The Contract Worker & Your Business

Why hire under contract?

• It is highly likely you will save money overall. I know, I know it’s hard to wrap your mind around paying a larger hourly rate, retainer, or a larger contracted dollar amount, however, the expenses behind hiring can be much greater including; fees incurred by utilizing a staffing agency, benefits, taxes, unemployment compensation insurance, workers compensation insurance, additional office space, equipment and so on.

Evaluating the true cost of an employee hire:

Figures are estimated: $30,000 base salary. $5,000+ in benefits and PTO. $2,000+ Social Security and Medicare Taxes. $2,000 in Federal Unemployment Tax. $2,500 State Unemployment Tax.
ESTIMATED TOTAL: Approx. $41,500 (not including overhead) OUCH!

• Flexibility in allotted hours and work on demand. Each task can be completed as needed likely with a higher productivity. When the job is done the contract is completed, allowing for cost control.
• Greater efficiency. Contract workers come specialized in particular task sets hire within the range of skills offered to maximize your dollars. This is also a cost reduction for the hiring company as time is not needed to be spent on training of a new employee.  
• Continued relationship. Developing a long term relationship with your contract worker leads to your contract worker having a greater knowledge of your personal preferences, your business goals, anticipation of your needs, outside expertise, suggestions to increase your bottom line and creative solutions.

What a contractor can provide for your business:

1. Increased productivity.
2. Outside perspective – exploration of underlying needs.
3. Compiling of information.
4. Problem solving.
5. Implementation of solutions.
6. Defined processes for corrective actions.
7. Facilitation of educational material.