Being a business owner, I feel more inclined to hire independent contractors because of the perceived costs saving and the quality of the work. Through working with the independent contractors, I will be able to avoid break-room supplies, an overhead cost which includes the space of the office, workers compensation insurances, and employment taxes. Besides, I would choose to work with the independent contractors because they bring specialized expertise whereby, they focus on one thing and do it very well without supervision, unlike employees who work well only under the supervision of their employer. I would also choose an independent contractor over an employee because of the flexibility. Typically, hiring independent contractors enhances flexibility since I can contract them according to the budget, unlike employees who stay in the company for the long haul. I would also be able to save cost since I do not have to provide benefits to the independent contractors. Eventually, I would feel more inclined to work with independent contractors than employees.
Typically, I would consider working with both independent contractors and employees at the same time. Being a business owner, I would employ employees who will be available all the time to work for my company. I would, therefore, be hiring the independent contractors to perform the technical jobs which may arise in my company. By working with both of them, I will be able to benefit in more ways. Working with employees, they will be under my timeline, and they will work according to my directions in each job while working with the independent contractors will enable me to save capital which can be used for other purposes in the company. Both employees and the independent contractor will allow my business to have quality operations since the employee will only be committed to my company and the independent contractor will bring specific expertise.
Delegate your assignment to our experts and they will do the rest.
Notably, there are some risks which can be encountered when hiring independent contractors. The most significant risk linked with the hiring of an independent contractor is worker misclassification. The engagement process is faced with complications since there are no standards tests available with the capability of determining if a worker should fall under the classification of an employee or an independent contractor. Thus there are significant consequences which arise due to the worker misclassification which may include paying back taxes with interests, class-action lawsuits, and hefty fines. Besides, there is a risk of hiring independent contractors as far as liability and insurance are concerned. When an independent contractor is engaged in any business, he or she is not covered by the company’s workers’ compensation policy. This case becomes dangerous since, in case of any injury occurring, the injuries’ liability can be forwarded to the person who hired the independent contractor.
Hiring employees in a company are linked to multiple risks which can result in unnecessary cost and poor work quality. In most cases, the employees are not specialized; hence they may not work effectively like the independent contractors. The employees work under the timeline of the employer which means that they may lack decision-making skills which put the business under a great danger in case of an absence of the employer. Besides, working with the employees has high legal risks to the company because the employees are eligible for worker compensation coverage and can, therefore, bring most types of wrongful termination claims, and usually, they don’t carry their professional insurance cover. This case claims a high company’s legal exposure. Also, by working with employees, a company maximizes the business costs. In this case, the company is supposed to provide benefits to the employees, overtime and minimum wage. Besides, employees require an office space which might be costly for the employer or company to rent offices for them.
