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4 Reasons to Hire Contractors Instead of Employees for Your Business

Posted on December 21st, 2016
Hire Contractors

As the desire to work from home increases, contractors may become more readily available than traditional employees.

These workers are able to have the flexibility to work the hours they would like, live closer to their families, and have a better overall work-life balance, all while still bringing home a paycheck.

The ability to work from anywhere has increased the number of freelancers and contractors who are available for hire.

If your small business is looking to expand, don’t count these workers out. You might actually be better off hiring contractors instead of employees for your business. Here are some reasons you might want to hire a contractor instead of an employee.

Utilizing a Service You Don’t Need Regularly

If you are growing your business into a new niche or market, you might find yourself needing some temporary help as you navigate the waters of this new area. Another example could if you need to have your webpage re-done, and you won’t need on-going service. These are both instances where hiring a contractor might actually make more sense than hiring an employee. Contractors are already skilled in the services you need, alleviating the need for training. Plus, contractors know their work may not be on-going, making them perfect for tasks you don’t need performed regularly.


If your business needs help or advice on a project or process, you might want to utilize a contract consultant. Unless you need to consistently review processes or policies, having an employee to review those won’t be beneficial for your business in the long run.

Do keep in mind that if your business is expanding into a new area and you might need help with the same task regularly over the long-run, an employee could be a better choice than a contractor. However, starting out with a contractor could provide a good “test run” to see if it’s something your company could grow into.

Contractors Can Be  Cheaper

You may pay more per hour to hire a contractor, but you likely won’t pay as much as you would for an employee. With a contractor you don’t have to pay taxes, social security, or benefits. Depending on the service needed, most contractors usually have their own licenses and certifications. These are things that you might have to pay for if you were to hire an employee. Even if you need a contractor for a year-long project, it probably won’t cost you as much as you would pay to have an employee for the same time.

More Flexibility

If your business revolves around seasonal work ,or there are times where business is naturally heavier, hiring a contractor is the way to go. By hiring a contractor, you aren’t obligated to keep paying them when work doesn’t come in or the season ends. Plus most contractor’s work on contracts that are easy enough to get out of if work should dry up.

Contractors can be a great resource for you and your business. So, make sure you don’t rule them out as an option when your business is growing.

Kayla Sloan

Kayla Sloan

Kayla is passionate about helping people get their finances in order so they can pursue a life of freedom. She quit her job to work for herself with over $148,000 of debt and swears it was the best decision she's ever made!

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