Workers come in all kinds of different employment options in today’s modern age. From short to long term employment, temporary and permanent contracts, there is an option to suit any business or person looking for work. Most businesses when it comes time to employ new workers often want to weigh up the differences between all the different options in order to determine what might be the best version for them. However, the two main forms, traditional and contractors both have benefits and no option outperforms the other. Instead, your business can benefit from using a combination of both workers, with each playing a different role in your organisation.
As the majority of staff in workplaces are traditionally employed, it is an easy role to understand. These workers are engaged in ongoing work, with set hours, a specific position within the business and generally all their tools are provided by the organisation.
Not only do these employees receive regular pay schedules, but they also receive benefits such as paid leave, super and they do not accept any responsibility for the company’s financial situation. The employer is also responsible for deducting the appropriate income tax and handling the administrative tasks.
This type of employee is best for more traditionally structured businesses and organisation, where the employee needs to be solely focused on their task or responsibilities.
In contrast to a traditional employee, independent contractors have a very different type of relationship with businesses who hire them. Typically, the contractor is implemented due to their specific set of skills, something that the organisation needs and cannot source internally. The contractor is then engaged for a certain time-period or to complete a one-off project or reoccurring task.
The contractor will then decide on their own hours, and the employer will usually provide little supervision of the independent contractor. In most cases, the contractor will also provide all their own tools and supplies. Essentially an independent contractor runs their own business working to complete independent work for your business.
As part of running their own business, an independent contractor must keep track of their own finances, from tax through to superannuation. They do not receive regular payments from an employer, instead they deliver an invoice to the company for the hours and tasks they have worked. The contractor then bears full financial responsibility for their own work and often maintain their own private insurance.
Regardless if your business is looking for labour hire or employment-based workers, at First Personnel, we can deliver the right solution to your business. Our experienced consultants can source the right candidate from our extensive database to help your business succeed. We can also advise businesses and organisations on the right employment solution for your work needs and business structure. If you are uncertain which option would suit you best, contact us today.