Running a business on your own means you’re used to working long hours and juggling lots of responsibilities.
Whether your goal is to reduce those long hours, to improve productivity, or to bring in new expertise, hiring independent contractors or employees might be just what your business needs to keep growing.
Building your team is an exciting step, but some aspects of hiring and managing workers could pose a challenge if you jump in without learning the basics.
As a small business owner, here are two types of employees you can hire.
Someone who performs services or labor for you on an ongoing basis, and you control what will be done and how. Employees stay on past the completion of each project. They tend to work at your businesses location, using equipment and tools that you supply.
Someone who performs services or labor for you, but is responsible only for the results, not how the project will be executed. A contractor’s work is usually done at the completion of each project— there are no ongoing responsibilities. Often they charge more, use their own equipment, set their own schedule and take care of their own business expenses.
Why it’s Different
Since contractors are self-employed, an employer is more like the contractor’s client than their supervisor. Independent contractors also don’t get a lot of the same benefits as employees. They don’t get offered sick leave, vacation, health insurance, and any other benefits an employer might offer to attract an employee. The contractor shoulders all of these costs since they’re treated like a self-employed business.
All of this is fine as long as the independent contractor gets to be their own boss as it’s intended. For some types of business, you need to hire a contractor who will get the job done and leave while for others you need to hire an employee who will stay on to become the face of your brand.
Considering your budget, find and hire the one that best works for you.