Many people nowadays rely on full-time employees to run their companies, but there are alternatives that can help reduce overhead costs. This includes everything from outsourcing to automation and productivity software programs.Technology is also advancing in this area so the cost of having staff will continue to drop over time while increasing efficiency across all industries.
The “why do companies hire part-time instead of full-time” is a question that many people ask. There are many reasons why companies hire part-time employees rather than full-time ones.
So you’ve made the decision to recruit your first employee—or many workers.
But what sort of employee is best for your company? Is a solid, full-time staff required, or would a few part-time workers suffice? Should you use freelancers instead?
While precise figures are difficult to come by, it is believed that over 40% of the workforce in the United States works on a “contingent” basis. This applies to both freelancers and contractors, as well as regular part-time employees. Not only that, but freelance work is on the increase, with Intuit predicting that 40% of the US workforce will be freelance by 2020.
The “gig economy” is expanding, for better or for worse—so who should you hire?
First and foremost, you must identify why you need an employee. To assist you in determining this, I’ve outlined three common business needs: businesses in need of assistance with a specific type of project; businesses in need of assistance with a smaller amount of work on an ongoing basis; and businesses in need of an employee for a larger amount of regular work. I’ve also gone through the benefits and drawbacks of full-time, part-time, and freelance or contract staff, so you can decide which is best for you.
If you need a certain sort of staff for a specific project…
Hire a contractor or a freelancer.
Do you need further assistance for a certain task?
Perhaps you want assistance in revamping your website or establishing a marketing plan for a certain project. Perhaps you’d want to employ a graphic designer to develop some fresh pictures to aid with your branding.
These are some examples of why a freelancer or independent contractor may be a suitable match for your company’s requirements. In the pros and disadvantages section below, I’ll go through this in further depth.
Advantages of employing a freelancer or contractor include:
You have the option of hiring for certain expertise.
You engage a freelancer or contractor to perform a particular assignment when you hire them. So you’ll be analyzing if they’re a good writer, graphic designer, or anything similar.
While cultural fit is still important, it is less important for freelance or contract staff. What matters most is their precise skill set and whether or not they are capable of doing the work you want.
This makes it much easy to locate someone who can satisfy your requirements. Rather of recruiting for the whole package, you’re just interested in their skills.
It may be less costly.
You can be put off by a freelancer’s or contract employee’s upfront fee per hour or per assignment.
For example, the typical hourly pay for website design has been stated as $40-100 dollars per hour—understandably, you could be taken aback by such statistics.
Consider the true cost of employing a full-time employee before dismissing the concept and deciding that a full-time employee is more cost-effective.
You’ll be paying for more than just their services when you recruit a full-time employee. You’ll be responsible for paying health insurance and other benefits, as well as taxes on your portion of the employee’s Social Security and Medicare contributions, as well as state unemployment compensation and workers’ compensation insurance. This might boost your payroll expenditures by as much as 20% to 30%.
Hiring a full-time staff has a lot of advantages, which I’ll discuss later. However, pricing isn’t always one of them—in the long run, a freelancer will be far less costly.
You may employ from any location.
Hiring freelancers or independent contractors may allow you to take advantage of this trend, since remote teams are increasingly becoming the standard.
Programmers, developers, and content producers are often recruited remotely since they may work from any location as long as they have access to the internet and a computer. If your job can be completed with little or no face time, employing freelancers or contractors can greatly expand your alternatives.
This might be a significant benefit if you want to hire people from outside your location, want to develop a virtual workforce, or just have a restricted amount of office space.
There is a lower level of dedication.
You are under no obligation to continue working with your freelancer or contractor if things don’t work out between you and them.
Because you are not committed to a freelance or contract employee, you may have greater control over ensuring that the services you get are precisely what you want.
Additionally, see How to Hire Your First Employee.
The disadvantages of employing a freelancer or contractor include:
They may be less devoted to your company after the assignment is over.
This lack of devotion is reciprocal: your freelancer or contractor may not have a strong feeling of loyalty or dedication to your company.
This may or may not be relevant depending on the project. A freelancer or contractor, on the other hand, may not be the best option if you want to recruit someone who represents your company’s values and objectives and is devoted to the company’s long-term success.
You’ll be able to use their abilities just for specified tasks.
Even if you believe your new contractor or freelancer would be a fantastic match for another position inside your organization, you won’t be allowed to employ their skills for anything other than what you engaged them for.
While it is conceivable for permanent workers to wear numerous hats, contractors and freelancers are less likely to do so.
If you need someone to do a modest bit of work on a regular basis…
Employ a part-time worker.
So, you’re looking for someone to help you with a long-term project, and you’d want them to be a permanent member of your team. However, you don’t believe you need a full-time employee; either because you don’t believe you’ll have enough work to justify employing them full-time, or because the expense is exorbitant.
Consider employing someone part-time in this situation. It’s the best of both worlds in some respects.
Advantages of employing a part-time employee include:
They may be paid on an hourly basis, which will save you money.
Hiring part-time staff might help you save money if you’re concerned about your budget.
The obvious advantage of employing a part-time workforce is that you are not legally compelled to pay benefits to your workers. So, if you’re short on cash and need to have some work done quickly, it’s something to think about.
They are still an integral part of your organization.
You have the advantage of being able to onboard and integrate your new part-time employee into your organization, unlike a freelance employee.
