Crowdsourcing Solutions

Hiring Employee Vs Independent Contractor: Pros and Cons


There are both advantages and disadvantages of hiring a full time employee or an independent contractor. Most of the organization nowadays for the sake of growth avoid adding number of employees but are often left with no option apart from bulk hiring. This thoroughly depends upon the need and deed of the organization and truly varies from organization to organization.

The difference between a regular employee and an independent contractor is such that an employee will be permanently there serving for the upliftment of the organization on a daily basis whereas an independent contractor will assure the fixes of any defects anytime in the smooth running of the organization. The salary of both varies upon different factors.

Employee vs Independent Contractor

There are both pros and cons of hiring employee and at the same time pros and cons of hiring independent contractor. Some of them are enlisted below:

Pros or Benefits of Hiring New Employees:

Following are the advantages of hiring regular employees:

1. Selected by the authority:

An employee is someone who is being selected in the organization after properly analyzing them for the roles and responsibilities they are required to fulfill and hence there are minimal chances of any employee performing bad or not up to the mark.

Employees are being selected by the company to fulfill the needs and deeds of the company and hence they are bound to serve their purpose.

2. Salary credentials:

Often an employee’s work is being measured by the amount of time she/he is devoting in the organization and is being charged based upon the average of that. Their salary is based on monthly basis and is prematurely decided by the authorities superior to them.

The employee is given her/his salary based upon the number of hours they are devoting in the organization and this is fair to all employees working in the organization.

3. Regulated:

The company that directed the employee is regulated with their policies and they are bound to follow them. They can decide all the basic to important decisions which the employee has to follow. They can assign any time shift to the employee and they have to appear in that time, this way it becomes easy for the organization to manage the employees as they will follow all the instructions with full deeds. A regulated employee will serve best for the organization and to the individual as well.

4. Easy leave application:

This often is easy for the employee that if in case they need any vacation they can easily go out and during that time some other employee will be doing the compensation of their work.

By this way it becomes easy for the individual to work as an employee in any organization as there is more flexibility to this job and much scalability in growth which also depends upon individual work.

5. No regular monitoring:

The employees know their job and they will keep doing that for the sake of the organization. Once the employee is known with what they are suppose to deliver to the organization, they don’t need regular monitoring by any staff member rather they will be performing their prescribed duties without any interventions from others, smoothly and on time. This saves the time of an organization and helps them to grow.

Cons or Disadvantages of Hiring New Employees:

Following are the disadvantages associated with hiring employees, some of them are enlisted below:

1. Regular demands:

The one thing that every employee seeks for is either they want vacation every now or then or they might be feeling unwell in the most important days which becomes mandatory for the organization to grant them leave. This is a thing with regular employees come up to the organization with varying demands which at times becomes difficult for the organization to manage.

2. Regular Salary:

Even if the employee’s work is not up to date still the amount of salary being fixed for the employee need to be payed. This is a major drawback as the company is actually not earning anything and will eventually go in debts.

The people or the employee needs regular increment over a year of 6 months or so even if their contribution for the growth is next to null.

3. Regular taking care:

The employee’s personal deeds will be taken care by the organization whether it being the social life of the employee or taking the employee to some vacation. The company has to follow rules to keep the employees happy so that they don’t switch.

Maintaining the health policies of the employee or helping them with their work is a curse for the organization, as if anything went wrong legal cases may get into action.

4. Training the employees:

Once any employee gets in the organization it becomes mandatory for the organization to invest their time to help the new employee get use to what they will be serving and how they will be serving for the upliftment of the company.

Often for the sake of keeping this, they invest a hell lot amount of time in them and happens that the employees they were devoting their time and energy teaching, just switched the organization.

5. Difficult recruiting:

The roles or the responsibilities the employee are being hired for are becoming day by day difficult and often choosing the best candidate for the particular job profile becomes troublesome and meeting people with the same interest as they want consumes their energy and time as well.

The hiring process is difficult to execute as only after working with the employees they can come across the dedication of that employee.

