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Business

Employees or Freelancers — Which Option is Better for My Startup?

All types of businesses have made it a priority to save money, but the cash-strapped startup is more important. You don’t need to allow the economic downturn to stop you from hiring the right people to help you realize your goals. How can you find a way to balance the need for employees while still staying within your budget?

This article will explain the advantages and disadvantages of hiring part-time workers or full-time workers. It also explains how to decide which type is best for your startup.

 

A full-time worker’s pros and cons

Full-time employees are more likely to be available to work extra hours or late nights if your startup is a success. Because they have a deep understanding of the culture and values of your startup, they can contribute to the company’s growth by providing unique ideas, creative approaches, and innovative input.

 

Pros

For a job that requires constant attention, a full-time worker would be a great fit. A traditional worker is more likely to be invested in your startup’s success and will be more responsible. You will feel that they are part of your team. These employees can also be trained to provide high returns on their investment. These employees are expected to show loyalty, which is a valuable quality in any workplace.

You can gain an advantage over your competitors by finding, training, and hiring the right employees for your company. This will allow you to build employee loyalty and satisfaction. Finding a dedicated employee is the key to success. This problem is illustrated by the fact that 71% say that hiring managers have had difficulty finding full-time employees skilled enough to fill their job openings.

 

Cons

The downside to being a full-time worker is that you have to be committed. This is something many people fear. It can be difficult to terminate employment if you hire a traditional worker. Full-time workers should expect to be paid more due to the costs of social security, unemployment insurance, and health insurance.

 

Part-time work: The pros and cons

Part-time workers may be the best option for those looking for a happy middle ground between a full-time employee and a freelancer. This option is ideal for startups that don’t have 40 hours of work but still require assistance with tasks and projects.

 

Pros

Part-time workers can increase or decrease their hours as needed. Part-time workers do not have to be covered by company health insurance, and they pay fewer taxes.

Startups should hire part-time workers with an honest, openly stated intention to move to full-time when the company grows. This will make it easier for part-time workers to be motivated to help your startup succeed.

If your startup chooses to take this route, it is important to put a strong emphasis on screening potential recruits. Part-time workers are involved in the company’s vision and flexible with scheduling. The opposite can happen, however, where a part-time worker doesn’t feel part of your long-term vision and instead juggles multiple jobs.

 

Cons

Keep in mind, however, that highly skilled part-time employees are more likely to leave you for a full-time job. This situation becomes more worrying when you consider the training that a new hire may need and the possibility of them leaving you in favor of a competitor.

Part-time workers are more likely than full-time workers to have multiple responsibilities and second jobs. Part-time workers may have a harder time balancing work and family life than freelancers.

 

What are the pros and cons of hiring a freelancer?

Freelancers, once a relatively new term, are now gaining popularity and claiming their place in the economic landscape. Recent studies show that the “gig economy”, which is three times more popular than traditional jobs in the United States, is growing at a rate of three times. Workers are now realizing they have other options, as remote work is becoming more popular.

 

Pros

The freelance worker can work anywhere. However, they are also ideal for projects or tasks that require a high level of detail. A freelancer is ideal if your company has a clearly defined result.

Your company won’t have to pay for health care, sick leave, or parental leave. Startups who require remote work can benefit from the abundance of freelancers and ever-changing online platforms for freelance work.

 

Cons

However, freelancers have their own set of disadvantages. Companies should not hire freelancers to do complex tasks or work that requires creative thinking. Avoid putting a contract worker in charge of a task that is directly connected to your company’s image.

People who can be fired or hired at will are less likely to commit to the company’s bigger vision. It’s difficult to expect freelance workers to do more than they can in times of need unless there is a pay increase or promotion.

You will need to play a greater role in setting clear expectations and closely following their progress than you would for a worker. Many companies find that asking freelancers to save and complete work online is an easy way to monitor progress. For example, cloud-based tools like Dropbox or Google Docs allow you to track your freelancer’s activity, such as their login times and how long they spent on a particular task.

There are cybersecurity issues that could arise when hiring freelance workers. Ask workers about their cybersecurity practices online when interviewing them. This will ensure that no financial information or new ideas are compromised.

 

Your business is key to hiring the best workers

It doesn’t matter if you hire a full-time worker, part-time worker, or freelancer. However, it is crucial that you are clear about what you expect and the terms of your contract before you hire anyone. To avoid any confusion, lost time, or endless negotiations, it is equally important to give your workers clear goals and deadlines.

It is important to fully understand your company’s needs before you hire any type of employee. It’s important to understand the type of work that you require, as well as the skills required, before hiring any type of worker.

Disclaimer. The opinions and views expressed in this article are the authors Shalom Lamm.

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