As a small business owner, hiring decisions are some of the most critical you make for the future of your business. A good hire can boost productivity and increase innovation, but full-time employees are entitled to certain benefits that can harm your bottom line. If you’ve been putting off business-related tasks or projects — such as building a new website, creating new marketing materials or transitioning your business to a new billing system — due to a lack of skilled staff or concerns about the potential financial impact on your business, consider seeking out an independent contractor instead.

When you hire one of these seasoned professionals, they come armed with specialized skills that can give you an edge over the competition without breaking your budget. Plus, contractors only work as long as they’re needed, giving you much-needed flexibility for projects or short-term needs.

Continue reading to learn the many ways an independent contractor can help your small business succeed.

What is an Independent Contractor vs. an Employee?
Before we dive into the benefits of utilizing independent contractors for your business, let’s examine what makes them different compared to conventional full- or part-time employees.

Employees
Employees are individuals you have hired to provide specific services in exchange for wages or a salary. As the employer, you have a right to control and direct them as governed by the terms of the hiring offer and contract. As part of their agreement, employees receive certain entitled benefits, including health insurance, retirement plans and paid time off. Various state and federal laws ensure that they have access to fair wages, a safe workplace and support in the event of a workplace injury and that they are not subject to discrimination.

Independent Contractors
Unlike employees, independent contractors are self-employed individuals or businesses who provide services to a separate company or client according to the terms of their contract. Because independent contractors promote and are hired for a particular set of skills — such as writing, designing, marketing, accounting, consultative services and many other specialties — they often don’t need the same level of direction and oversight as conventional employees. Nor are they entitled to the same benefits your employees receive, something that can result in significant cost savings for your business.

Now that you understand what sets independent contractors apart from the rest of your staff, let’s examine the many ways they can help your business, from lower overhead to reduced liability and increased efficiency.

Benefits of Hiring Independent Contractors
Small business owners make dozens of critical decisions regarding their employees every day, from hiring to training to evaluating success. Independent contractors can help take these responsibilities off you, while offering additional benefits, such as:

• Saving money – Unlike full-time employees, who receive certain benefits as part of their job, such as healthcare, paid vacation days, retirement contributions and others, independent contractors typically cost business owners less to retain. This is because contractors are responsible for their own benefits and overhead expenses. Additionally, if your independent contractor works remotely, they can help you save on office space, supplies and related costs.
• Specialized skills – Quickly gain access to the specialized skills and insight your business needs through independent contractors. Let’s say you want to revitalize your company’s marketing efforts but don’t have the budget for a full-time position nor the time to take this project on yourself — a savvy independent contractor can provide a fresh perspective on your marketing channels without the costs associated with a full-time employee.
• Reduced liability – As a small business owner, you’re familiar with the many laws designed to protect your employees. These can include, but aren’t limited to, workplace safety, harassment and retaliation laws. Independent contractors, however, aren’t held to the same requirements and must enforce their rights through their contract language or other means.   
• Enhanced efficiency – Employees require time to train, often necessitating oversight until a supervisor, manager or owner feels confident they can work independently. With independent contractors, there is no need for an extensive training period, as they have already demonstrated their knowledge and abilities. This way, your independent contractor can start a project on day one with no lost time, so your business can make the most of this professional’s time and expertise.

With their autonomy, knowledge and flexibility, independent contractors offer a bevy of benefits for small business owners. Thanks to online job boards like Indeed and contractor-focused sites like Upwork, finding the right set of skills for your business is just a click away. For more insights on ways to help your business succeed, please read our other informational articles at americanbusinesscoalition.info.

Articles in this newsletter are supposed to be informative, enlightening and helpful to you. While all information contained herein is meant to be completely factual, it is always subject to change.

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