Everyone knows who an employee is, but there are people out there who don’t know about contractors and their role in a business.
A contractor basically is a person who is self-employed or in some cases, a contractor is also referred to as a person who is an employee of some other country. The job of a contractor is similar to what an employee does, but the company does not pay the contractor directly. Contractor management in Australia is quite common and there are a number of countries that prefer contractors over employees.
You can easily dismiss a contractor whenever you want to and you aren’t liable for any damage or injury that occurs to the contractor. To make it more clear, here are some benefits of using independent contractors for your business:
- If your business requires part time workers, then yes contractors are the people you need to hire.
- If your business requires some specific skills for a very short time period, then again contractors will come in handy to you.
- You don’t have to invest in the recruiting and the training process.
- Independent contractors allow businesses to test them before “hiring” them.
Honestly, there’s a fine thin line that divides a contractor and an employee, but sometimes people who start off as your contractors end up being called your ‘employees’. When it comes to hiring a contractor, you don’t have to worry about the training part and most importantly, you already know what the other person is capable of.
In some companies, to clarify the status of the contractor a deadline is given to them that can be as long as 2 years or as short as 3 months. This way, the contractor knows that he won’t be able to work longer than the time duration that is specified in the contract.
Disadvantages of Hiring Contractors
There are a lot of benefits that your company will be reaping by hiring contractors instead of employees, but there are a few drawbacks to it too.
If you believe in teamwork and want your workers to be loyal, then it can be an issue if you hire contractors. If you treat your employees and contractors in a different way, then you won’t be able to get the loyalty you are expecting and the contractor will just view his work as a job.
2-Contractors Are Free
Just like you can terminate your contract with a contractor any time you want to, the contractor can do the same and move on to the next job easily without giving any notice.
Apart from these disadvantages, the benefits of hiring a contractor are numerous. So, if you require short term skills of a person, then you should opt for contractors instead of employees.