In case you missed our last blog, we took a dive into the pros and cons of hiring a contract worker compared to a full-time employee. The benefits are attractive, but it’s clear that contract work isn’t always a perfect solution.
For comparison, let’s look at some of the pros and cons of hiring a regular employee.
Pro: Greater Sense of Company Pride
Employees who are integrated with your culture and overall mission tend to feel more at home. They enjoy job security (something that contractors don’t always have) and may feel more inclined to represent the company well. They’re engaged in your mission every day, understand your long-term vision for the future, and can feel more like part of the team.
This level of engagement and consistency for a portion of your staff may be critical to reducing staff turnover, maintaining high employee morale, and growing your business.
Pro: Consistency and Control
Regular employees work for the company, not for themselves. This gives you more control over how, when, and where your employees work, which can build more predictability into your business. Should business pick up or slow down, you can adjust your employees’ duties and schedules as needed to focus on the most important tasks at the moment.
In addition, many business owners prefer the consistency of teams that work together regularly. You already know their strengths and weaknesses and can feel confident in delegating new tasks to them. Teams build a sense of camaraderie and trust and can work off each other’s energy. This isn’t always possible when your teams are constantly changing.
Con: Greater Long-Term Financial Impact
If you have short-term hiring needs, then hiring a regular employee might not make financial sense. The SBA says that a full-time employee actually costs 1.25-1.4 times their salary when you consider all the added benefits. Some of these extra costs, like employment taxes, are unavoidable. Others, such as training and equipment, are variable.
What’s more, when that employee leaves the company, you have to start your employee search over. SHRM notes the average cost-per-hire for companies is $4,129, and the average time to fill a position is 42 days. These figures don’t account for the cost of lost productivity and its impact on your customers.
Whether you decide long term or contract employees make more sense for your business now, Jobility can help find qualified, vetted workers to meet your needs. With competitive pricing and the added value of a dedicated support team and workers that have been background checked and available for your position, Jobility can be a great partner. Create a free account today at https://hirer.jobility.com/.
Sources:
- https://www.onehourtranslation.com/translation/blog/pros-and-cons-hiring-employees
- https://www.complyright.com/independent-contractors/pros-cons-independent-contractor-vs-employee
- https://smallbusiness.yahoo.com/advisor/resource-center/the-pros-and-cons-of-hiring-employee-vs-independent-contractor-203736904/
- https://www.business.com/articles/contractors-vs-employees-benefits-and-drawbacks/
- https://www.sba.gov/blog/how-much-does-employee-cost-you
