What are the advantages and disadvantages of hiring contractual workers?

Question

If you could include your name and the country you are from, it would be of great help. thanks

Answer 1

Depends on the job being performed, if no benefits are offered, just a salary, then it is less labor costs for an employer. You also face turnover with having to replace the people every six months if you don't extend their contracts.

U.S. based H.R. rep.

Answer 2

Advantages:

You can get a body in the door quickly.

If they are horrible and you can them the first day you don't have to pay the agency (if you have a good contract).

You don't have to file and pay taxes, insurance or other bs.

You can let them go at anytime, for any reason and never pay unemployment

You don't have to go through the entire hiring process

Sometimes you luck out and get great skills for less money.

No benefits, vacations or paid sick days

Disadvantages:

In periods of low unemployment rates, the workers temping are temping because they are horrible workers and can't find real jobs.

You open yourself up to being called all the freaking time from the recruiter

Sometimes you are limited in the jobs your temp can perform.

Other than that, there are not many disadvantages

Teresa E, United States of America

Answer 3

The advantages of hiring a contractual employee is you can change them if they don't perform well. You are given enough time to assess his performance. the best thing about contractual employees, because of the absence of security of tenure and with the hope of being put on probationary status, they give their best and perform well. They are very cost effective to the company since you don't need to extend the same benefits as what you give to regular employees.

The disadvantage is whenever you hire contractual employees for position entailing direct contact with customers, or position of trust, there is a tendency for them to express their dissatisfaction to customers because of the impression that they have critical contributions to the company.

Just be very careful on where to place them and how you handle them.

Answer 4

Anne Troy
United States

Advantages:
* No paying health/hospitalization and other benefits
* No paying a percentage of Social security tax on the wages
* No paying unemployment tax on the wages
* No liability insurance required (contractor should have their own or be bonded)
* You may not need to pay overtime rates

Disadvantages:
* You may not be number 1 in the contractor's heart (lack of loyalty)
* You generally pay quite a bit more per hour (this is the big disadvantage)
* You may not "be the boss" when you prefer to be--i.e., you may want them to work Saturday, but they won't

(Please tell Teresa that I need a job.)

Answer 5

Let me add to the above.

Disadvantages

Any skills or unique capabilities that the person learns walk out the door with them.

In software systems, you may lose the only person who knows how to troubleshoot the code