All businesses want to save money, and by hiring a temporary contractor, you can do just that. Temporary contractors can save you money in a multitude of ways, and they can sometimes be more productive than regular employees. If you are have ever wondered whether or not you can save money by hiring a contractor, the following information will help you make an informed hiring decision.
Eliminate Equipment Costs
From a practical perspective, when you hire a temporary contractor, there will be no need to pay for office space and equipment. This means that you will not need to provide the contractor with office supplies such as computers, phones, and writing utensils. It will be the contractor’s responsibility to find the space and equipment that he or she will need to work on a project.
No Benefits
Since independent contractors do not qualify as employees, you will not be required to provide them with expensive employment benefits. It is not uncommon for benefits such as health insurance, worker’s compensation, unemployment insurance, and social security to account for nearly a third of a company’s expenses, but when you hire a contractor, you don’t have to provide them. This will allow you to save an enormous sum of money in the long-run.
Reduce Training Time
Independent contractors usually possess highly specialized knowledge, so there will be no need to spend large amounts of time and money on training. After hiring a regular employee, companies are often forced to pay for computer training, special classes, and orientations in order to prepare the employee for work. There will also be days when you will be forced to compensate this employee, without them having to perform a job. Hiring an independent contractor can save you from high training costs while increasing company proficiency.
Lower the Risk of Lawsuits
If an employee feels that they have been wrongfully terminated, he or she will undoubtedly sue you for violating state and federal employment laws. When you hire independent contractors, there will be no need to worry about this. Since a contractor is not an actual employee, he or she is not eligible for the same degree of legal protection. This will save you from having to spend astronomical amounts of money on lawyers, settlements, and court costs once this threat is eliminated.
Final Thoughts
In short, there are many different ways to save money with independent contractors. Every business strives to cut costs, and hiring a contractor may be your first step towards accomplishing this goal. Before you hire your next employee, remember the financial benefits of temporary contractors.
