Category: HR KPIs.

As a company, you probably have your own employees that you can rely on a daily basis. They are your pillars that will help your company grow. However, like any house needs pillars, it also needs windows, doors, and bricks – and you could say that contractors serve that purpose.

What are Contractors?

Contractors are, in a way, like employers – only unlike employers, they do not have to work for the company on a regular basis. Independent contractors will provide services and goods for a company as per a verbal or signed agreement – but will work only when required.

For example, a full-time employee may have a 9 to 5 program, from Monday to Friday. A contractor, on the other hand, may receive a phone call one day and be told that their services are required for a few hours. They are generally paid in a freelance manner, and have limited resources to offer; however, they can be a great resource in a bind.

Unlike an employee, however, a contractor has more freedom of movement – and responsible for the way they control their work. A contractor will choose when to work and how they work – and they may even hire “substitutes” to do the work for them. Unlike employees, contractors are generally higher-paid professionals – which is why they are the go-to for a more delicate project.

Analyzing the Growth in Associated Workers

Like with your employees, the more contractors you are able to hire over time, the higher your business has grown. This is why you ought to keep a close eye on how many contractors you have going.

For this reason, your finances should also be put in order. The more profit your company brings, the more contractors you should be able to hire. This is why a growth in contractors is a direct indication of the growth of your company.

Independent contractors may also be analyzed in comparison to the number of hours given by a full-time employee. First, you will have to take the number of contractors that you have on your services – and calculate the hours that they have all provided every month in your service.

The added numbers should be divided by the number of hours on a full-time schedule – and you will be able to associate the costs directly to your employees. This way, you should be able to get an idea as to how much is spent on every contractor – and whether or not you should be able to hire more.

Final Thoughts

Contractors are crucial for every business since they are able to cover tasks that a regular employee cannot. They may be hired on an occasional basis – but they are just as important for a company as a full-time worker.

This is exactly why you should be particularly attentive to the number of contractors you have. The more you have, the more backup you will receive – but at the same time, the more it may cost you in the future if they are too many. You need to find an average trend so that you can hire just the right number of contractors.

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