Tuesday, Mar 31 2015

Employee vs. Independent Contractor: Determining Your Needs and Core Requirements

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employee contractor

Hiring managers must work within their budgets to hire the staff their companies need in order to remain productive and competitive. Once you’ve determined a need for acquiring talent, the next important question is often whether you should hire a permanent employee, or a contractor.

Each choice comes with advantages and disadvantages. When making this decision, it’s important to understand the needs and core requirements of the position you’re hiring for, and know which type of employment arrangement will be a better fit for both your organization, and the candidate.

What full-time employees can offer

Depending on the type and responsibilities of the position you’re filling, hiring a new permanent employee can allow you to strengthen your organization and improve overall productivity and performance. Some of the advantages of full-time employees include:

  • Collaboration: Employees typically work from a central location, enabling your company to foster collaboration and connectivity among staff
  • Communication: Most full-time employees share similar work hours, which improves organizational communication
  • Long-term productivity: With a full-time employee, the company receives continuous output by dictating all or most of the employee’s assignments and work projects

When should you consider a contractor?

Independent contractors can benefit your organization in a variety of situations. Hiring a contractor is typically a better choice when:

  • You’re hiring for a project with a set start and end date
  • Your company’s current employees can’t handle the entire project workload
  • The current project has tight deadlines for deliverables
  • You need temporary, specialized skills or expertise on a project basis, but not for day-to-day company operation

Hiring considerations for independent contractors

Before you begin searching for a contractor, confirm that you have the proper approval for hiring more staff. With project work that requires a contractor, determine your budget ahead of time, and include the target bill rate for the contractor in your calculations. Depending on the type of contractor you need, you may have to adjust your budget and the expectations of management prior to looking for talent.

Armada provides real-time, accurate snapshots of your local market conditions that will help you gauge supply and demand for specific IT employees, both permanent and contract. Accurate data on direct hire salaries and hourly rates can help you create an effective budget for your staffing needs. Contact us today to learn more.