Why You Should Choose Contract Workers For Your Business
If you’re a small business owner and you’re looking to grow your company, one of the best ways to do that is by hiring contract workers.
Whether you are looking for technical recruitment, industrial staffing, or warehouse staffing, opting for contract-to-hire saves time on in-house training while giving you the flexibility to scale up or down your hiring.
Read on to know more about the benefits of hiring contract workers. But first, let’s look at how contract-to-hire differs from full-time employment.
What is the difference between a contract to hire and a full-time employee?
There are a few key factors the IRS uses to determine if a worker should be classified as an employee or a contract worker including:
- How, where, and when the work is done– Is the work done at the place of business or remotely? Are the hours of work set by the employer, or does the contract worker define their own timings?
- Is the payment made on an hourly, monthly, or weekly basis? Or does the worker get paid after completing a project?
- Whether it is required for the worker to undergo complete company training– Contract-to-hire workers do not usually have this requirement.
- The other factor is whether or not the worker has access to company benefits, like health insurance, reimbursement for travel, or a retirement plan. If they do, that’s another indication that they’re an employee.
Benefits of hiring contract workers
Here are the reasons to choose contract-to-hire for your business model:
The most important reason is that it can save you money.
According to the SBA (Small Business Administration), the true cost of hiring a full-time employee is 1.25 to 1.4 times their salary. For instance, if a full-time employee’s salary is $50,000, the actual cost of hiring is between $62,500 to $70,000. This includes costs associated with hiring, training, insurance, workers’ compensation, paid leaves, and retirement benefits.
When you contract out work, you only pay for the work that is done. You don’t have to worry about employee benefits, vacation time, or sick days.
Trial before hiring
With contract-to-hire, you only have to commit to an employee for a set period of time. You can then reassess whether or not to keep them on. This also means that businesses can trial an employee before fully committing to them, which can help avoid making bad hires.
Scale up as needed
Finally, a contracting business model provides opportunities for growth. As your company grows and gains more clients, you can add new services and hire additional contractors to meet the expanding needs of your business. With a well-run contracting business, there is no limit to how large or successful your company can become.
If you are looking for top talent to help your business succeed, Everest Recruiting is the workforce solutions company for you. We specialize in industrial staffing, technical recruitment, warehouse staffing, and other niches.
Our forte lies in finding, screening, and interviewing the best candidates for your organization including contract-to-hire, temp, and permanent workers.
Contact us to hire the best contract workers for your business.