Choosing Between Cotnract And Full-time Employee

Copyright (c) 2009 Melanie James

Consider Your Options

Before going out to hire employees, consider your options. What kind of tasks do you need assistance with? If you need an assistant to help you in filing your paperwork, answering client calls, and other tasks that needs to be done in your office, then you definitely need a full-time employee. On the other hand, if you need help with the design of your site, marketing your website, marketing the articles, and other specific duties that can be done online, then consider outsourcing freelancers.

It is worth noting that the compensation of a full time employee is a lot more expensive than an independent contractor. This is because freelancers work on a contractual basis and therefore, do not require regular wages and benefits.

When you hire a freelancer, you don't have to pay for the Social Security, insurance and other benefits. You only pay them based on the rate that they demand for their services. After the project's completion, you can then assign them with new tasks.

Add to this, independent contractors do not necessarily need to work in your home office or premises. Freelancers do their tasks from their own place, using their own resources so you don't have to provide them with equipment or an office space to do the job. This is why hiring freelancers is more cost-effective than hiring full time workers.

Is there a disadvantage when hiring independent contractors? One thing about freelancers is that they work on their own. If you're unhappy about their performance, you can refuse to pay them and find another to do the same job. On the contrary, a full-time employee works under your supervision. You can instruct them to the job the way that you want it done.

Hiring A Freelancer

If you do decide to hire an independent contractor, get to know all the information that you need before accepting a worker. For instance, is the freelancer a part of a team of independent contractors or does he work on his own? Does he work from an office or from his home? What kind of equipment does he have? Would those devices or equipment be suited to do your projects? What is his educational background? Does he have experience in the job you require? Which companies had he worked for in the past?

Carefully examine your freelancer's portfolio and experience to make sure you'll get the right person for the job. If applicable, don't hesitate to ask for samples of his work or previous projects. If your freelancer lives near the area, conducting a face to face interview would also be an advantage. Finally, prepare an Independent Contractor Agreement for your freelancer to sign on. See to it that the contract defines the exact terms and conditions that both you and your freelancer had verbally agreed on.


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Entrepreneur and writer. Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line. Currently she is working with MerchantsCenter.com to writing articles on effective small business management.