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The current economy leaves a lot up in the air. With the Dow Jones down 16 percent year over year, and the Nasdaq down 30 percent, talks of a recession are looming. It’s during times like these that many businesses begin to look at their budgets and begin to trim them. While no business likes layoffs (trust us!), many times they are necessary to survive. However, in an attempt to avoid layoffs, businesses may opt to move from a full-time, permanent workforce to contractors. Here are five benefits of using contractors for your company and five benefits of becoming a contractor.
Benefits of Using Contractors
Save Money on Benefits: When using contractors you do not have to pay for benefits like health insurance, 401k, or paid time off. Independent contractors don’t expect these benefits and typically receive them through third-party services, like staffing firms or on their own.
Don’t Pay for Downtime or Slow Periods: When using a contractor you can choose to pay them on a project basis and save money during downtimes or slow periods. For example, if you work with a CPA firm, you may want to outsource your marketing for quarters one, and four, and save your money during quarters two and three, as these are typically slower for tax professionals.
No Long Term Commitment: Many companies go through several contractors until they find the right fit. Unlike full-time, permanent hiring models, with an independent contractor hiring model you aren’t stuck with a bad hire.
Fast Hiring Process: Just like you don’t have a long-term commitment with contractors, it is also very easy to hire a contractor. Typically, you don’t have to go through as many rounds in a hiring process as you would if you were hiring a full-time, permanent employee.
More Productivity: Contractors allow for more productivity day to day. Your full-time employees won’t be stuck doing work that can often be tedious or beyond their job duties, leaving them to be more productive in their day-to-day work.
Benefits of Being a Contractor
More Flexibility: The number one reason most people opt to become is due to flexibility. Typically, as a contractor, you can choose when and if you want to work.
More Financial Freedom: As a contractor you have more financial freedom as to the money you bring in the door. If one of your contracts hits a slow point, you can search for more work to fill in the gaps, or you can take on multiple projects at one time, leading to multiple streams of income.
No Long Term Commitments: Just like not all contractors may be a fit for a company, not all companies may be a fit for you. As a contractor, you aren’t stuck working with a company that you don’t mesh with.
Be Your Own Boss: As a contractor, you are your own boss. This is lucrative for those that hate being micromanaged or just are at a point in their life where they do not want to report to someone else.
Work From Wherever: Typically as a contractor you can work remotely, from wherever you choose. Contracting or freelancing is especially good for those stuck in a workplace that doesn’t offer remote work options. Not only do you save time commuting, but you also save money on gas.
Interested in hiring a contractor or are you looking for contracting opportunities? Contact us today to see how we can help you!