The Many Benefits of Hiring Independent Contractors

The Many Benefits of Hiring Independent Contractors

Even though our economy is sluggish we can't allow our businesses to be. One way to keep costs low without compromising quality is to engage the services of independent contractors.

MARKETING

We all know that continuous marketing of our product or service is necessary for survival. However, in a troublesome economic period the financial expense of promoting a business can seem overwhelming. Rather than minimizing your amount of advertising, another option is to hire an independent copywriter and graphic artist to produce your marketing materials.

With freelance contributors you don't limit your marketing strategy options to the imagination and creativity of the same group…over and over. A new writer can offer a fresh voice and cadence to promotional materials that will keep the reader stimulated and engaged. An accomplished graphic designer can create an original look that will inspire your customers to linger longer on the page.

Independent contractors' fees are generally much lower than those of the big ad firms that need to cover their high costs—rent, salaries, utilities, supplies, taxes and benefits—and still make a profit.

CONSULTANTS

If your payroll cannot comfortably support a full-time expert, hiring an independent consultant only when necessary can be extremely cost-effective. Also, because independent consultants work with a variety of businesses they must keep informed on a number of topics—through conferences, trade publications and research—and are often able to address problems your staff expert may not have considered.

ADMINISTRATIVE/CLERICAL

If you typically call a temp agency when all you really need are documents produced, an offsite contractor can save you money, time and anxiety. He/she will key your data from his/her office and return to you in an e-mail attachment. Consequently, you don't have a stranger in your office with access to sensitive files and expensive equipment, there's no training time required, and you pay only for what you need and receive—not for time spent on the phone or reading magazines during down times.

SUBSTANTIAL SAVINGS

Because independents don't require office space or use your electricity, phone/fax, parking garage, or office supplies, you can significantly lower your costs. You also don't pay insurance premiums, vacation pay or sick days. They get paid for what they produced—that's it. Period. Eliminating those costly benefits can give your business a healthy boost in its cash flow.

ENVIRONMENTAL BENEFITS

Because most independent contractors work from the home, there are fewer cars on the road and less stress on the environment and infrastructure.

In summary, hiring independent contractors and consultants can work to your advantage because:

• you save money by paying only for the projects you need—when/if business is slow, you're not locked into paying a salary your profits can't support;

• there are no employee taxes or benefits to pay;

• you don't limit your options to the imagination, creativity, knowledge or experience of one person or group;

• if your contractor's efforts don't effectively promote your business, you aren't "stuck" with him/her;

• you don't risk the legal problems (i.e., harassment/prejudice/wrongful termination claims) that employers face; and

• independent contractors don't have the 'safety net' of an employer—no "off days" allowed—so they must shine 24/7 to keep their clients coming back, acting as referral sources, and providing positive references.

According to the U.S. Bureau of Vital Statistics, the number of people working as independent contractors rose from 8.5 million people (6.7 percent of all workers) in February 1997,* to 10.3 million (7.4 percent of the workforce) in February of 2005.**

*http://www.bls.gov/opub/ted/1999/feb/wk1/art02.htm

**http://www.bls.gov/opub/ted/2005/jul/wk4/art05.htm

Phyllis Childs, Houston, Texas 2008