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Why Many Companies Choose to Hire Independent Contractors

Working environments across the world are changing. More and more young professionals are choosing to break away from the restrictive ties of a 9-5 job in order to work as an independent contractor for multiple employers. This gives the contractors the ability to work hours they prefer and on projects they are passionate about.

Research conducted by the International Business Times found that almost 33% of Australians preferred freelance work, so we’re expecting independent contractors to become much more prominent in the upcoming years.

It’s not just contractors who benefit from freelance work either, it’s companies too. In fact, many companies actually prefer to hire contractors than full-time, salaried staff. There are many reasons why contractors can be better for your business than hiring a new employee.

Specialised talent

Usually, a freelance contractor will become greatly experienced in a particular part of their role and become extremely good at it. This is known as finding a ‘niche’. Once the contractor has mastered their niche, they’ll charge more money for their services but deliver exceptional results.

In comparison, when you’re looking to hire a new team member, you’ll usually look for someone who is more of an all-rounder. This means that they’ll deliver good work for a number of different services but it is unlikely to pull the same punch as a specialist contractor’s would and therefore not provide the same results.

The output of specialised contractors are more likely to deliver better standards of work, attract more attention and appeal to a higher calibre of clients than a non-specialist employee and therefore can be much better for your business.


You may be thinking that hiring such specialist contractors for your individual tasks may prove to be too costly, but you’d be mistaken. You’ll actually find that hiring freelance contractors can save your business money. Yes, you may pay a higher hourly wage than you would to a full-time employee, however, you have more of a flexible working arrangement with contractors so you only use their services when required.

Hiring contractors was once considered disruptive to the worker’s best interests. Now, however, it’s considered an efficient alternative by many employers and employees because contractors can work independently when required and then once the task is completed, you no longer have an obligation to continue working with the contractor, so you can save reserve money.

In comparison, when hiring a full-time employee, you are committing to paying their wages each month no matter whether or not you need their services. On top of that, you’ll pay more to provide a workstation, healthcare, training and management to your employees. You’ll find it a much more cost-effective option to have multiple flexible working arrangements with a number of contractors than to keep a full time of employees on board.

Frees up management’s time

One of the biggest drains on management’s time and resources is overseeing their staff. When you have a team working in-house on multiple projects you’ll find that they need advice and support often. On top of that, you’re likely to schedule one-to-one meetings with your team members to ensure everything’s running smoothly. These hours can soon add up to a full day lost at work.

When you use contractors, you’re likely to have one full project brief and then email correspondence throughout the project until the task is nearly completed. This greatly frees up management time that can be put to much better use handling other responsibilities.

Less likely to have staff problems

When you have a large group of people working together in close confinements, such as an office, you’re likely to find that some of your staff just do not get along. This can create an uncomfortable work environment and can affect staff productivity levels. When working with contractors, this problem is negated because your team will work remotely and independently.

More dedicated and enthusiastic

It’s not uncommon for employees to become complacent in their roles and for productivity to slip. This happens everyday at companies across the world. Independent contractors, however, tend to be more motivated and dedicated to their work, which makes them more productive.

Contractors pick and choose work that interests them and work in short bursts for individual clients. This means that they are more focused, energetic and can complete the project much quicker and to a higher standard than an in-house employee would.

Certica® has provided compliant independent contracting solutions to Australian companies for over 16 years and we pride ourselves on finding solutions for our clients who want the freedom that compliant and fair contracting arrangements provide. If you engage contractors and you have a concern about managing your workforce, please contact us immediately for a no-obligation risk assessment and practical tips to ensure you’re always a step ahead.

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