Independent contractors represent one possible staffing solution for businesses that need specialized, timely help. While these types of workers may not solve every staffing dilemma you have, outsourcing remains a good choice for businesses in certain situations.
If you need to make this kind of decision, keep in mind the basic strategies for using independent contractors for your firm. These workers come with benefits and costs. Flexibility and savings present the two most relevant facets of outsourcing your labor pool. Unfortunately, your company may come under tighter scrutiny if you contract workers.
Not every company has a steady line of revenue over an entire year. Accounting firms hire temporary professional workers during the first four months of the year, and landscaping crews and lawn mowers, at least in colder climates, work six to eight months per year. Independent contractors are perfect for short-term staffing solutions when you need a little extra help. When your case load picks up and you need extra office help to file paperwork, contract labor shows the way.
Independent contractors don't fall under the same wage rules or hourly labor laws. If your contract runs for $2,000, the worker gets paid that amount within the time frame of the finished project. If you give the person one month but he finishes the work in three weeks, he still gets paid $2,000. There is no set minimum wage for contract labor, just a set contract over a period of time.
Cost savings means you don't have to pay someone health insurance, take out payroll taxes or provide training. Small businesses aren't subject to provisions of the Affordable Care Act if a company has fewer than 50 employees, so contractors help keep employee costs lower.
The downside to having more independent contractors happens when the Internal Revenue Service decides to audit your books. Many businesses try to save money by having contractors, but you need to be sure these types of laborers aren't treated like employees. Create a thorough, legally binding contractor agreement signed by all interested parties. Just because you call someone a contractor, it doesn't mean you treat them like one.
Despite potential snafus, more and more workers seem to enjoy freelance work. A 2014 report states 53 million Americans engage in some type of freelance work, either full-time or as a side profession. Several websites specialize in connecting firms who need contractors with laborers who love this kind of work. Consult with a recruiter to ascertain your options when you decide to outsource some facet of your workforce.
Independent contractors represent the wave of the future, and they're good for business. Workers love to set their own hours, work when they want and even complete tasks from the comfort of home. Choose this kind of laborer the next time you need skilled help in a pinch.
Photo courtesy of Stuart Miles at FreeDigitalPhotos.net
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