Hiring

[TelecommutingMom]

What are the pros and cons of hiring versus using independent contractors?

[jmbosworth]

(Note: this is valid only in the U.S., I don't know about other countries)

Whenever possible, you should stick with independent contractors for the most part, especially for small start-ups. One of the main benefits is that, as independent contractors, your workers are responsible for taking care of their taxes. You don't need to set aside a percentage of their wages and handle W-2s, etc. Second, if you have any sort of company-paid benefits for yourself (as your only employee) you do not have to provide these to the contractor.

The only thing you need to be careful of is using independent contractors LIKE full time employees. If you have someone coming in 9-5 Mon through Fri every week for 6 months, guess what? They're an employee and they would be able to sue you for any benefits granted a full employee (read: same as your benefits) and you could get in some tax trouble. To be safe, hire indepenent contractors to do specific tasks, then let some time elapse before rehiring the same person for another task.

Hope that helps.

[AlexSno]

I will go with normal hiring. Everybody has to eat from somewhere afterall

[David Sandusky]

Pros and cons to hiring vs contract has many implications as you know. That is why you ask. Recruiting should be part of your strategic plan and each discipline reviewed independently. Many skills can be outsourced or contracted and some are more important to your culture and customer experience. Everyone represents your brand, look at how each discipline you need fits into your strategic plan. Gathering professional opinion to you specific business model would be a pro in the form of an advisory board. Hire well.

[Maryjane]

Hiring through contractors has the biggest problem that you cannot get the complete idea about the employee. They will modify or hide the employee information, just to get their incentives.

[johnsmith_2010]

well i think hiring with experience is not good we must have to hire some fresh candidate to make them experienced for any company.

[BarbaraKParker]

I still prefer hiring straight employees. You are in control of employee salaries and you can count on a certain amount of loyalty. Loyalty can have a positive effect on productivity, as can a sense of belonging that comes with a regular job. What's more, having steady, regular employees will improve overall workflow since everyone knows their job (or jobs) and how they fit into the big picture.