Scaling Your Business? The Pros And Cons Of Hiring Different Types Of Workers - Deepstash
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Types of hired help

Types of hired help

Various sources can help to scale your business. Technology is one crucial element. The other is the people behind your product or solution.

You will need more people when your business grows, but they don't have to be full-time employees. You can hire different types of help, such as outsourced companies, subcontractors/freelancers, and full-time employees.

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Full-time employees

Benefits

  • You have a lot of say over what tasks a full-time employee accomplish daily.
  • They build specialised knowledge about your product or services.
  • They develop strong relationships with clients if they're in client-facing roles.
  • They become a crucial part of your company's culture.

Drawbacks

  • Full-time employees come with mandatory costs and other expenses.
  • If you want them to stay committed, you have to keep them happy by offering competitive salaries, benefits, training, tools and company perks.

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Subcontractors/Freelancers

Benefits

  • You hire a subcontractor for a specific project, so expenses are limited to the contract.
  • You don't have to pay salaries, benefits, or offer company perks.
  • You have a medium-level say over their work tasks.
  • You're hiring a professional who knows their craft and don't have to provide too much oversight.

Disadvantages

  • They might not be the best fit for your company or project.
  • They might leave for another hire at a higher rate if they don't want to work with you long-term.
  • They work with multiple clients and can't devote their full focus to your project.

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Outsourced companies

Advantages

  • You have low maintenance. The company's team has a history of doing a specific type of work and requires the least overseeing.
  • You don't have to work with the outsourced company again if you're dissatisfied with the outcome.

Disadvantages

  • You have low control. You can't tell a company you've outsourced how to do the steps your way.
  • You might encounter problems with differing work styles and expectations.

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Remember to follow all laws

Ensure that you comply with all applicable labour laws to prevent severe consequences. For example, the US IRS can penalise employers who misclassify employees.

If you work with the applicable employment laws and treat your workers with care and respect, a strategic approach to hiring workers will benefit your company.

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karlabro

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