What Are the Pros and Cons of Hiring an Independent Contractor?

Whether you are launching your first start-up or managing an existing small business you know that supervising your company is not an easy job. Getting some support will make the job easier and alleviate some pressure and stress when the workload becomes too much. As your company grows you will find that you do not have the skills to handle every challenge.

Know that you should turn to professional individuals to help your small business succeed instead of taking on too much work or tackling things outside your skillset. Independent contractors will help you handle your workload better or tackle certain job duties that are not your power.

CocoSign is a reputed brand used worldwide and in almost 190+ countries. There are many contractor agreements and contracts available online at CocoSign.

Significant news outlets have mentioned it, such as Forbes, Tech Advisor, New York Times, etc. for its best services. Before hiring a freelancer, assessing the pros and cons of utilizing independent contractors is important.

Pros Of Hiring An Independent Contractor

There are many Pros of independent contractors. Here we will discuss a few of them:

Additional Assistance

Independent contractors can provide you the manpower your small company needs to succeed. You might need extra hands to chip in when work picks up, and an independent contractor is a no-obligation way of finding that support. You will reap the benefits of assistance without taking on additional full-time workers.

Savings on Prices

As an employer, you don’t have to pay federal or state payroll taxes, insurance care, workers’ compensation, unemployment, etc. You also don’t have to think about purchasing new appliances, providing specifications for office space, travel, and admin.

CocoSign’s contractor agreements help you save your money and energy so just visit CocoSign for hiring an independent contractor.

Versatility

Working with independent contractors provides flexibility as you staff your small company. On a per-project basis, you can hire a variety of contractors, rather than committing to them for a lengthy period. Mix and match talent as the needs of your organization alter.

When you need support in a new area of your market, you could develop ongoing relationships with some independent contractors or seek out new freelancers. You can get independent contractor templates from CocoSign.

Protection

It may be an additional measure of security to recruit an independent contractor because it gives less exposure to employment-related litigation.

Less employment litigation exposure

You can’t be sued for some of the most popular labor cases, such as unfair termination and damage to the workplace. You could get slammed with a discrimination complaint in rare cases.

However, this is highly doubtful due to Title VII, the most well-known job discrimination statute, but there are other laws that independent contractors (IC) might use as an attack strategy. So, just in case please don’t discriminate.

Cons Of Hiring An Independent Contractor

Lack of Management

When you invite an independent contractor to your small business team you don’t have much influence over the person. When it comes to doing the actual job, they are able to create their own schedule, time period, and work environment.

In addition, although you may have a professional relationship with the contractor, your perceived authority may be reduced. You simply need to wait or find a new contractor to take his or her place if the person goes on holiday for three weeks or is slow to respond to emails.

Phase of Search

Independent contractors are not often looking for jobs by knocking on your door. You can put an ad in the local paper or on the web when you recruit a full-time employee, and easily get answers from several interested applicants.

You’re hiring from a smaller pool because fewer people are pursuing contractor jobs. The search process may take longer or require more work than you plan, but you may still be able to find the right freelancer.

Turnover

independent contractors will likely come and go more frequently than full-time workers depending on the project or natural turnover, as some may not be the best match for the needs of your company. Others may find work full-time or just move on.

This staffing approach does not work well for small business owners who do not want to seek assistance regularly, because turnover is more common with independent contractors.

Augmented Control

By hiring an independent contractor you expose your company to further exposure by the government for illegal classification. There may be serious penalties for company owners who compensate people who should be known as employees as if they were independent contractors.

Intellectual Property

The risk of not controlling the IP that your independent contractor produces is close to “lack of control,” If their production becomes integral to your company and you lose the right to the IP, this may cause major losses.

Wrapping Up

As you know the pros and cons for hiring an independent contractor so there should be an independent contractor agreement. So you are preferred to download the templates for the independent contractor agreement from CocoSign.