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How Can Using Contractors Benefit A Business

June 6, 2018 Corey

When you are running your own business, there are often lots of things to think about. From accounts to marketing and your core work, you will no doubt be busy most of the time. One way in which you can help reduce the load on your shoulders is by using contractors to carry out work for you. Many companies choose to do this now for the benefits it brings.

What is a contractor?

Of course, before you think about hiring one, you need to know what a contractor is. Put simply, they are a company or sole trader that you contract to provide agreed upon services to your company. Once the job is done and you are happy with the work, the contract ends. The crucial thing to note is that a contractor is not a salaried member of staff with all the responsibilities that this brings to you as an employer.

Contractors can help your business succeed

As noted previously, many businesses will use contractors to help them out on certain jobs or tasks that they can’t do themselves or need assistance with. Most commonly seen in industries like construction, there are some great reasons to use them:

  • Less admin – As noted above, an independent contractor that you contract to perform an agreed upon service for a period of time is not classed as an employee of your business. This means that you do not have to worry about the tax administration of any other relevant contributions. Look for independent contractors that work through a top quality umbrella company, as they will do all the work in this area for you.

 

  • Less hassle – In many ways, using an independent contractor is a lot simpler for you to manage. You do not have to spend time training and communicating with them in the same way as you would a full-time employee. Instead, you simply set out what needs to be done, and they do the rest. This leaves you with more time to spend on other core tasks that your business needs you for.

 

  • More cost-effective – Because independent contractors are not salaried employees of your business, you do not have to pay out for company health insurance or retirement plans. This naturally helps saves your organization a lot of money in the long-term and achieve business success.

 

  • More flexibility – One big problem with salaried staff is that they may not have the skills for a job that comes in and may need valuable time to get up to speed. Also, when business is quiet, you still have to pay them for coming in to sit at their desks. With contractors, both these situations are avoided. You simply hire the expert contractor you need when a job comes in and only hire them when there is work to be done.

Using a contractor makes business sense

In the modern business world, many companies are moving away from the traditional model of employing salaried staff. Instead, they are moving to using independent contractors for the above benefits it brings. With more flexibility, less hassle and less employer responsibilities, it is easy to see why.

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Hellllooooo! My name is Corey and I'm a bit shy, but I love to write. I am a web developer full time and blogger part time. Although I'm the Code Star, I don't only write about design & dev. Read More…

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