Why Hiring An Independent Contractor Is a Smarter Investment?
According to the United States Census Bureau there are approximately 10.3 million independent contractors in the United States currently. This number has been on the rise each year based on the high demands across the nation. In 2010 a study conducted by the software company Intuit predicted that by the year 2020 the use of contingent workers-freelancers, temps, part-time workers, contractors, and other specialists will exceed 40 percent of the workforce in the United States2. This prediction suggests that within the next 4 years many large and small business companies will be shifting towards hiring independent contractors from companies like X-Pro LLC instead of full-time employees. However, the main question is what does this all mean for small and large business, also how can this help you? The following statement from the Intuit 2020 Report states that.
“By contracting directly with a business or through an agency, these contract workers increase business efficiency, agility and flexibility. They also cost less and turn employment expenses into variable costs. Contractors, or contingent employees, have a greater say in when and how much they work, giving them greater work-life balance. Today, roughly 25-30 percent of the U.S. workforce is contingent, and more than 80 percent of large corporations plan to substantially increase their use of a flexible workforce in coming years” .
Small Businesses: When it comes to small businesses and start-ups, choosing a contractor over full-time employees can be a difficult choice. Having to handle many obstacles from establishing the company to making sure that the company has all the necessary resources can create unneeded stressor that an independent contractor can help solve. By hiring contractors, small businesses have free range to pick which ones best fits their business. According to Scott Shane, Professor at Case Western Reserve University, states that “taking on contract workers provides a way to tap skills that the company would otherwise be unable to access”4. This is true in that contractors like X-Pro can help small businesses and individuals turn their ideas into tangible products; whereas hiring full-time employees run the risk in having lack of ability in conceptualizing ideas, which may lead to a reduction in productivity. Contractors are self driven and want to be successful in the work they do, therefore there is no overhead management required. The idea here is that contractors are doing a job that they have a passion for, you can be at ease that they know what they are doing and they are the subject matter experts in your company’s needs.
Large businesses: There are also challenges large companies face that will often have them decide between hiring a contractor or a full-time employee. However, according to the article, Why Large Companies Prefer Hiring Contractors vs. Permanent Employees by Elissa Barnes, a Senior Account Manager states that the main reason for selecting contractors “has to do with the cost to employ someone full-time…full-time employees are very expensive to a company”5. In summary, choosing between independent contractors like X-Pro verse hiring full-time employees is a smart investment for both small and large companies. Studies have shown that over time the workforce will continue to shift towards contractors and more developing companies are seeing them as a top choice for hire. It is always good to remember that Contractors are able to provide excellent work in a cost effective manner that enhances productivity through their efficiency, ability, and flexibility.