When you have a project to be completed many businesses ask themselves the question – is it more expensive to hire a contractor than an employee? The reality is independent consultants can be a very cost-effective option because they are experts in their fields, meaning that they will require little-to-no training, saving both time and money.
Additionally, most independent consultants will not only have a bill rate, but will also work with the client to deliver a carefully crafted proposal that will define the scope, methodology and requirements of the project. This way, the client will know exactly how long the project will take, and what they should expect to pay.
Independent consultants are only paid for the duration of the project rather than receiving an annual salary on a permanent basis. The business will also avoid paying employee expenses such as health insurance, retirement fund matching and additional taxes. The infusion of Healthcare Reform and Obamacare has brought these savings to the forefront of many businesses radar screens.
So, if you go with an Independent Contractor it can be more cost efficient when the situation merits a project-based worker. It’s important to always check your contractor’s business registration status and references before they start work for you. Make sure they fill out the proper paperwork and are on boarded separately from your business employees. Failing to separate the distinction could end up in a costly mistake and wipe away all of those savings you realized up front.