increases. This is why it’s never a good idea to have a high employee turnover rate, nor is it ideal to hire contractors for long periods of time. An employee will help you build a team with good dynamics that will take your business into the future.

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