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  • Monique Huizar

Independent Contractors vs. Employees


Contrary to the pros and cons between hiring employees and Independent Contractors, according to Darrell Zahorsky’s “The Great Debate,” (see link below) the cons of hiring an Independent Contractor are far from having any level of “lack of control” and that there are “no fixed rates” couldn’t be further from the truth. Honoring a contract and fulfilling the terms of their obligation is every Independent Contractor’s main concern, often taking on several job roles, and improving the work flow. What better way to describe loyalty than that?

Business loyalty is what an Independent Contractor is committed to and, most of the time, that’s what matters. From my perspective, I feel that I’m better equipped to offer a wider array of skills and services as an Independent Contractor, than those I was limited to by an employer. My satisfaction comes from meeting the specifications of a product that can generate benefits to the business not the person, often times, the employer puts between myself and achieving that end. Sadly, forcing high-achievers like myself to fail meeting the definition of “employer loyalty.”

Unless an employer is dedicated to building their employees and grooming them into a higher level of responsibility, the employee/employer relationship is not necessarily more valuable than that as with an Independent Contractor. In turn, unless the employer is interested in building their unique brand, they’re probably not interested in advancing their employees into higher positions that can serve to safeguard their brand.

If it’s the task that matters, an Independent Contractor is well suited. What it really boils down to is to the economic advantages and disadvantages of either alternative. In that regard I agree with the article that employee’s can be more of a liability than an asset.

Article:

http://sbinformation.about.com/cs/laborlaws/a/contractor.htm

Article Summary:

Pros

Independent Contractor: Reduced Overhead, No Health Benefits, Work On Demand

Employee: Dedicated Loyalty, Multiple Roles, Improved Work Flow

Cons

Independent Contractor: Lack of Control, No Fixed Rates, Misclassification Penalty

Employee: Added Responsibility, Extra Overhead, Lawsuit risk


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