Entrepreneur.com explains why all entrepreneurs should know the difference between freelancers, employees, and contractors. The need of hiring extra help for your remote business starts at a moment when you realize that you’re actually losing business. But what kind of help does that business need?
Freelancers have a different relationship with the business owner
The first thing every entrepreneur must know is that freelancers and contractors are self-employed individuals. The main difference between them and employees is that employees are hired by the company. A business owner should also be informed that freelancers and contractors will work by their own schedule, and most often get paid once they finish a certain project. Employees work by the company’s schedule.
The difference between freelancers and contractors
Yet, a freelancer and a contractor may also bring some differences, and those are mostly related to their work. For example, a freelancer is most often a remote worker who completes shorter projects. Contractors work on larger projects and those that last longer.
Business owners are well aware of the positive sides related to hiring a freelancer. Freelancers are responsible for reporting their own earnings and taxes. Remote workers also save a lot of the company’s money because they don’t require office space. Freelancers are the best choice if an entrepreneur is searching for a worker that can complete shorter and smaller projects.
When to hire a contractor or employee?
When a business owner has a huge burden related to a certain, most often big project, they should definitely consider hiring a contractor. For entrepreneurs who expect their workers to attend meetings, support all office projects, and constantly be there – hiring an employee should be the best choice.
Overall, businesses, especially online or tech businesses often don’t require many employees, therefore – hiring freelancers and contractors may be the best thing to do.
