Top Reasons For Hiring Contractual Employees – What Businesses Should Know

The number of people who do work on a contractual basis is increasing every year. According to a report made by the non-profit organization Freelancer’s Union, employer-independent workers form one-third of the total workforce in the US. These people either work for companies on a per-project capacity, or on their own as freelancers.

But before we delve deeper into the reasons for hiring contractual employees that business should know about, a clear delineation of terms is in order.

An employee is a person hired by a company (either on a full-time or part-time basis) who is subject to federal and state employment laws. These laws contain stipulations regarding pay, taxes, benefits, and termination procedures that should be strictly followed. Most of the time, employees are allowed to work with only one employer at a time and are completely barred from working for competitors.

A contractor or freelancer, on the other hand, is a person who works for business on a finite, project-by-project basis. The term “contractual employee” is actually kind of a misnomer since state and federal laws regarding employees do not apply to this kind of working arrangement. The contractor is considered as a business on his or her right; he or she does not have an employer-employee relationship with a business, but rather, a client-provider one.

Reasons for hiring contractual employees – top benefits

One of the top reasons for hiring contractual employees is the fact that it can be cheaper and faster for businesses to hire experienced …