This implies that if you want to create a coherent, strong business culture, recruiting part-time staff may be a better option. You’ll be able to confirm if they share your vision and establish a rapport with them.
It’s a wonderful compromise.
A part-time employee may be an excellent method to divide the gap if you need more than just a one-time assignment performed but aren’t sure you’re ready for full-time support.
Assume you’ve just launched a clothes business. You’d want to employ someone to help you set up and maintain your social media pages, as well as generate and send out a weekly newsletter for your company. You don’t need to accomplish much; just a few hours every week would suffice. This circumstance would be ideal for a part-time employee; it isn’t a one-time assignment, but it may not be enough work for a full-time employee.
The disadvantages of employing a part-time employee include:
You could have a lesser pool of qualified candidates.
Hiring part-time workers might put you at a disadvantage when it comes to the available workforce.
An employee with greater experience and a better skill level is more likely to be looking for full-time work. After all, a full-time career comes with greater pay and perks that part-time work just cannot match.
This might be an issue depending on the role you’re recruiting for. If you’re recruiting for an entry-level role, though, you may not have to worry about this.
It’s still a long-term partnership.
This may be beneficial, but it can also be detrimental if you and your new employee don’t get along.
If your employee isn’t producing the job you expected, it’s more difficult to cut connections in this relationship than it is with freelancing or contract staff.
While you may terminate an employee if they aren’t doing well, this is a lot more difficult than just finding a new freelancer or contractor for the next assignment.
Part-time workers are less likely to stay with your company for the long term.
Your part-time employee may decide at some point that a company that provides full-time employment would be a better fit for them, or they may be juggling many jobs.
Depending on the sort of job you’re recruiting for, this may or may not be a problem, but it’s something to consider.
If you need a regular employee for a higher quantity of labor…
Employ a full-time worker.
So you’ve chosen to recruit a permanent employee; you want someone who will be with you all of the time, who can handle more work, and who will be dedicated to your firm.
If this is the case, a full-time employee may be the best option for your company.
Advantages of employing a full-time staff include:
You’ll receive a member of your team that you can incorporate into your company.
Are you worried about integrating your new team member into your company’s culture and ensuring that they are a good cultural fit? There is no better way to guarantee this than to hire a full-time employee.
Simply said, having a full-time employee reduces the likelihood of rapid turnover, which is one of the greatest killers when it comes to building a solid business culture.
Also see: Hiring for Personality Rather Than Experience
You’ll be able to use all of their abilities.
When you hire someone full-time, you have a better chance of being able to utilize them in a variety of roles.
Consider the case when you engage a graphic designer to develop your logo. Simple, discrete, and generally a freelancer or contractor’s best bet.
What if, when they’re working on the logo, you discover you’d want them to produce promotional pictures for banners and signage as well? Because the extra work is outside of the exact project description you hired them to perform, you’ll have to employ and charge them for it.
If they were your own full-time graphic designer, however, it would be expected that they would be accessible for more than one job.
If you anticipate you’ll need an employee on a regular basis and want to utilize their talents in a number of ways, full-time employment may be a better option.
They’ll be more willing to go above and above for your company.
A full-time employee is more likely to be dedicated to your company as a whole and, as a result, be more willing to put in more work.
If you periodically need everyone to stay late and put in a little more work, a full-time employee will likely be more eager to do so than a part-time or freelance employee since they have substantially more invested in your company.
Also see: What Characterizes Your Company’s Culture?
The disadvantages of employing a full-time staff include:
It will almost certainly be much more expensive.
As previously said, employing a full-time employee is not inexpensive.
However, if your budget allows it and you believe a full-time employee is the best option for your company’s requirements, the additional expense will most likely be surpassed by the advantages.
You will be in charge of onboarding and training.
When you hire a full-time employee, you’re responsible for ensuring that they’re properly trained, which isn’t the case with freelancers or contractors.
In certain cases, though, this disadvantage might be advantageous: Onboarding and training a new employee may be a fantastic method to ensure that your new employee is doing things “the business way,” and it can also help you lay the groundwork for your employee to consistently produce the excellent outcomes you expect.
If it isn’t a good match, it is more difficult to let them leave.
If the partnership breaks down, you’ll have to let your freelancer or contractor leave, rather than just finding a new one, as you would with part-time staff.
So, which is the better option?
That is, of course, a trick question.
There is no one-size-fits-all employee; it all depends on your company’s demands. It’s a significant choice, so sit down and consider all of your requirements, alternatives, and concerns before making a decision.
Which employee type did you find to be the most beneficial to your company? What factors affected your choice? Please let me know in the comments section.
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The “benefits of full-time vs part-time employees” is a question that has been asked many times. Full-time employees are typically more expensive than their part-time counterparts, but the benefits they provide make them worth it.
Frequently Asked Questions
Is it better to have full-time or part-time employees?
A: For a small company, it is often better to have part-time employees as they will be more easily replaceable in case of emergencies. On the other hand, for large companies with high employee turnover rates and lots of tasks that are constantly being assigned to new workers on short notice, you could go full time.
When should you hire full-time employees?
A: If your business has the potential to become profitable, you may want to hire full-time employees.
What are the benefits of hiring full-time employees?
A: There are few benefits to hiring full-time employees, but some of the most common include getting rid of the need for an employees schedule and performance reviews.
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