Pros of Hiring an Independent Contractor:

Following are the advantages of hiring an independent contractor, some of them are enlisted below:

1. Saving money:

This is a major advantage of hiring the independent contractor as they will be paid on hourly basis and won’t be required to pay for the full day work or month. This is a boon for the organization as they will be getting their desired task done within stipulated time and within the fixed budget. They can’t ask for anything more. A task done time and within the fixed budget.

2. No relationships:

When an employee performs bad or behave rude it becomes difficult for the organization to handle them as they cant fire the employees as they have long term goal with them, so rather they prefer to sort out or manage the situation. But on the other hand firing a contractor is much more simpler as they are not weld with the company and if they are not working the way they should be, strict actions can be taken against them.

3. No additional training:

This is the case for a contractor that they don’t need to be trained for the work they are being hired. As majority of them will be experienced and will be working or doing the same task for over years and have expertise over it. This saves a hell lot amount of time and the organization can easily built a trust in them seeing the years they have been doing the work.

4. No legal attachments:

The contractors are not legally bonded with the organization they are working with, it can be for a specified project but still there are not any bonds and hence they carry their personal license or the proof of individuality which can be updated with the course of time as their knowledge or experience increases.

The organization need not require any severe or legal issues when it comes to dealing with the contractor they can simply fire them if their job is not meeting their expectations.

5. Work hour flexibility:

They can work for any time of the day or the month and divide their time and also can work under different organization at the same time. This helps them to earn more and hence their job is more flexible. They can take leave for months and return back to work without any problem. There is no time constraint in their job which is a boon for the individuals.

Cons of Hiring an Independent Contractors:

Following are the disadvantages associated with independent contractors some of them are enlisted below:

1. Rigidness of the contractors:

The more the contractors are being hired, the more they start doing the task according to their needs and deeds. They start controlling the things they are about to do and the company has to suffer a major loss because of this.

Often the tasks are terminated as they are not being delivered by the contractors on time, this creates a rigidness and often creates a problem in the organization. They need no guidance from any outsiders and they will make their own rules.

2. No specifications:

Often the contractors are being hired for a particular project and they might not be there in the company after the achievement of the work they have performed but that doesn’t mean that the contractor starts taking too much time for the completion of the task.

Taking too much time in the completion might hinder the growth of the company as the deadlines been set up by them won’t meet and eventually they will suffer from a great loss. They should be made specific to meet the goals of the organization.

3. Multiple work affecting their performance:

Contractors usually takes contract from a number of company at the same time and are devoting their time in each one of them but at times of becomes very difficult for them to give their cent percent in all the company they are involved in and hence they tend to take more time for its completion and give reasons for not performing the specified work.

The performance of both the contractor and the organization grows down seeing the kind of work they are doing and eventually affects everything regarding the company.

4. Selfishness:

The contractors will be performing their work keeping themself at profit to give the utmost importance, while this is not the case with regular employees they tend to believe in making their company grow as indirectly they are also associated with it. They work for no other brand but themselves.

They are always trying to include their brand name in the company so that they can get more contracts. They don’t work for the organization rather they work for the individual where the work of the employee is more for the company.

5. Security:

They will assign copyright issues unless and until you meet the specific requirements put forward by them. Once you meet them then only you can continue with your work but keeping the brand they are associated with in the context of the project, so that their marketing will also get nurtured. They think for themselves and work for themselves, for them what matters is their personal growth and nothing more. The more the security issue there will be, the more the trust issue will arise.


In order to conclude, I would like to say that neither the employees nor the contractors are perfect. If we take a look keenly to the work they are doing, they both should be equally nurtured. The work should reflect their personalities and not anything else. The company should feel delighted by the staff they are associated with, this way growth is easy both for the company and the individuals working under them.

Proper nourishment of the individuals should be favored and focus should be made more on the growth of the group. To keep the chaos less, work being done by both are important and are being appreciated every now and then and they should be rewarded and the cons should get minimal with the passage of time and everyone should start taking their job seriously.