While all these types of workers can perform the same job, choosing between hiring a freelancer, contractor, and long-term employee can be overwhelming. There are many variables that factor into your decision. Here are a few things to consider before making a decision.
Why It Matters
According to FlexJobs:
While it might seem like a matter of semantics, job classification is an incredibly important aspect of any employment arrangement.
How To Choose
So, how do you choose? You should factor in things like:
- Urgency of job or project
- Duration of Need
- Cost
For example, if you’re looking for someone to help tackle a short-term project, and need them fast, sometimes your best bet is a freelancer. You don’t have to offer benefits or insurance, and there’s no long-term commitment if things go awry.
If you’re looking for a long-term situation, then a regular employee is a good idea. This allows you to form a relationship that gives, as well as takes. These may cost you more, but you have the benefits of someone there for the long-term, someone committed to their job, and loyalty.
For a long-term commitment without having to offer benefits, a contractor may be of interest to you. This is similar to a freelancer. Independent contractors take care of their own taxes (you provide a 1099) and insurance. You pay them based on the agreed-upon terms, and many work for employers for years.
Other Situations To Consider
There are other things to take into consideration. For example, if you hire an independent contractor, they pretty much decide when they want to work. This may not work for your needs. In fact, an independent contractor sets their own rates and has a specified end date.
With an employee, you choose what you intend on paying and their work is open-ended as long as things are working out between the business and them.
A freelancer is closer to an independent contractor. They typically have their own rates and when they work as long as it is done when you need it. They often work remotely too, depending on the type of job. As mentioned, this can be a long-term relationship.
What’s the Verdict?
There is no easy answer to which one to choose. You have to look at how much you want to pay, taking benefits into account. How you want to handle the IRS, and if you need someone on a long-term or short-term basis.
About Synergy
Synergy Solutions is an executive and contract search firm focused on roles within the technology sector. If you have questions regarding this article or would like to discuss strategy on open roles at your company, please contact us and someone will get back to you within the next 24 hours.