Employee vs Independent Contractor: Which Do I Choose?
Are you struggling to make the right decision on whether to work through global independent IT contractors/freelancers (self-employed) or to work through global employees? Here is a simple-to-use checklist that will help you understand your pluses and minuses of using either of the two for any of your global projects.
The choice of the suitable workforce greatly depends on your company tasks and objectives. If you need to fulfil a short-term project, engaging an independent contractor may be enough. In addition, contracting often saves companies costs.
But if you are aiming to complete long-term projects and provide sufficient customer support, you are more likely to need the specialists with the unique skills and expertise. In this case, you should focus more on how you can retain the talent that has this knowledge rather than the cost.
By offering employment to global workforce and employing them via a Global Employer of Record, you can easily attract the brightest global minds. Various employee benefits like health insurance, sick leave and annual leave help make your offering more competitive compared to contracting (an independent contractor isn’t entitled to any of these benefits).
It is a common trend for employers, especially in IT&Telecom field to worry about how they can engage suitable workforce for their projects. In fact, decision makers often tend to be confused with an independent IT contractor/freelancer vs a global employee dilemma. This is particularly important considering the high risks of working with the misclassified workers, which may result in costly penalties and litigations for your company, let alone low engagement and dedication as independents often work on several projects at a time and may therefore lose focus.
To help you avoid these risks and choose the right workforce for your global projects, Acumen International has designed a simple checklist that will enable you to understand when it is the right case to hire an independent contractor or employ / convert a worker into your global employee.
This checklist will help you understand the basic questions to address when planning your global workforce, give you useful information about what to look out for when making your decision on who to hire, and help you determine the benefits, objectives and possible risks of using either an independent IT contractor or employee for your specific global projects.
By using the checklist, you will be able to discover what type of workforce suits best to each particular project.