Should I hire an independent contractor or a full time employee?
I have reached the point where I can not handle all the work by myself anymore and I need to outsource some of it. I am not sure if I should outsource by a per project basis to an independent contractor or hire a full time employee. How do I decide what makes more sense time, money, and training wise? If work continues to quantify, I would want to make a full time hire anyway, I am just not convinced I am there yet.
It all depends on how you will be more comfortable working. I think it's a good idea to give some work or even projects to contractors. This practice is now used by hundreds of large companies that give the development of a product or part of a product to industry leaders.
Training a full-time employee can be very time-consuming and not always a great idea. Some projects are better just to entrust an experienced contractor, who guarantees the result of the contract. For example, I found great industrial design companies on Engre: https://engre.co/services/design/
You can simply publish a project on this site, and experienced contractors will start writing to you, who are ready to take it on and help your business
Much depends on your business plans & type of service you need. If you need highly-skilled tech professionals on a full-time basis but don't want to spend lots of time & money on them, you can contact an offshore software development company. In such way, you get your own team of professionals in a more cost-effective way. No compromise on quality of service, as these specialists choose employees out of a huge talent pool.
If you're a small company looking to build a dedicated team quickly & with no risks, this may be the right solution for you. Anyway, good luck to you!
I'd recommend holding off on the costs of a FT employee. There is a ton of extra expenses with this option. I would recommend outsourcing above hiring an independent contractor. I have use outsourcing for a year now and it turned out to be the best choice for me. #1, it saves time and allows me to focus on money making activities. There are many more bonuses and I can share them with you if you are interested in learning more. Just send me a message and we can chat. I can even pass on a few resources if what you are needing is something I have a match for.
Your question has the answer in itself.
You mentioned you are still not there to hire a full time but you will need a full time sometime in future .So till that time just hire an independent contractor with an agreed time frame on the contract and once you feel you are ready to hire a full time either take the same contractor as full time or close the contract with him and hire a new full time employee.
Best Of Luck,
North York, Canada
Hiring a contractor has it's perks however you may be responsible for the unexpected, like paying workmens comp for them if they do not carry this themselves.
Evaluate your needs and the future of your company. Will it continue to grow and how long do you think this growth will go on. For the short term a contractor would work out to your benefit. Long term, hiring someone and training them will enable you more freedom. Vacations expansion etc.. most will not have the heart for business as you do so understanding this chose a plan that works in your favor.
Best of success. Gil.
If you are sure that your work will going to increase i.e. your work is a long term work; I will recommend you to go for full-time employees. Else if your work is going to wrap up within few months, hire a freelancer.
I agree with Walter Wise. It depends. If the work that needs to be done is to continue growth of your company then an independent contractor could provide the assistance to sustain current commitments. This will give you time to clearly assess all options. Prioritizing has helped me to choose the best solution.
If the work is simple and monotonous, hire a full timer. This is from experience. People who come and go do the hard stuff, get tired, stressed and leave. If the work is considerably demanding, consider hiring even high school or college students - who can learn readily, then pass it on to their friends before they burn out. Hiring online freelancers is also good - these people are obviously hungry and looking to get a reputation for their skills.
Having a mixed group of these people is also good common sense and lifts your youthful vigour.
Well It depends on work situation & your ability to pay , I think full time employee so that you can move freely to develop the work , Since you are at building up your business then you can make better results while moving out .
As someone who provides outsourced Chief Operating Officer services, I think you will be well served by hiring a contractor to assist on a part-time basis. There are several benefits to this approach, including minimizing the time you spend training, getting the incremental help you need without paying for unused capacity, and having that person help define the requirements and skillset for a future full-timer. It may even turn out that the part-timer becomes the person you want full time, and you will have been able to "test drive" before buying.
Note: the part-timer may cost more on a per-hour basis than what you would pay a full-timer, but you should expect their expertise and efficiency will result in a positive ROI.
