At some point in your business journey you may find that you
need more hands. The decision to hire
employees should not be taken lightly.
Though employees can be the lifeblood of the business, they bring with
them many responsibilities.
First let’s distinguish between employees and independent
contractors. Employees work for the
business, in most cases exclusively.
Businesses typically provide the tools and systems the employee uses. Employees often get benefits ranging from
vacation and personal leave to health insurance and pensions. Independent contractors work for themselves,
usually in their own space with their own equipment. Contractors do not get benefits from the
business, and they typically work for more than one business. One of the main distinguishing
characteristics between employees and independent contractors is that a
business must pay taxes for each employee, and not for contractors.
There are many considerations a business owner must address
when deciding to hire employees. Here
are just some of them:
·
How (hourly, salary, commission) and how much to
pay the employee
·
Employee benefits (vacation, holidays, health or
other insurance, pension, etc.)
·
Where the employee will perform their job
·
Training
·
Required taxes and reporting
·
State and federal safety laws; worker’s
compensation
·
Setting expectations, performance reviews,
disciplinary action if necessary
After considering all of the requirements and your particular
situation, decide whether it will be best to hire employees, contractors, or
both to fulfill your business needs.
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Kim Luedke is Co-owner of ProfessionalEdge Associates, offering a wide range of marketing and support services to businesses that want to increase their success, but aren't in a position to add to their staff.
Kim Luedke is Co-owner of ProfessionalEdge Associates, offering a wide range of marketing and support services to businesses that want to increase their success, but aren't in a position to add to their staff.
