Freelancers or Full-Time? The Benefits of Each Type of Employee

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Freelancers or Full-Time? The Benefits of Each Type of Employee on avanteinsurance.com

… and which your small business should be hiring

When it comes to accomplishing your business’s needs, it can be difficult to decide whether to hire freelancers or full-time employees. Both types of workers have a specific set of pros and cons, and one may be more appropriate depending on your company’s situation, industry, and developing requirements. Keep reading to learn about each type of employee, and how to determine which one is the best fit for your organization.

The case for freelancers

If you are just starting a business, it may make sense to hire freelancing employees rather than full-time, exclusive workers. Freelancers are essentially part-time employees that work on a case-by-case basis. As an early-on business, much of the work you need accomplished may be sporadic. That being said, it may not make sense to invest thousands of dollars a month on full-time staff.

Hiring freelancers might also make sense if you have a seasonal spike in sales or projects that your business can’t quite keep up with. Another situation that could benefit from freelance is when the work you need accomplished is quite specialized.

Freelancers won’t be tied down to a contact or a salary agreement. And if the relationship with your company and the freelancer does not work, for any reason, you will most likely be able to let the employee go with few hard feelings or contract breaches.

The case for full-time employees

If you’re running or starting a small business, full-time employees are almost (and sometimes actually are) partners in your business. As they’re on salary and potentially eligible to receive promotions, pay-raises, bonuses, and benefits, full-timers are more likely to invest additional time, energy, and care.

Great employees can help you find new clients, develop new products, find ways to make your business grow, increase efficiency, and deal with sticky situations. Therefore, unless you plan on running an everything yourself, you’ll want to have full time workers as part of your staff – the commitment and effort are extremely beneficial.

What about both?

The best thing about deciding between freelancers and full-time employees is that you don’t have to choose! Often, having a combination of the two is exactly what a business needs to thrive.

One great strategy is to hire a freelancer with the potential of him or her becoming full-time. This gives you the opportunity to test a worker’s abilities, character, habits, and fit within your organization without making a serious commitment right from the get-go. If you both work together well, they can become a valuable full-time colleague, and if not, no one will be too disappointed.

Conversely, if a valuable full-timer moves away or takes on other commitments, you may have the opportunity to retain some of their services as a freelancer – potentially having them train new full-time employees or consulting on their areas of expertise.

Freelancers and full-time workers both have a time and place in nearly any setting, and it’s up to you understand the benefits (and drawbacks) of each to make informed decisions for your organization. Meanwhile, you should look into protecting your business with an insurance company that can provide personalized assistance. Call the experts at Avante Insurance today for a free consultation.