Hiring a virtual assistance has some advantages. Like you wouldn't have to pay us (a virtual assistant) overtime, sick pay, vacation pay, family leave, 401k's or any kinda benefits an employee gets. And best of all we (a virtual assistant) pays our own taxes. You just need to know the jobs getting completed so hire someone you can trust.
Unless you have guaranteed work on contract that you would warrant hiring full time and the expense of benefits and tax payments then I would suggest hiring a contractor to do the work and save the money on employment tax and insurance and the worry of paying unemployment if you do have to let them go if the business is not what you expect in the future.
Do u have a mission,vision statement, & a business plan? If not a Score counselor would help you decide.....
Hi Marcus - My advice comes from real time experience. The answer was not easy when I got to the same point you are currently in but looking back, the solution is easy. Find, interview and hire an independent contractor you trust. After all is said and done and all ducks are in a row, it is less expensive, less stressful and less time consuming to hire a person or team that can handle your projects that way you need them handled.
The only tricky part is securing the right team or individual. I have done this but with slightly different goals in mind. I actually wanted to find an independent contractor to handle more than just overflow work. I partnered with a certified team with the skill set I know my customers need to have. It has made my business like significantly easier and most importantly, removed the ceiling I had to growth.
If you configure the relationship right, you can grow with less push back. It may not be easy as pie finding the perfect team but once you do, you can take the shackles off and fly with much more freedom.
There are plenty of resources that are willing to work on a contract basis. I would start there and wait until the volume of work requires an FTE... otherwise you risk having a person becoming bored by not being busy all day.
I'd figure out where your strengths and weaknesses are within your day-to-day or month-to-month work processes first. Is your time better spent doing something else besides calling up buyers or managing accounts?
Usually when people are in your situation and not sure about a full-time hire outsourcing can be a great way to prepare yourself and the business for the stage when you're finally ready for a full-time employee.
For us here at Retailbound, we help product manufacturers by completely taking over (or mostly) their retail activities. On top of this we have a large depth of expertise in retail. These existing internal systems, relationships in retail, familiarity with working with companies, etc is a significant advantage over a full-time employee.
You should also consider the potential time it would take to train a full-time employee as well as benefits and supplies. It's definitely a long-term investment should you go that route.
Hope this helps in some way!
The real answer is "it depends". What work do you need help with and want to outsource? Is it a full time or part time requirement?
Contracted staff are always more experienced. Hence your costs are managed and definable. With accounting or bookkeeping, for example, you may outsource that forever. I know a $40 million company in business for 40 years who just hired their first full-time controller.
With managed costs, you can build that into your budget and projections. With hired staff it is not as clear,
The first steps is to clearly articulate the tasks and the quality of work you expect from this person. Once you fully understand the kind of "help" that you need, it will be easier to decide which time of resource will best work. Also - consider other alternative resources. You are not limited to only full-time employee or an independent contractor.
One recommendation is to create a three column list:
Column 1 - All the tasks that keep your business afloat and growing
Column 2 - check the items that ONLY YOU CAN DO. (This doesn't mean list things that you can do. This means list the things that no one else but you can do).
Column 3 - Check the items that (once you have documentated the procedures, streamlined, optimize or automated it) someone else can do it
Column 4 - List the quality criteria required for this task to be considered "done". You want to focus on the minimum requirements needed to get you to your next step or goal. Not every task needs to be A+. It just needs to be done in such a way that allows you to move forward.
Column 5 - Decide what type of resource can accomplish this task. For instance - if it was streamlined and automated, can an intern accomplish it; a family/friend do it (via a barter/referral program), an advocate (customer that is a great fan of your services - that you can offer discounts), an affiliated partner (through a referral partner program), a part-time employee or an external contractor.
Many people make the mistake of thinking they need to hire people to help them do the thing that makes their business unique. But the truth is that you may need to keep the "things that make your business unique" (things that only you can do) on your plate, and hand everything else off to other people. Once you can clearly categorize the tasks and level of experience needed to accomplish those tasks - you can better decide your next steps. And you can continue to reuse this method as your business grows.